ABUNDANCE OF WOOL

Press, Volume CIII, Issue 30562, 3 October 1964, Page 13

ABUNDANCE OF WOOL

(Special Correspondent H.Z.P.A.)

LONDON, October 2.

The principal restraining factor on wool prices at the moment is the world-wide abundance of the commodity, says the “Financial Times.”

A provisional estimate from the Commonwealth Economic Committee places production in 1964- ■ 65 at 5840 million lb, a 1 per cent increase over last season. With the exception of the United States where output may be 6 peer cent lower at

270 million lb, and South Africa, where a cold spell could reduce supplied by 2) per cent to 320 million lb. higher production.is expected in all the major wool growing countries. In Australia output may exceed 1800 million lb for the first time, being 2 per cent above the 1782 million lb of 1963-64. New Zealand should recover from last season’s cutback to exceed the 620 million lb reached in 1962-63. Argentina has been placed with 415 million lb of wool, a 1 per cent gain, Uruguay should expand by 3 per cent to 198 million lb and even the United Kingdom anticipates a better season than last year with a clip of perhaps 133 million lb. There is tempered optimism at the auctions,, with the belief that the growing prosperity of the main wool-con-suming nations should absorb the- additional wool, the “Financial Times” continues. There is also confidence that the £6sm publicity campaign, under the symbol woolmark launched this month by the International Wool Secretariat will meet the competitive campaigns of the synthetics industry.

i In Bradford, however, the 1 trade in wooltops is very 1 slack, and this week the offi- . ciaily quoted price for woolI tops 64’s was lowered from ; 121 d to 118 d per lb. In fact, prices are a few pence below - this, though spinners are res ported now to be putting out t feelers, and might soon buy 1 some tops. 1 The very real threat from - synthetics makes the success i of the woolmark campaign even more vital for the wool I producers. By stressing the , quality aspects of wool they ’ may well check the challenge t and retain a steady share of • an expanding textiles market, i The confident opening of • the auctions in the southern - hemisphere suggests that there is still a great deal of - optimism over the prospects ■ of the commodity.