WOOL POSITION CHANGES

Dominion, Volume 31, Issue 104, 27 January 1938, Page 12

WOOL POSITION CHANGES

Production And Consumption IVinchconibe Carson, Ltd., Sydney, in their latest report, state that if consumption were normal wool would be worth more money than it is at present. It was estimated that the current season’s clip of Australia, South Africa, New- Zealand and South America, plus carry-over at June 30 last, would be the equivalent of 7,246,000 bales of Australian .weight, a slightlv larger total than a year before. Our Port Elizabeth correspondents inform us that the African clip is now estimated to show a decrease of about 20 per cent., or 168,000 bales on the preceding 12 months. As a result the quantity available from the five countries mentioned is likely to be in the vicinity of 143,000 bales less than last season. In addition, the supplies of wool anjl tops on hand in Great Britain, on the Continent, and in the United States were smaller at June 30, 1937, than at the similar date of 1936. Unfortunately, the quantity of the raw material used in America has receded to a marked extent, and less has also been used in the United Kingdom. In addition, Japan’s purchasing has been restricted. Stocks of wool are certainly not large in consuming countries at present, but they are greater in some producing countries than at this time last year, owing to the smaller supplies offered during the past half-year. Actually, the grower holds the wool, whereas normally it is held by the manufacturer or merchant abroad. The very strong statistical position of last June has, therefore, partially disappeared, owing to the reduced consumption. Improvement, more or less permanent, in wool prices unquestionably depends upon more sustained buying by Japan, and a turn for the better in mill and general industrial activity in the United States. The spurts and lulls experienced in recent months do not justify expressing a definite opinion regarding the probability or improbability of a favourable alteration in the Japanese or American outlook. A brightening in that regard would have good general effects, in addition to the wool which might be bought for the two countries- quoted. It would produce greater confidence among wool consumers .everywhere. The December experience of 'improved prices gives an indication of the brightening in trade winch would occur in England if users felt assured that nil consuming countries would buy wool freely. Wool market, strength , at that time caused a spurt in sales of tops, yarns and fabrics, both on internal and export account. Business has been “marking time’’ for months, awaiting more definite stability in prices. Gold Mining Returns The secretaries of the Okarito Five Mile Beach Gold Dredging Company, Ltd., report a washup of 2toz. IGdwt. for 1.28 hours' dredging.