Uncertain On Floor Price

Press, Volume CVI, Issue 31363, 8 May 1967, Page 3

Uncertain On Floor Price

(By The London Correspondent of “The Press”)

LONDON, May 7. Reports from New Zealand that the Wool Commission will review its minimum floor price in June or July and a strong suggestion published by the “Financial Times” that it may lower the floor price by as much as 3d per lb are receiving a mixed reception in Bradford.

There is quite a conflict of opinion in the wool textile trade whether New Zealand should cut its floor price or not. Many feel that such a move in itself will not promote a bigger demand for the wool and the commission might still be forced to continue its purchases and stockpiling. There is a view in Bradford that the increase in New Zealand floor price at begin-

ning of this season was not fully warranted in all the conditions, but on the other hand a major decrease would devalue the big stocks held by the commission and also the stocks of anybody else who has been supporting the New Zealand market. UNDERCUTTING

Many wool men also feel that South American countries would continue to undercut the New Zealand floor price if it were lowered. “Some countries would devalue again tomorrow if they thought it would do them some good,” said one. Bradford is generally as perplexed as New Zealand about what might be the best solution to the country’s present wool dilemma.

One suggestion put forward is that the guaranteed overall average price should remain unaltered, but adjustments for prices of the specific types of wool which make up the average price should be made in such a way as to pr' <ote in the long term a batter style of wool, “not necessarily a finer wool but the best possible wool of its type.”