RISE IN WOOL PRICES

Press, Volume XCVIII, Issue 28866, 10 April 1959, Page 15

RISE IN WOOL PRICES

Speculation On Causes iN.Z Press Association— Uopunaht • SYDNEY. April 9. Wool trade authorities were at a loss to explain the reason for this week’s sudden rise in wool prices. The “increased activity” in trade in Britain and the Continent, as evidenced in the British budget, the war scare over Berlin and IraAind the strong trend of woolfutures trading in London were all advanced as reasons for the price increase.

One broker summed it up by saying “I don’t know why the increase has occurred, but we have been waiting for it and this is it.” The president of the grazier’s federal council. Mr G. W. Mcllroy, said that increased wool prices should “certainly not be reflected” in market prices for woollen goods. “Australian consumers have yet to benefit from low wool prices which have prevailed since October. 1957.” he said.

Consumers “deserved and ; expected” to be able to buy wool i at a more reasonable price than j it was available in the shops i today, Mr Mcllroy added. “Consumers cannot understand! why a suit length containing just l over two pounds of clean wool should cost more than £7 when the wool grower is receiving less than £1 for the greasy wool,” Mr Mcllroy continued. “They cannot understand why imported men’s suitings are available at 45s a yard, while comparable cloth from local mills costs 68s a yard. There has been some reduction in the price of imported cloths following reduced wool prices—for example, one cloth fell from 31s 6d to 27s a yard sterling on the Australian market. “No such reduction has been noticed in the prices of Australian woollen cloths.” South African Comment The wool slump was over, according to authoritative South African observers, quoted in a message from Pretoria Recovery of this sensitive barometer of economic activity confirmed the impression gained from the British Budget that recession in international trade was coming to an end, the observers said. Not only had wool prices at South African sales risen in recent weeks, but the South African Wool Board also expected the Wool Commission to dispose of most of its stocks bought up since the wool stabilisation scheme came into operation on March 5 this year. The scheme was introduced to protect farmers against falling prices and the commission bought 133.00 U bales. Twenty-five thousand of these had been sold “at a icasonable profit.” the board’s chairman. Dr. Jan Moolman. said. I At the Pori Elizabeth sale yester- ' day competition was keen and prices ilO per cent, higher than at the previous sale. All the wool offered was sold.