THE WOOL MARKET

Dominion, Volume 32, Issue 100, 21 January 1939, Page 4 (Supplement)

THE WOOL MARKET

Two-thirds Of Clip Yet

To Be Sold

The prospects for the remainder of this season are still of very real interest to woolgrowers, as only nine sales have been held to date of 12(3 listed for the season, leaving 17 sales to go. About two-thirds of this season s wool has yet to be sold. January’s opening sales nave seen keen competition for wool, but values have been slightly easier than those of Decem-

ber. The actual movement was very slight, comparing Wellington averages as published officially for the two sales, the general declinq being, only Id. or 2j per cent. ' ~ , The December wool, over all. averaged 101-Bd. lb. It would appear that January wool will average 9 7-8(1. lb. For ordinary reckoning it may be considered that typical crossbred wool is worth lOd. lb That price is a full ifd. a lb. down on the Wellington sale of January, 1938, which was, however, a rather good one for that season. Prospects Ahead. Overseas indications show a lowering trend. For example, the London series which opened on January 17 recorded all-round declines of id. on fine wools and Rl. on crossbreds. To some extent a decline was to be expected, as “spot” wools in London, on a bare market, as in September and November, are usually worth a premium. At this latest series typical crossbred has opened at lOd. lb. In actual net return to grower, local selling would have to see wool make 10|d. a lb. to equal that London price. In consideration of that position, New Zealand-bought wool is very cheap. The Bradford top quotes for 50’s, which .are nearest to our wools that receive regular quotation, have remained steady for a full six months past. Antwerp futures have remained very steady gince August last. They are now, indeed, gt a level quoted nine months ago. A possible highly favourable, influence upon wool as a world commodity is the Anglo-American trade treaty. An Australian pastoral firm, commenting upon this, stated: “An increase in consumption of wool in made-up goods in the United States of America of one pound a head would be equivalent to nearly 300,000 bales of greasy wool (presumably merino). And that increase should not be beyond the bounds of expectation.”

Though this prospect may apply more particularly to merino, it nevertheless interests all wool-producers, .for unquestionably crossbred wool is today being dragged down Jiy low-priced fine wools. Any rise in those is to be welcomed.

Viewing all indications at present seen, it appears that our wool will hold present values, with little possibility o£ either a fall or a rise during the remaining months of this season.