BRIGHTER WOOL PROSPECTS

Evening Post, Volume CXI, Issue 68, 21 March 1931, Page 8

BRIGHTER WOOL PROSPECTS

Signs of improvement in the wool market were discernible as far back as the close of the London sales; early last month. Those signs have since been confirmed by results of Australian sales and sales held in the South Island of this Dominion, but emphatically endorsed by the Wellington sale held yesterday. There seems every likelihood now of the improvement in the wool situation continuing at the coming Wanganui and Auckland sales, lo the great benefit of the Dominion as n whole, but directly to the woolgrower himself. The high rate of exchange. or rathrr llie high price of money in London required lo meet Australian and New Zealand payments there, lias had an important bearing on the improved situation. Wool has been and ia being bought in tlic

Dominion lo be turned into cash on realisation in the centre where cash is wanted. But allowing for all this, it does seem as if the price of wool is now definitely on the up grade because of a stronger demand for the raw material for legitimate manufacturing purposes, and that demand has unquestionably been stimulated by the low prices (hat have ruled for wool over a period far too long for the good of llie growing side of the industry. The next ■London sales will be held at the end of April, and it is hoped thai current rains will then not only be maintained but exceeded. Meanwhile it appears lo be reasonable. that growers should continue meeting the market. Holding back wool for hichcr prices is, no doubt, a sound businesslike policy in ordinary circumstances, but present circumstances of the Dominion are far from ordinary. Besides, the existence of any large quantity of unsold wool casts a deep shadow over the market, depressing values for the grower whose necessities compel him to sell at whatever prices may be foing. It is a consummation greatly to be hoped for that by the end of June there shall not be an unsold bale of wool held in New Zealand. The matter largely rests with growers themselves.