WOOL MARKET

Evening Post, Volume CXI, Issue 151, 29 June 1931, Page 12

WOOL MARKET

A BETTER SPIRIT

FALL IN PRICES STOPPED

(Received 29th June, 9 a.m.)

LONDON, 23th June.

Mr.'W.' P. Devereux, 'representative in England" brtTie 'Australian' Wool Growers' Association, _ reports that, largely as the respit of Mr. Hoover's war debt 4 payjnent. proposals, .a • better spirit has prevailed in most of the wool centres during the past week. Feelings of gloom and depression have been replaced by cheerfulness and hope. The decisions of the Empire Wool Conference, which sat in Melbourne last week are also favourably received.

The continued fall'in prices appears to have definitely stopped. Values of raw wool and tops have improved. Whilst in regard to the ' near future there are possibilities of some, expansion in international trade, signs of which- now exist, nevertheless it is realised that an improvement in world conditions cannot be brought about suddenly, and wisdom and "patience will be required to bring about a permanent recovery. The continuance of the strike of woollen operatives in France and the financial difficulties in Germany are responsible for the steadying influences at the present time, having the effect of checking undue speculation. The opening of the London July series of sales on Tuesday, 7th July, is awaited with interest as affording a real test of the position of wool.

Messrs. Jacomb, Hoare, and Co., London, writing 15th May, regarded the statistical position of merinos as sound. In crossbreds the position is considered in Borne quarters not so sound, for the reason that a fairly large weight of New Zealand wools is yet /Unsold, as compared with a normal year at this date, and business has been less active in-these than in merinos. Yet it must be remembered that at least eight months must pass before any new clip wools from New Zealand are able to reach. Europe, and that the South American clip, as the Australian and South African, is already sold. 'It is probable, therefore, that the crossbred position is not really so much less sound than the merino. Furthermore, it must be noted that in the woollen trade, though perhaps outputs are a good deal below normal, substitutes have given way to the virgin product to a great extent, and this seems confirmed by the comparative strength of clothing crossbreds. Thus statistically wool, whether merino or'crossbred} seems to stand well, and few users the firm imagines would care to be'without stocks, particularly in view of the inexpensivehess of the raw product. The doubtful factor is the continuing depression in trade generally. Time, however, is an important factor, and it is already many, months since the real severity of the depression began to make itself felt.

The carry-over of New, Zealand wool in New Zealand has been officially estimated at not more than 18,000 bales.