U.S. JOURNAL PREDICTS MORE RISES IN WOOL

Press, Volume XCVIII, Issue 28930, 25 June 1959, Page 17

U.S. JOURNAL PREDICTS MORE RISES IN WOOL

(N.Z Press Association—Copyright)

NEW YORK. June 23. I Relatively low supply levels for ' wool throughout the world, combined with a continuing rise in consumption, could result in further sharp price advances for the fibre, the “Journal of Commerce” reported today. The New York, financial newspaper said prices of imported apparel type wool in the United States rose about 30 per cent, from a record low point reached in January this year to a seasonal high in late April. Since then, it said, wool prices dipped slightly, reflecting in part a seasonal lull, and had held steady about 22 per cent, above the January rate. The “Journal of Commerce” added: “Mills, however, will require considerably mqre wool for the balance of the year and any active buying revival would start prices moving up again. “One factor which might put the brake on any rapid price advance is competition from synthetics, or the threat of further inroads from synthetic fibres into markets served by wool.” The marked reduction in world wool stocks stemmed from the big revival in wool consumption in the United States and other countries which got under way in the last half of 1958, and gathered momentum this year. Risen Especially Fast “The journal said that wool used by mills in the United States had risen especially fast this year to date, with the United States Department of Agriculture reporting that mills used 89m lb of apparel wool (scoured basis) in the first four months —a rise of 22m lb or 32 per cent, above the volume used in the same months of 1958.

If this rate of mill consumption I of wool were maintained throughout the year, it said, it would re- I suit in more than 260 m lb of wool being used. The journal said that wool stocks in the Southern Hemisphere at the beginning of the 1958-1959 season totalled 352 m lb (greasy basis) compared with 160 m lb a year earlier. These stocks were reduced considerably, however, and "relatively limited supplies in relation to prospective consumption now appear available.” Heavy stocks which were overhanging the wool market in Argentina and Uruguay a year ago now were virtually all gone, and South Africa and New Zealand also liquidated a large volume of stocks this year. The journal said that some time between now and bctober, a resumption of forward buying was likely. It was considered likely that prices then would again move upward.