Devaluation Effect Reaching Wool

Press, Volume CVII, Issue 31542, 2 December 1967, Page 1

Devaluation Effect Reaching Wool

(New Zealand Press Agsociation)

WELLINGTON, December 1.

The full effect of devaluation was now being felt by the wool market, the chairman of the Wool Commission (Mr E. L. Greensmith) said today.

“There is probably a certain amount of extra pressure on buyers to fulfil contracts. This is stimulating the market,” he said, referring to the Dunedin sale today.

“In general the price level appears to be about 10 per cent above the level before devaluation. This of course means that for the first time there will be a substantial increase in foreign exchange earnings.”

Mr Greensmith said the average price for the sale appeared to be about 26 cents.

This meant the commission would not have to make any appreciable supplementary payments.

Mr Greensmith said there was absolutely no foundation to reports that the commission was about to release some of its stockpile of 700,000 bales. “As a result of these statements some of the buyers appear quite jittery over the commission’s intentions,” he said. Stockpile Position "They perhaps think that we are to become weak-kneed

over the stockpile and release it to their detriment. “I want to repeat, as I have done often since we announced the decrease in the floor price on July 5, that we have no intention of doing anything about the stockpile without keeping the trade fully informed. “We have not had any discussions on the stockpile, nor do we have any in progress at the moment

“When we are ready—end on present prices we will want to wait a while yet— we will advise the buyers well in advance.” (Dunedin Sale, Baek Page)