WOOL PROSPECTS DISCUSSED

Press, Volume XC, Issue 27443, 1 September 1954, Page 15

WOOL PROSPECTS DISCUSSED

“Testing Time Early In New Year”

ENTIRE OUTPUT SHOULD BE ABSORBED (Ngw Zealand Ptg»s AMociation) _ _ LONDON, August 31. The Dominion can reasonably look forward to selling their entire wool output again this season, says the financial editor of “The Times,” London, in discussing the new wool-selling season and the pending resumption of the London auctions. “Whether prices will be maintained when the main weight of the Dominion clips begins to press on the market is another question/’ says the writer. “Since the collapse after the Korean boom, buyers have been acutely sensitive to prices and they can be expected to remain cautious this season, always making certain before they enter the market that the price can be safely passed on to the final consumer. “The testing time may be In the early weeks of next year when supplies from the 1954-55 clip reach their peak. This is not to suggest that a major break in values is likely. Indeed, the Dominion’s over the last season have received the biggest wool cheques In their history save for the abnormal 1950-51 boom season and they can reasonably look forward to selling their entire output again and even if average prices are lower, the effect on earnings could be cushioned by some increase in the volume of sales.’’ The writer says that the trade is .showing reluctance to forecast prices, and adds, “their hesitancy certainly does not reflect any burdensome surplus of wool. On the contrary, the three major woolproducing Dominions have scarcely any carryovers. It seems likely, however, that the world clip will be larger than last season.

“Prospects for world consumption of wool are far less easv to assess. In several sections of- the wool textile industries, both' in this country and on the Continent, as well as in Japan, order books appear to have become slimmer, while American textile trades do not look like maintaining their promising recovery that emerged last spring. “Against this, however, must be set the low level to which wool stocks have fallen in most manufacturing countries. Probably they represent a little more than four months’ requirements.

STOCK SALES ASHBURTON There was a large yarding of fat sheep at the Ashburton stock sale yesterday. Prices for fat ewes and wethers showed an increase of 3s to 4s on last week's rates, but fat hoggets eased slightly on prices last week. An increased proportion of shorn sheep was entered.

Fat wethers in the wool sold up to 89s for medium quality, to 99s for prime and up to £5 5s far extra prime wethers. A. B. Lochhead (Buccleugh) sold seven at that figure.

Fat ewes in the wool realised up to 61s Id for medium grade, to 76s for prime, and up to 86s Id for extra prime ewes. Fat hoggets in the wool made up to 77s Id for medium quality, to 87s Id for prime, and up to 89s Id for extra prime hoggets. Shorn hoggets sold up to 79s Id. In the store sheep section ewe hoggets sold up to £5 7s 6d, two-tooth ewes in lamb at £5, sound-mouth ewes in lamb at 745, and failing-mouth ewes in lamb at 68s. LONDON METAL MARKETS (NJZ. Press Association—Copurlght) LONDON, August 30. Metal quotations are as follows;

Buyer Seller £ a. d. £ a. d TinSpot .. .. 730 0 0 730 10 0 Forward .. 730 0 0 731 0 0 Lead— Spot .. .. 99 5 0 99 10 0 Forward .. 98 0 0 98 3 0 Zinc— Spot .. .. 77 2 6 77 5 0 Forward .. 77 5 0 77 10 0 CopperSpot .. .. • 240 10 0 240 15 0 Forward .. 237 10 0 237 15 0 Gold: £12 9s 9%d an ounee.