WOOL GROWING

Evening Post, Volume CVIII, Issue 63, 11 September 1924, Page 7

WOOL GROWING

•'YEAR OF WONDERFUL RESULTS."

■ ivlessrs. Dfilgcty and . Company's comprehensive "'Wool Review" for the, 1923----24 season . describes the twelve months ended'3oth June as "a year of wonderful results in the /face of many factors, all more- or less calculated to . disturb the even course of trade and depress -rather than inflate values." ;.. The factors that are'likely --to-depress" the wool market were continued occupation of the Ruhr, inactivity and lack o£ English trade, demoralised finances of Germany, the Japanese earthquake, and the aloofness-of American buying. "Yet not only was the high level of the previous season fully maintained-from the outset, but prices steadily and' consistency, rose until they reached a pinnacle and established records which are most gratifying- to tho producers of the raw material." . A SPECULATOR'S HARVEST^ , The explanation that is offered by Messrs. Dalgely and Co. is that tho world's -.consumption has overtaken production. The exhaustion of Bawra supplies ■ has been the keystone of the present position. "Despite the condition of affairs in Europe tho Continental demand dominated the market. France was enjoying great. prosperity, and its textile industry was able, through havingbeen re-established with modern machinery, to undersell Great Britain in her own markets. Belgium and Italy showed an improved position, and even Germany had big-wool credits. So the Con-! tmental demand forced up prices until other sections of tho market began Uo operate. The year provided a. speculator's harvest, especially with . erossbreds, for those who bought for resale came out with a substantial profit. Aftsr mentioning that the woolgrower would like to see the speculator. out pf\the market, the report expresses the opinion that it is quite ■•' legitimate for anyono .to buy wool'for resale, and that--.proceeding is not as objectionable as Continental gambling in wool "futures." \- .'■■•': Commenting upon tho fact that growers of'wool are called upon to wait for", fourteen days from the date of sale for their: cheques, Messrs. '/Dalgety point out that buyers, operating in Australia and New Zealand in the majority of instances buy for prompt-shipment, and ennnoc use their credits until the wool is on board tho vessel. In some cases shipping is not 'readily- available. Other buyers have to "place" the wool after buying- it, an ■operation that takes times. In addition, tho -."prompt" period of fourteen days, is the shortest term of a similar nature in any branch of the textile industry. Accordingly, it is held that tho ■ present period is indispensable to the sucecsstul conduct oC^tho h'ado.

THI<; PROSI'KCTS. ' ■Dealing- wii.li -Uio .-outlook the review

"Summing, up the facts and (igurcs wo arrive at ihe unassailable conclusion that tho wool position is fundamentally sound, 'l'ho, statistical position : is "indeed sounder than it has over been in the history ■ot the trade. Some recovery in production must result from improved pastoral conditions, but the world's production is not. likely to balance with trade requirements. .... Stocks of .wool in , hand are comparatively' light, arid likely., to be exhausted before the new Australian- clip comes'upon the. market. ' Consumption is steadily increasing, and the temporary checks to its expansion will bo gradually overcome. Accordingly given no international (:ouipliciition.-i, wool production, and especially merino wool production is Pilely to uuiiliuue a highly "profitable undertaking during Hie next, few years."