WOOL PRICES

Press, Volume XCVIII, Issue 28869, 14 April 1959, Page 19

WOOL PRICES

‘Minor Boom Will Continue’

(N.Z. Press Association—Copyright) LONDON, April 13.

The “Financial Times’’ today forecast that the “minor boom’’ in the wool trade would continue.

The newspaper reviewed recent events in the trade and said that the April series of wool sales in Britain would undoubtedly get off to a strong start. “The excessive stocks of wool in one form or another, which have been the main cause of wool’s troubles over the last two years, and which were to be found in all consuming countries, have now been worked off, even in Belgium and France, where the position was worst,” it said. “This has brought with it an almost automatic recovery in wool textile activity, especially as retail business in wool products continues to be well maintained.” the newspaper added. Stimulus from ILS. “The trade everywhere has also received a tremendous stimulus from the United States, for the wool textile industry there has gone ahead at a rapid rate, and has stepped up its demand for raw wool supplies considerably. “With the end of the woolselling season close at hand, and then a break of several weeks before supplies again become available, there seems little doubt that wool prices will go on rising. “Certainly the upward trend now appears to be well established. even though the pace may not continue to be so fast as recently and the occasional setback is not inconceivable,” it said.

“As always, of course, it is important to get the position in perspective. The recent upswing only represents a minor boom. “Both wool prices and textile activity are still comparatively low; but, as the last month has shown, movements in wool are liable to gather momentum quickly, and there is every reason to suppose that the industry is now all set for further expansion.”