THE WOOL MARKET

Cromwell Argus, 28 November 1927, Page 5

THE WOOL MARKET

An interesting- review of the Wool Markets of the wojld, and a forecast for the future has been compiled bv Messrs Dalgrety and Co. ["hanks to the courtesy of the company's local rep., Mr T. P. O'Connor, we have been supplied with a copy. The following are extracts therefrom, while further extracts are comaineu in another column. The London sales throughout the year have been remarkablv steady, with a slight upward tendency for finc wools. Crossbreds for practically twelve months showed little change, but in September a definite advance of 5 to /i per cent took place. This brings London \alues very much on a par with the closingrates in New Zealand last season, with halfbreds probably slightly dearer. The absence of violent fluctuations during a comparatively long period has given buyers confi dence in the future stability of prices! and at the present time there is a buoyancy in the market which, in our opinion, promises the maintenance, of prices at least at the March rates of last season. I«i, Australia, prices so far this season show a fairly general advance of about 5 per cent. Fashion still favors the fine-wool fabrics, and halfbreds and merinos arc relatively dearer than crossbreds. We think, however/■'■■■'•there are definite signs of a revival of interest in coarse and medium crossbreds, and some slight . improvement may be looked for A Bradford writer said recently

that the wof'lcl was now nearer the sheep's back than for many years. Stocks of rawf wool are nowhere heavy, and the avidity with which last year's record clip was absorbed, in spite of adverse conditions in many countries, discloses a real hunger for wool. As far, however, .as ffie United Kingdom is concerned •—and she is, of course, our best customer —manufacturers have had a I continual struggle to pass on the increased cost of the raw, material, and trade has by no means responded to the vitality of the wool market. Conditions are different en the Continent, where conversion costs are lower; and the competition from ! foreign countries in what have previ iously been regarded as essentially British markets, is a very serious obstacle to expansion of trade in Yorkshire. While the future of wool prices, as far as the wool-grow-er is concerned, seems to be def initely assured at a payable level. we think that any tendency for prices to rise' much higher without a corresponding improvement in industrial activity, will be fiercely resisted by British users. The slump of 1Q25 and the subsequent depression taught plainly the dangers of high prices and the folly of being carried away by the statistical strength of the raw-material position. If available machinery were fullv employed throughout Hie world there would probably be a very serious shortage of wool and there would be'"' some justification for a substantial rise in prices, but am pronounced increase at the present stage would' prove a hindrance to trade and lesult in a definite check to consumption. The use of artificial substitutes has not had the detrimental effect on wool prices which, w;\s a,l pne time expected- To. some extent, particularly in the case of artificial silk, the "binding of the artificial fibre had assisted the consumption of wool in that many beautiful and novel effects have been introduced. It is. certain, however, that the higher; wool prices go the greater will be the. use of artificial substitutes, ancj. with a practically in exhaustible supply of raw materia!, this will certainly prove an effective check to dear wool, The world's annual output of artificial silk yarn to-day is estimated to be in the region of 200,000,000 lb. It is only in the last few years that this industry has grown to such importance," and it is obvious from the above figures that the use of such an enormous quantity of a comparatively new fibre must have a steadving- effect on the price of wool in the future, and, according to u Bradford manufacturer., has in tinpast contributed largely tp the recent falj m wpp} prices, Until sorne reduction is made- in manufacturing: costs we cannot see any likelihood of a very much higher level of prices ; in fact, the opinion is. freely held at Home that prices of raw wool are still too high com- j pared with the manufactured and j semi-manufactured article, and, tin- I less there is an improvement »n | trade, the possibility of present values being maintained is consider- i ed doubtful when, regular supplies of j new-clip wool are available. Th..> j general opinion we come to, however, is that the demand from the j ('ontinental section will be suffi- j cicntly kcet} to keep prices at a level equal to the March rates of j last season. and we think most growers w ilj p.e satisfied if the future of wppl prices is assured at ] what was then considered a good payable basis. It is gratifying to notice an increase in the Dominion's flocks of. 357*038 sheep, of which, from a view, the most pleasing feature is the fact that Otago and Southland contributed quite 7.5' per cent. This should result in a good deal more wool coming to auction, and, with the excellent ' winter generallv experienced,, the 'flip. sVpuld 'be a splendid pip:', arid although rather heavier- i\\ cpud'thm, from 'the point of view of growth and style, quite up to the excellent standard set last season, Many of the older residents who j remember ihe \iv,\, |\ Tait, forme!- j !ly P-iespv ievian Minister in Croniwell, will welcome the opportunity ', of meeting Mrs 'Tait at the Presbyterian church hall next Thursday ! week. Mis Tail litis represented the: j Cromwell I',. 'W- M> "U. at the con- j fer'encQ at Christchurch. and will • speak of the work done thc*.p, A missionary nla,.y by i_he girls, and j otho.i i r e.fvts itiid supper will be in- ; teresting' to th\p younger ones, j Presbyterian' Clmr-ph Services for next S'lo.id.iiy are its' follows: —Cromwell 11 apd ■/, Cowbmn 3. —Rev. a. R. Chishuhn,