N.Z.’s WOOL CHEQUE

Press, Volume XCVII, Issue 28540, 20 March 1958, Page 10

N.Z.’s WOOL CHEQUE

Drop Of £22m Expected

(New Zealand Press Association) WELLINGTON. March 19. Total wool receipts this season could be £22 million less than last season, the chairman of the New Zealand Wool Commission (Mr G. A. Duncan) told the Electoral College of the Meat and Wool Boards today.

Mr Duncan said he based his estimate on the assumption that this season the average price would be 43 |d a lb. “In considering the run of wool prices this season, it should be realised that last season’s prices —averaging 54? d a lb and representing an increase of 181 per cent, on the previous season—were unexpected and exceptional,” he said. It seemed more appropriate to compare this season’s average with the average of 46Ad for the 1955-56 season. Indications were that this season’s average returns would be about 20$ per cent below last season’s, and 6 per cent, below the previous seasun. “To March 5 this season, 848.&00 bales of greasy wool have been sold at auction and privately, representing two-thirds of the expected total for the season, and the average price realised is about 45Jd a lb. The corresponding average price for sales to the same date last season was 54Jd a lb,’’ said Mr Duncan.

The estimated production of all wool—greasy,'slipe and scoured—for this season was 497 million lb, an increase of 11 per cent, on the last season.

Mr Duncan said the factors affecting wool prices this season might be summarised as: (1) Financial stringency and exchange difficulties in consumer countries

(2) Higher bank interest rates. (3) The impact of the trade recession, particularly in the United States and (4) World-wide economic difficulties.