702,938 Bales Of Unsold Wool Held

Press, Volume CVIII, Issue 31633, 20 March 1968, Page 1

702,938 Bales Of Unsold Wool Held

(New Zealand Press Association)

WELLINGTON, March 19.

The New Zealand Wool Commission had 702,938 bales of unsold wool in store in mid-March, the chairman (Mr E. L. Greensmith) told the electoral committee of the New Zealand Wool Board today.

He said that the wool comprised 645,786 bales from the 1966- season and 57,152 bales from the 1967- season.

The policy of not disposing of the 1966-1967 stock below cost, which was designed to strengthen confidence in the market for New Zealand wool and facilitate the flow of the new season’s clip to commercial buyers, had confined the commission’s activities on that stock to care and maintenance, he said.

“Some of the 1967-68 purchases, made early in the season, are being cautiously and profitably released. “While there appears to be no sign of the market being affected by concern about any large release of 1966-1967 stocks, it is appreciated that a statement of the commission's policy about this ought to be issued soon to avoid any market uncertainties that might develop. “The whole subject is under consideration and is being discussed with the Government.

“It can be relied upon, however, that the commission will continue to be a relatively firm holder.

“Its policy will be flexible and cautious and calculated to have as far as practicable the least depressive effect on growers’ prices,” said Mr Greensmith. Mr Greensmith said that the worst economic recession in wool-consuming countries since World War II had hit primary producers heavily. To cushion the industry against its effect, the commission perservered in buying wool for nearly a year and had since provided supplements to market prices where these prices had not reached the target average level of 25 cents.

“The outlook shows glim-

merings of improvement,” he said.

"Selling More” "The five major woolsupplying countries are selling rather more wool—4 per cent more in the first half of the 1967-1968 season—to commercial buyers. “In the United States, the consumption of carpet wool is increasing, after substantial decreases, and trade stocks appear low. “Belgium appears to be experiencing a modest improvement. The awaited and expected resumption of economic growth in West Germany is thought especially significant for wool textile industries,” said Mr Greensmith. “The world production rate for woollen yarns improved in the third quarter of 1967 by about 4 per cent “Recovery in domestic wool consumption in the United Kingdom, however, may be affected by the British Budget,” he said. Wool Not Alone

“Wool has not been alone in trouble. The production of cotton yarn and cloth, raw jute consumption, and hemp consumption have all shown substantial declines over the last year. Even man-made fibres had their difficulties in some important areas. “In the United States and the Common Market, output of rayon and acetate was appreciably less in 1967 than in 1966. Britain and Japan showed small rises,” said Mr Greensmith. Mr Greensmith said that shorter wools and their odd-

ments—particularly in the stronger qualities—had received below-average supplement, which reflected a strengthening of the market for these qualities since the beginning of the season. Up to and including the Wellington sale of March 13, the total cost of supplementation had been $7.21 million. Rather more than twothirds of the clip likely to be offered at auction during the 1967-68 season had been sold and it appeared that the total cost of supplementation foi the season would be about $lO million. Different Types “In selecting the stocl wool to be offered care was taken to bring out types not normally available at this par ticular time of the year. This avoided conflict with growers current offerings and suites the needs of some buyers. “The result can be re garded as very satisfactory although it must be empha sised that only fine wools were involved and these re present a modest proportion of the commission’s total stockholding. Provided market prices for fine wools remain around current levels, it is intended to sell before the end of this season sev eral more thousands of bales of wool purchased this season . . .”

Mr Greensmith said that after devaluation wool prices should have risen 25 per cent, but only some fine wools did, the stronger wools gaining only 10 per cent.