N.Z. Wool Cheque ‘Likely To Fall’

Press, Volume CIV, Issue 30760, 26 May 1965, Page 17

N.Z. Wool Cheque ‘Likely To Fall’

GVZ. Press Association—Copyright)

LONDON, May 24.

There was likely to be a fall of £30,000,000 in the cheque for New Zealand wool in the season to next June 17, the London agent of the New Zealand Wool Commission, Mr F. S. Arthur, said today.

Mr Arthur, speaking at an International Wool Textile Organisation meeting, said there could be little doubt that the steep rise in prices up to March last year resulted in a market switch to the use of synthetics. Deflationary policies in several important wool consuming countries brought about a sharp reduction in machinery activity and in imports of wool, and a factor affecting demand for New Zealand crossbred wool particularly was the sharp reduction in

the use of this wool for hand knitting and heavy knit sweaters.

During the 12 months from March, 1964, Merinos had fallen 25 per cent and medium crossbreds 29 per cent. From the opening of the season in October until the low point in March, they had fallen 14 per cent and 18 per cent respectively. It was impossible to assess the extent to which the demand for New Zealand crossbred wool, and the price obtained, were influenced by the considerable hold-up of supplies from Argentina and Uruguay while exporters awaited a more favourable rate of exchange, Mr Arthur said.