OUTLOOK FOR WOOL

Press, Volume LXXXIX, Issue 27010, 9 April 1953, Page 13

OUTLOOK FOR WOOL

COMMERCIAL

CLEARANCE OF SOUTH AMERICAN STOCKS “GREATEST SURPRISE OF THE SEASON” The greatest surprise of the current wool season has been the rapid clearance of accumulated stocks in Argentina and Uruguay in conjunction with the year’s world clip grown in other countries, says Winchcombe, Carson, Ltd’s, review. The whole of the staple bought has not been used. Some of it has gone into needed stocks in the manufacturing countries; but consumption has substantially increased during the last nine months and that fact has placed the raw material in a very sound marketing situation. Maintenance of. existing values is most desirable rather than a further upward appreciable trend in prices. Financing of purchases is an important . factor with would-be buyers and a much advanced market could exhaust the monetary resources of the manufacturing section of the trade. That position would curtail competition, eventually lead to a drop in prices and the creation of nervousness among consumers. Existing confident feelings in the market are the best asset the industry has from growing the staple to the sale of finished products to the world’s people. Trade Improvement Continues World figures show that a substantial improvement in trade in woollen and worsted yarns was experienced in 1952, and it has continued. Mill turnover in the United States has not expanded to the degree seen in other great consuming countries, but it has increased compared with 12 months previously. In Australia, America has bought with fair freedom, although not in spectacular strength. United States buying activity has proved a notable feature in South America indicating a trend in use to lower-costing crossbreds in preference to Merinos, the first cost of which ft higher. Figures cannot be produced which indicate that the newer man-made fibres are ousting wool from popular favour in the States. Output of them is not yet sufficent seriously to displace the sheen’s staple. An American authority recently expressed the opinion' that wool, the natural miracle fibre, will offer strong resistance to the competition of man-made and so-called miracle fibres. They have a "tough” task to shake the great favour in which the natural fibre is held because of the comfort, wearing capacity, lightness and warmth it supplies. Great Britain's trade returns show a marked increase in exports of wool fabrics to the United States. By way of example, the United Kingdom in December shipped 1,738,000 square yards of woollens and worsteds to the States. 142 per cent, more than in December, 1951.