UNCERTAINTY IN WOOL MARKET

Press, Volume CIII, Issue 30603, 20 November 1964, Page 7

UNCERTAINTY IN WOOL MARKET

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

LONDON, November 18.

With the first half of the Commonwealth marketing season now at its height, wool values are undergoing the seasonal test of heavy offerings, says the “Yorkshire Post.”

In both Australia and New Zealand, where this week’s total offerings exceed 200,000 bales, a degree of irregularity has been noticed and Bradford top quotations take account of the fact. The weight of wool now coming forward coincides with the fact that the rate of consumption in some of the chief manufacturing countries leaves something to be desired, while stocks —sold but undelivered —are a problem in more than one quarter. This tends to curb the liquidity of assets necessary for a vigorous wool importing policy and, on this account alone, some firms may be buying less than they would otherwise wish. The trade and tariff discussions now taking place in continental Europe and the import surcharges lately an-

nounced by the United Kingdom Government both hint at a possible redistribution of the exchange of trade in wool products, and this makes for commercial uncertainty in more than one country. Yet another factor contributing to uncertainty is the known existence of fairly large stocks of wool in certain South American countries, at present withheld from the market. Against such a complex background, international commercial confidence in wool is proving difficult to establish, and United Kingdom importers find it possible to buy at rather less money. Over recent years, November has frequently presented some of the best wool-buying opportunities of the season, and there are those who believe it is doing so once again. Bradford top-makers are believed to be buying steadily for continuity of supply, but they would probably operate on larger scale if more encouragement were forthcoming from buyers of tops.