THE WOOL MARKET

Dominion, Volume 32, Issue 72, 17 December 1938, Page 4 (Supplement)

THE WOOL MARKET

Outlook Fairly Favourable

With the first five sales of the sea you now held, from Auckland down to 3’imaru, the current level of wool values w now clearly established. But there are yet 21 more sales to be held during four more months. Interest, therefore, lies in the prospect of present values holding, or even perhaps appreciat-

ing. The one world “futures’ market for wool, that of Antwerp, provides a record of opinion in Europe. Quotations as cabled on the pate, of the- opening of- the season sale in New Zealand were 22Jd. for December, 23Jd. for March, and 23 3-Bd. for May. A year ago the respective quotations were 23 7-Bd., 23Jd., and 233 d. The high point of the past twelve months was seen last January, with 24Jd„ quoted for al) fates ahead. The low point was in September last, with 22|d. quoted. The general inference is for a firm market, with the possibility of a -slight rise. Bradford Top quotations have been miformly steady at 17d. for sO’s, right t>ack to August. But in November, 1937, they stood at 20d., declining to 18£d. last January. There is here a natural time lag in the decline of manufactured tops, as compared with raw wool. Over these past four months tops have been steady, with a slightly lowering tendency in finer grades. The November London wool series dosed firmly for crossbred wools, but •'lightly below opening rates for merino and half-bred. Medium crossbred, 44/4(>'s. sold at IOJd. lb., which is equivalent *<> Hid. at a New Zealand sale. Thus, for some six months or more London has been ahead of our results, and by a furl id. a lb. , . The series was a good spot market indication. as 104.000 bales were offered, ol Which 39,500 were New Zealand grown. Coming now to New Zealand s own

sales, a most pleasing feature is the wide spread of competition. The return of the United States of America to the market is welcome. In Australia, heavy purchasing by France has been a feature of this season. Other continental countries still show interest, but lheir restricted credit facilities are certainly curtailing their influence. "Artificial’' credit appears as great an enemy Io the wool-grower as is "artificial wool" *, indeed it is the father thereof. ' Taking the broad view, the genera) prospect for New Zealand wool for this selling season is that a firm continuance of present prices may be expected.