WOOL PRICES RISING

Press, Volume XCVI, Issue 28414, 22 October 1957, Page 13

WOOL PRICES RISING

Recovery From Decline 'Rec. 11 p.m.) LONDON. Oct. 21. Wool prices in producing countries, in the Bradford tops market and in London wool futures had recovered from last month’s decline and were rising, the “Financial Times” said in a leading article today.

This was at a time when the Middle East situation was leaving all other commodities unchanged For the first six months of this year, wool prices rose while almost all other commodity prices fell, the “Financial Times” said.

The timing of the rally suited the argument that fear of war started the upward price movement. but it was doubtful whether any easing of international tension would be followed by a relapse in wool prices, the “Financial Times” said.

Wool was statistically a better proposition than other commodities such as metals, which had responded quickly in the past to political crises. Moreover, the wool market had not been subjected to the gradual erosion of confidence seen in many other markets for a year or more. Financial stringency and balance of payments difficulties in some of the main consuming countries might have been expected to counteract the impulse to build up stockpiles of wool out of fear of war, the “Financial Times” said.’ But this had apparently not happened, as the present rally showed.

In Bradford, where business had been sluggish and often possible only on the offer of concessions. top prices had in effect increased.

In Australia, British and Continental buying had been on a larger scale. On the London futures market, both Bradford and the Uniled States had contributed to a rise in prices. This suggested that prices at the London sales opening this week would be higher, the “Financial Times" said.