WOOL SALES IN AUSTRALIA

Press, Volume XCVI, Issue 28446, 28 November 1957, Page 19

WOOL SALES IN AUSTRALIA

Values Firm At Sydney (N.Z. Press Association—Copyright) SYDNEY, Nov. 27. Compared with yesterday’s prices, values were fully firm for most descriptions of Merino fleece and skirtings at the Sydney wool sales today. Of the 17,497 bales offered, 16.879 were cleared with good general competition from Japan, the Continent, and Britain, with support from local mills. Short-length wool still showed noticeable irregularity, but there was improved demand for superfine fleece. Comebacks and crossbreds were firm on yesterday’s rates, and today were mainly good style, drawn from the later shearing districts. Prices included:—Good 60's. 481 d per lb: good average 58's, 73Jd; good average skirtings 58’s, 56d.

LONDON SERIES OPENS TODAY

Large Offering (N.Z. Press Association —Copyright) LONDON, November 26. The largest offering of wool since early in the year will be offered at the November-December London wool sales. They will begin tomorrow and will end on December 6. The total quantity for sale is 60.500 bales, including 21,500 bales from Australia. 30.500 bales from New Zealand 5500 bales of English wool, and 2300 bales from South Africa. The committee of London Woolbrokers, said today that firms in Britain had been compelled by the higher bank rate and more severe credit restrictions to start reducing their stocks. Spot supplies available for the sales may attract stronger competition than in the sales which ended on November 1. At that time the tone of the Bradford tops market was weak, with sales at several pence below quoted rates. Australian and South African shipments were arriving continuously, but the United Kingdom had bought sparingly in these markets since early in the season. Consequently incoming supplies were needed for consumption, although the latter was now some 10 per cent, lower than in June when activity was at the year’s peak and uncommitted stocks were said to be negligible.

WOOL INDUSTRY IN BRITAIN

Trade Slack Since September (N.Z. Press Association—Copyright) LONDON, November 25. A general slackening of activity has been the feature of the United Kingdom wool industry in the last two months, according to the wool industry correspondent of the “Financial Times.” Most sectors have been affected, in particular the heavy woollen industry, where many companies are on short time.. Among the causes of the decline are uncertainties caused by falling raw wool prices and the recent-tightening of the credit squeeze. The export trade also had been affected by the imposition by the United States of its high tariffquota system, the correspondent said. United Kingdom consumption of wool for the first half of the year was running at more J.han 5 per cent, above the 1956 level, but since June there had been a steady decline, and in September consumption was more than 3 per cent, lower than a year ago. Although activity was still high compared with the level of recent years, the fact that deliveries were currently in excess of the growth in new orders had increased the feeling of caution in the trade. “Real Test in New Year” The newspaper said in an editorial that it was too early to assume that the wool market had finally settled down after the sharp decline of the first two months of the season and suggested that the real test would not come until the New Year. It was possible that the demand from Japan might be less strong in future. Another source of uncertainty was the reduction in world consumption.

‘‘The slowing down of textile activity has been common to most of the main consuming countries —Western Germany and Italy are exceptions—but in Britain and the United States, and in France and Japan, the decline has been marked,” the newspaper said. Australian Supplies

“All these are factors making for lower prices, and it is clear that they largely explain the weakness of the auction markets. They have attracted so much attention that the prospect of smaller wool supplies from Australia has been brushed aside. “The course of prices will therefore depend on which one of these two considerations —lower supplies or lower demand —predominates.”

Primage Duty Exemptions.—Tanners', furriers’, and bootmakers’ inks and stains, crude tanning materials, mimosa extract and wattle extract have been exempted from primage duty, according to a Gazette notice. The Minister of Customs (Mr E. H. Halstead) said that the exemptions, which cover a large proportion of the tanners* raw materials, had been made on the recommendation £3 the Board of Trade.—(PA.)