‘Consumption of wool may improve next year’

Press, Volume CXIV, Issue 33694, 18 November 1974, Page 7

‘Consumption of wool may improve next year’

(N.Z.P. A.'Reuter —Copyright) WASHINGTON, Consumption of raw wool and woo! textiles may improve slightly next year, the outlook and situation board of the United States Department of Agriculture believes. In its latest review of international farm trade trends, the board says that this improvement will take place if wool prices remain stable and if inflation and interest rates ease as expected. “Wool will continue to have strong competition

from synthetics. However, the inroads seen in previous years are not expected to be so dramatic in the future because of higher prices and lower supplies of these fibres.” The board says that United States imports of raw wool were the lowest on record last year and

some declined even further so far this year. “This year, apparel wool and carpet wools have: dropped 50 and 63 per cent,: respectively, from the same period a year earlier. “Conversely, lower wool prices here than abroad dur-j ing the first half of 1974' surged exports of raw wool to about two and a half times depressed JanuaryJune 1973 levels. Wearing apparel, blankets, and carpet and rug exports are up this year also. “Exports of wool textiles are down slightly, reflecting substantially-reduced shipments of wool tops to Japan. “Raw wool prices on world markets are down about 35 per cent from last year, and prospects are little better for next year. “This fall again points to a smaller domestic wool supply, but holds out some prospects for an improvement in demand for wool in 1975.” The board says that the decline in United States raw

wool production will most likely continue through 1975. “Texas, the nation's leading wool-producing state, may ( have a clip about two and al half million lb less than last year. Wyoming, the second largest producer, may have about three quarters of a million lb less. “The outlook for 1975 is for a continued decline in sheep numbers. However, if wool prices continue in the 60 to 65 cent range producers may take steps to: rebuild flocks.” The board says that lamb and mutton production was down in the United States * by 9 per cent in the first nine months of this year.