RECOVERY IN WOOL

Press, Volume CXII, Issue 33062, 1 November 1972, Page 19

RECOVERY IN WOOL

Firm prices expected

(N.Z. Press Association)

AUCKLAND, October 30. A substantial decline in wool prices was most unlikely, according to the chairman of E. Lichtenstein and Company, Ltd (Mr E. Lichtenstein). He told shareholders at the annual meeting that in terms of relative money value wool, at the current price, was at a much more realistic level than for a number of years.

However, prices had advanced too quickly and some readjustment would inevitably take place, he said. The fact that the current season’s clips from all the wool-producing countries would be lower than last year and the virtual disappearance of stockpiles of Australia. New Zealand and South Africa must have a bullish effect on prices in the foreseeable future.

The inflationary trend evident in all other goods and services had not, until now, been reflected in wool prices. Certainly there would be consumer resistance to highpriced woollen goods, but this was a normal reaction. In time the consumer would accept the inevitable, Mr Lichtenstein said.