Sensitivity Of Wool Market Demonstrated At London Sales

Press, Volume XCIV, Issue 28157, 21 December 1956, Page 19

Sensitivity Of Wool Market Demonstrated At London Sales

“The sensitivity of the wool market to international developments was typically demonstrated this month at the final series of London wool sales tor 1956.” says the London office of the Bank of New Zealand, in a report received in Christchurch yesterday. “After attaining a considerable measure of stability, the market reacted immediately to the Egyptian Users, many of them caught **ith low stocks, started to buy heavily because of the threat of interrupted Wpphes. . The result was a general rise of ■oout 10 per cent, in prices, and in *»me cases it was up to 15 per cent. Anen, when the situation improved

again in the Middle East, buyer resistance set in. and prices came back a j little, but the tone of the market remained lively until the close.” Discussing the prospects for the next series of London sales, which will begin on January 14. the report says that if renewed international tension causes further heavy buying in tops and yarns the raw material market is likely to be correspondingly active. With more settled conditions, however, the recent adjustment in prices may be taken further. “The basic wool situation is still very sound, and offerings during the remainder of the season should be readily absorbed.”