Coarse wool demand drops

Press, 9 June 1982, Page 10

Coarse wool demand drops

NZPA London The main feature of the New Zealand wool market this season has been the significant drop in demand for coarse crossbred wool. International Wool Textiles Organisation delegates have been told at their annual meeting in Venice, Italy. The chairman of the Wool Board, Mr D. J. Mcllraith, said that within this group — 32 micron diameter and coarser — the price drop had been heaviest on poorer styled second-shear wools of 50mm (2in) and less in length. The board had “ended up" with a lot of these wools in stock. "To some extent these short wools are a reflection of adverse growing conditions, but the board has drawn to the attention of

growers the need to avoid, where possible, the presentation of very short wool for sale.” he said. By the end of April the board had bid on 28 per cent of auction offerings and had bought 11 per cent. Stocks at the start of the season had amounted to 345,000 bales. Board purchases had totalled 179,000 bales and. with sales to commercial exporters of 97,000 bales, stocks had stood at 427,000 at the end of April. The sluggish world economy had had a marked effect on wool demand and price, Mr Mcllraith said. Coming at a time of a big increase in New Zealand wool production this had led to much market activity by the board, which would employ the same flexible policy next season. It had the cash to support its activities.