AUSTRALIAN WOOL

Ellesmere Guardian, Volume LVI, Issue 88, 19 November 1935, Page 3

AUSTRALIAN WOOL

SEASON'S CLIP SMALLER,

BRIGHT MARKET OUTLOOK,

A substantial reduction in the offerings of Australian wool during the current season is predicted in the monthly review of Messrs H. Byron Moore, Day and Journeaux. In addition to 24,000 bales, representing almost 1 per cent, of Australia's total clip, destroyed in the recent fire at Goldsbrough-Mort's Sydney store, a reduced production of at least 267,000 bales is estimated. Added to these, there is a decrease of 128,000 bales in the carry-over from last season compared with that from 1933-31. Very high prices are not desired, states the review. Producers do not want to see values which will encourage substitutes and sellers do not want sudden lifts and an ultimate reaction which will find them loaded with high-priced stocks. Present levels, however, should hold. The initial improvement did not continue beyond the first sale, but prices, which became variable at subsequent [auctions, tended to stabilise at a j shade below the opening prices. This has been particularly evident in London. The average' price for greasy wool realised over all centres in Australia during September was 12.27 d per lb., compared with 8.79 din September, 1934.

Japan's wool consumption has trebled in 20 years and nearly doubled in 10 years. A Japanese

estimate is that 1,250,000 bales will be used 10 years hence. Japan is under-quoting England for tops for export to the Continent. United States consumption of wool, under the impetus of returning industrial activity, has increased. This may result in increased buying orders from that country. Certainly it seems probable that Australian millmen will buy more than the record 300,000 bales taken last season. The fact that military clothing is made chiefly from crossbred wool, prices of which remain relatively cheap, is evidence that there is no shortage of that particular class. The outlook remains full of promise. The statistical position is satisfactory,

with the possibility of revised esti-

mates showing an even greater shrinkage in the total Australian clip—with the fire loss still to be added. World demand is good and there are no heavy stocks in millmen's hands. Altogether, the continuance of present satisfactory prices seems assured.