FINE WOOL PREMIUM

Press, Volume C, Issue 29620, 16 September 1961, Page 6

FINE WOOL PREMIUM

From 27d To 3d

How the premium for fine wools has virtually disappeared was illustrated by Mr Frank L. Ward, a field officer of the economic service of the Meat and Wool Boards, in a paper to the high country section of Federated Farmers at Blenheim. In 1948-49 and 1949-50 seasons wools of 60/64’s quality and finer averaged 25'zd to 27d a lb more than 46/50’s and 48’s. Since 1954-55 the margin has dropped to below lOd, being only I.Bld in 195556 and 3.4 d last season.

“Action by the Wool Commission has undoubtedly helped to delay the differential being reduced even further,” said Mr Ward, “but it is quite clear that there has been a re-assessment and that this will have to be accepted.

“It seems that the finer wool suffers more from competition with man-made fibres and that a ceiling has been placed on fine wool prices by the ability of the manufacturer to switch to man-made fibres when fine wool prices rise. There is also some competition from below in that if fine wool prices rise the manufacturer will make do with stronger wool bought at lower prices." In a further illustration of the narrowing of the price margin between finer and coarser wools, Mr Ward showed that whereas in 194950 the average price for 60/64’s was 182.9 per cent, of that for 46/50’s, the corresponding relationship last season was 108.9 per cent., and in 1955-56, 104.1 per cent.