Wool Prices Discussed

Press, Volume CIII, Issue 30471, 19 June 1964, Page 11

Wool Prices Discussed

LONDON, June 18.

Wide wool price movements this season were difficult to explain, Mr F. S. Arthur, London agent of the New Zealand Wool Commission, told the annual conference of the International Wool Textile Organisation in West Berlin.

Mr Arthur was discussing the marketing season from the New Zealand viewpoint. Light stocks and generally advancing commodity prices justified the rise which took place but, in retrospect, it seemed that the advance went too far, he said. Demand slackened due to price resistance, synthetic fibre substitution and antiinflation measures in certain

countries. But the 15 per cent fall in 10 weeks this year was exaggerated and led to a 5 per cent recovery in New Zealand wool.

The growing New Zealand practice of shearing three times in two seasons meant that second-shear wools now represented 15 per cent of the New Zealand clip: mostly marketed from March to June.

Without doubt the heavy proportion of this wool mar-

keted at Auckland on May 18 resulted in an exaggerated drop of 10 per cent in prices, which had a weakening effect on crossbred values generally. The undesirability of overloading the market with second-shear wools was fully realised. No present means existed for spreading this wool more evenly over the season, but the commission was giving the matter serious consideration.