THE WOOL OUTLOOK

Dominion, Volume 29, Issue 93, 14 January 1936, Page 12

THE WOOL OUTLOOK

Consumption Seldom Larger

Strong evidence exists for the belief in the general soundness and healthy condition of the Textile industry, state H. Dawson, Sons, and Co., Ltd., writing at the close of the November-December London wool sales. The absorption of supplies proceeds at a record pace, and the stocks of tops or wool in the English combing mills are at a minimum level. ■

The raw, material occupies a wonderfully favoured position as ; compared with other basic commodities. The increasing requirement of Japan is one of its best assets; there are also some hopeful signs of U.S.A, interest in raw wool, although at present their operations have been confined almost entirely to South American and crossbred grades. It is, however, difficult to remain pessimistic for long because, excepting inferior sorts which usually feel the draught first, all grades are in strong demand, and the prospects indicate a continuance of the expanded consumption. As regards crossbreds, the London market has seldom seen more general and excited demand, the’ opening advance in the lower and medium grades being almost startling. It has to be remembered, however, that some of the poorer countries of Europe cannot afford to pay the present high values for merino sorts and arc taking the cheaper grades. The woollen section of the industry is sharing very largely in the general improvement. ' There is at the moment a shortage of hands in both sections, and manufacturers are needing more workpeople than' are available. Some of the largest mills in the Colne Valley and Leeds district are running overtime, and in some cases working night and day. Consequently, the shorter wools, especially in scoureds and carbonising merinos, and also in slipes of all grades, are finding a vastly improved demand. The Continental Terms markets have moved' irregularly during the past few weeks, but as these can be so largely manipulated by local political affairs they have not much influence on the market, although they have probably been following tiie slight weakness and irregularity which has materialised in inferior sorts. The wool supply for this year has been estimated to show an aggregate decrease in the principal producing countries in Australasia and South America of between 80 to 90 million lbs. or 4 per 'cent., as compared with the previous season, despite the increase of 30 million lbs. from the Cape. Tlie chief decreases are, of course, in Australia and South America. To sum up briefly, the outstanding facts are that consumption was seldom larger, and continues to keep pace with the supplies. The ladies’ dress goods, both in worsted and in fine woollens, is keeping many of our manufacturers supplied with orders almost beyond their capacity to .execute, although the worsted spinning section is finding it difficult to obtain prices adequate to the inherent strength of wool.

Dairy Produce Quiet

Joseph Nathan and Company Ltd. have received from their principals. Trengrou.se and Nathan Ltd., London, the following cabled advice, dated January 11: New Zealand butter, 95/-; New_Zealand clieew, white, 55/6; coloured, 59/6. Both markets very quiet. The Bank of New South Wales has received the following cabled advice from its London office, dated January 11: Butter, 96/-. Cheese: White. 56/-; coloured. 60/-.