Marketing Of Wool

Press, Volume CIII, Issue 30633, 26 December 1964, Page 12

Marketing Of Wool

Sir, —Your report from Auckland says the reasons for the serious fall in wool prices are “the state of the economy in buying countries, a swing to synthetics, and wool bought at higher prices last season.” No doubt these are contributory reasons, but is it not fair to inquire whether the state of the economy in other countries has caused a drastic fall in the prices of other basic materials? Also, is the present method of offering about 50,000 bales of wool a week to probably reluctant buyers, a sensible one, and to what extent has “forward selling” affected the trend of prices recently? It is said that in recent months important overseas wool merchants have continued to offer to sell New Zealand wool at cheaper than the current prices in New Zealand but for delivery two or three months ahead, and that it is possible for them to do this because they know, with certainty, that any wool they sell will be “presented” to them in the sales. —Yours, etc., JASON. December 17, 1964. [When this letter was referred to him, the chairman of the Wool Board, Mr J. Acland, said that the special

study group set up by the board and the New Zealand Wool Commission would be looking into all these questions- It would hold its first real meeting in the New Year. The answers to these questions would not be obtained in a few days or a few weeks.] [Professor B. P. Philpott, professor of agricultural economics at Lincoln College, said that no doubt many of the points made by “Jason” had considerable validity, but the Wool Board and Wool Commission had set up a special committee to inquire into the whole question of wool marketing, including anomalies in the auction system, and among other things the committee would be examining aspects that the correspondent had raised.]