WOOL MARKET

Evening Post, Volume CXV, Issue 38, 15 February 1933, Page 12

WOOL MARKET

MID-YEAR OUTLOOK

| .About the middle of last year, when Europe agreed about reparations, the wool market improved. Will it have a [simuar mid-year improvemnt in ,1933, as a result of the financial world conference' ,Tlu_ question—though it hardly- affects that big portion of the season's wool already sold—is raised- by Messrs. Winchcombe, Carson, Ltd., Sydney, who report (February ;8). that dull: conditions in the wool market "will sooner or later change, and possibly very suddenly. A quick alteration in the trading outlook was seen last mid-year, when agrement was reached in respect to European, reparations. The trading world felt that a definite revival in markets was imminent. Continental consumers who were diffident wool purchasers quickly become eager seekers of supplies. They, are the chief buyers of local feUmongered wools/prices for which had been extremely depressed. In a few weeks, values for those lines rose 25 per cent. We feel that if the discussions at the British-American war debt conference are successful, a similar, but more, permanent, revival will be;seen,.,as it was at mid-1932. Meantime, we do not expect to see any,marked variation in rates. Over two-thirds of the season's Australian clip has already been sold. London has sold wool more freely than a year ago, and lighter stocks in" that quarter should assist the Selling position." Referring to the immediate position, the report states that "though prices have not risen further, an excellent volume of ■buying orders.has been consistently experienced for the staple? The" woollen "iridus^ try has1 an uphill struggle under existing economic conditions to keep'prices moving forward. Goods apparently .:,cari*7 be sold, as the world's large clip has -'passedinto consumption during tiie years of depression. But ready .ales, of fabrics and hosiery, goods have only, 'been. I:;,'effected within certain price limits. Competition .for. business iel keen, particularly in the export trade.. Under better conditions the. manufacturer is; able: to" definitely calculate that raw material and manufacturing cost Him a certain figure^ so .much is required to show- a moderate profit, and bases; his' selling rates accordingly. 'All millmen then take practically tli'e _ame viewpoint and a measure of agreement is maintained in prices though they may be moving upward. Under ruling -circumstances the situation of millmen is not so satisfactory.; Buyers are not tumbling over each other'to secure goods. They keenly, seek the,seller quoting the lowesi figure. Vohuhe of. trade is maintained^ but it is very difficult to get the_ advanced prices warranted by the rising price of wool. That is the major check on. advancing values, and it starts in the shops where purchasers all look for cheapness." . ■