Profit Shown On Stockpile Wool

Press, Volume CIX, Issue 31880, 7 January 1969, Page 1

Profit Shown On Stockpile Wool

(New Zealand Press Association) WELLINGTON, January 6. Sales of Wool Commission stockpile wool realised a gross total of $10,223,950 for the season to the end of December, the chairman of the commission (Mr E. L. Greensmith) said today.

A total of 102,391 bales has been sold. The original purchase cost was $9,919,646, and after the deduction of selling costs the net proceeds were $9,979,192.

Mr Greensmith said H that in making these , sales the commission > had exercised great ! ’ care. Reserves, determined by current mar- ■ ket prices, had been placed on all wool offered at auction. The commission had on oc-

casion passed wool rather than jeopardise the sale of new season’s wool. “We aim to dispose of stock j wool at auction over the next few years in an orderly way that will facilitate smooth absorption by the textile industry’ of both new season’s wool and the stock wool,” he said in a statement. Because there was an unusually slow rate of delivery of new season's wool to

brokers’ stores during October and November and the demand from buyers was strong, an original programme of selling 76,0001 bales of stock wool in New Zealand was enlarged and 98,692 bales were sold locally. In addition, 3699 bales were sold in London. “The enlarged programme was welcomed by buyers and had no discernible effect on the upward price movement that was then taking place,” said Mr Greensmith. “Operations to date appear to have been successful and the selling technique which has been developed was well tested.” The commission purchased 645,786 bales in the 1966-67 season and 60,351 bales in 1967-68, a total of 706,137 bales, costing $67,963,096.

By December 31, 1968, its stocks had been reduced to 584,151 bales, purchased for $57,317,513. Mr Greensmith said the commission had completed the initial programme of offerings for the 1968-69 season, determined in April, 1968, The matter of any further sales of stock wool was being kept under review. “Should it prove desirable, during the closing months of this season, to add to offerings at auction from growers, the buying and other industry interests will be advised through the Wool Auction Sales Committee, as was done last year, when, between March and May, 15,000 bales of stock wool were sold at New Zealand auctions,” he said. ’