THE WOOL OUTLOOK

Evening Post, Volume 65, Issue 65, 17 March 1924, Page 6

THE WOOL OUTLOOK

GREAT SHORTAGE OF SUPPLY

STRONG DEMAND FOR CROSSBREDS.

(UNITED MESS ASSOCIATION.—COPYRIGHT.) U STRALIAN-NEW ZEALAND CABLE ASSOCIATION.) (Received 17th March, 8 a.m.) LONDON, 15th March. The opening of the colonial wool sales "i Tuesday is awaited with unusual interest. Traders generally anticipate a strong demand for. crossbreds at prices fully equal to those realised at the Liverpool sales, but the position regarding merinos is somewhat uncertain. Early '■» the week it was thought that the' slump m the franc would seriously affect trench competition, but the fratio's vapid recovery has altered the position, and it is now hoped that merinos mil at least maintain the last London sal« s values. i Thi position in the wool industry is well described in the "Journal" of" the Bradford Chamber of Commerce, which says that topmakers will not take the risk of -selling forward" beyond the limits of the raw material they have already bought, in view of the obvious danger of inadequate supplies later in tii,j year The main considerations affeoting their outlook may be summarised briefly. The reduced clip of Australian wool sold so Quickly in a rising market that the selling season will be concluded before the end of March. In I New Zealand-75 per cent, of the clip has already been sold. In South America practically the whole of the clip will have changed hands by the middle of March, and in South Africa the clip has been disposed of with, unusual rap- • idity. A large propcition of wool has been bought, direct by users in Europe and North America, and, in view of the fact that the last bales of Bawra wool will be sold in May, comparatively light of-. ferings are anticipated at the summer and autumn sales in Lon-don. in France there are complaints of inadequate arrivals' of crossbred wool,-, and in Germany there is improving trade, side by side with meagre supplies of raw material. Such factors naturally fuve to the raw material market a "b"ullish-"' tendency, and make topmakers and spinners also very cautious about selling for delivery in the later months of the year._ _ . It is difficult to estimate the extent to which Home trade has improved, but there has been more confidence in buyj.ing forward in yarns and fully manufactured goods, with a, clear preference for cheaper woollens. In some parts of the West Riding, notably Huddersfield and the Colne Valley, there has been more overtime, and some night work. The distribution of the new business is, however, very uneven, and there are many idle looms and a good deal of short time in the worsted manufacturing branch. Worsted spinners are better placed than worsted manufacturers, because of expanding trade in yarns tor the Continent.