Hopes for improved wool market

Press, Volume CXI, Issue 32676, 4 August 1971, Page 15

Hopes for improved wool market

(N.Z. Press Association) WELLINGTON, 1 August 3. There was a “ray of hope” that the world wool price could return to better times—but the recovery would be slow, an Australian Wool Board member said in Wellington.

Mr A. R. Begg said there were signs that the worldwide recession would gradually imnrove. Processing ind ntrv leaders had told him. that their order books w’te beeinrl-’g to fill, and that sn’es inouiries were increasin'? “Th'-ir main worrv is wa»e r-'-fs.” Mr Bee’ said. “In| T-'iv alone, wares h"”e ri'cn t' n»r cent in two vears. But: »-«re are sirr>« these are now *jv”ed down.” ■ Mg Begg said another rea-

son for an increase in prices was the improving United States markets.

The United States had previously required 400 m lb of clean wool a year, but this had dropped drastically in recent years. There were now signs that

the Americans were coming out of their. recession. But the huge 25c per lb tariff on wool, except carpet wools, was still a major obstacle. Australia was in a worse situation than most woolproducing countries, Mr Begg said. The effects of a long drought and world-wide inflation had forced woolgrowers to ask the Government for a subsidy to raise the average selling price return to 40c per lb. At this stage the Government was not making its jintentions known, but rumour had it that the new reItum would be 36c—an inI crease of 6c, Mr Beggs said.