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Wool prices unlikely to go higher

It is unlikely that prices will rise significantly above current levels when the new wool selling season starts next month, according to the chairman of the Wool Board, Mr J. Clarke.

Speaking in Wellington after his return from Europe where he attended meetings of the board of the International Wool Secretariat and the International Wool Textile Organisation, Mr Clarke said, however, he was confident there would be good demand from a number of northern hemisphere countries.

“Personally, I’m optimistic that the greater part of the new season’s clip will be cleared at satisfactory prices,” he said. “However, the United Kingdom, traditionally our largest customer, is suffering a very serious recession and wool consumption has dropped quite markedly. I don’t see much prospect of an improvement there because with the pound sterling so strong it makes it extremely difficult for manufacturers to export. One or two other countries are in a similar state.

“But on the other side of the coin, in Western Europe the German economy is strong and Italy is consuming wool at a fairly high level,” Mr Clarke said

“The Communist bloc is an extremely important outlet for us and is buying ever increasing . quantities, while Japan is settling down to be a reliable buyer and is tending to increase carpet wool consumption.” He said that for the coming year economists predicted inernational trade would be depressed, which would affect the wool market to some extent — “but that’s exactly the same view taken 12

months ago, and since then growers have experienced a very good season.” The season just ended was a good one for the woolgrower, in spite of the downward slide in prices over the last three months. The season’s aver-

age price of 264 c per kg, greasy, was nearly s>jc above last season’s average. A record clip of 353,000 tonnes (10 per cent up on last season and nearly 20,000 tonnes greater than the previous best in 197071) was reflected ; in an upsurge in the amount of wool coming forward for auction. This season it is estimated that 1,634,385 bales were sold at auction compared with 1,322,439 last year. The Wool Board’s commercial division group manager, Mr Alex Patterson, says the season was “generally satisfactory.” “At the beginning of the season last August it was predicted that' the market would readjust downward from the start of the New Year,” he said. “As it turned out, this didn’t happen until after Easter.” The Wool Board bought steadily during the • last quarter of the season, lifting its stocks from, a low of 18,000 bales in March to a current 120,000 bales.

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/CHP19800711.2.101.2

Bibliographic details

Press, 11 July 1980, Page 14

Word Count
441

Wool prices unlikely to go higher Press, 11 July 1980, Page 14

Wool prices unlikely to go higher Press, 11 July 1980, Page 14