WORLD'S WOOL

Evening Post, Volume CXV, Issue 130, 5 June 1933, Page 7

WORLD'S WOOL

SITUATION SUEVEYED

PRODUCTION MAINTAINED

The world's wool production is being maintained at a volume not far below the record level of the years 1928 and 1929, despite five years of low prices, remarks a report just issued by . the Empire Marketing Board. . The Southern Hemisphere countries, as a whole, have not yet reduced their - dutput, although smaller sheep figures are reported for New Zealand and Uruguay.* At the same time, the "Unitcl States and Bussian production has fallen recently, particularly the latter, where the decline may be estimated at about 50 per cent.' of the peak production of nearly 400 million lb in' 1929^ Although both the United States and Russia are wool-im-porting countries, their consumption of foreign wool has been declining despite their smaller domestic production, and it is doubtful whether the wool-export-, ing countries can look for any material extension of their markets there under existing conditions. Fine wool production appears to be still increasing at the expense of the coarser qualities. At the end of the, 1931-32 season, stocks were unusually heavy in Southern Hemisphere countries, where they represented about 10 per cent, of the season's output. ( Shipments from these countries to February 28 during the current season have, however, been 16 per cent, heavier' than a year ago, and, if this increased rate is maintained, 'there should bo no further'accumulation of stocks in these areas. The stocks which have accumulated during the last few years in producing areas have been largely coarse crossbreds and carpetwools. Chinese and Indian exports (all carpet wool) have both fallen heavily. An outstanding feature of the import trade is the heavy increase in the Japanese imports, which /exceeded 200 million lb in 1932, as against 72 million lb in 1926. Australia has been almost the only source of supply during this period, and the increased imports by Japan of Australian wool have absorbed almost the whole increase in Australian production.. Among important European countries, Italy has seen the greatest relative expansion in recent years^her imports in 1932 being greater than in 1926' by two-thirds. The. Italian imports are mostly obtained direct from Southern .'Hemisphere countries, especially Australia. 1 LOW PRICES STILL RULE. iWool prices continue at a very low level, although current prices for most qualities are above the ■ lowest point reached in 1932j .In the case of the finer descriptions some improvement lias, occurred during the past year ,■ in the price position, as compared with that of commodities in general. , The coarser crossbreds have again suffered most. Demand in most wool consuming countries has favoured-the finer wools, and this explains the relatively smaller decline in merino and fine crossbreds, as against < coarser crossbreds. The maintenance of the value of carpet wools appears to be due to the reduced exports from producing countries. The world .production of raw wool in the present season will show no decline, according to the latest indications,(idespite the low-prices that?'have been ruling now for some years. The five important wool-growing countries in the. Southern Hemisphere—Australia, New Zealand,.the.Union of South Africa, Argentina, and Uruguay—which together supply about 85 per cent, of the wool entering world trade will, it is. estimated, produce about 2,050,000,000 lb "greasy" basis in 1932-33, as compared with about 2,020,000,000 in 1931-32, about 1,980,000,0001b in 1930-31, and an: annual average of 1,9,60,00.0,000 lb in the four preceding seasons. Of the other important wool-growing countries, the United States of America showed a.decline in production, but insufficient to outweight the probablo increase in the Southern Hemisphere countries. Eussian production cannot be estimated in the absence of recent sheep figures, but it is almost certain that a further marked decline has occurred in that country's flocks, and tho wool clip must ,be correspondingly reduced. But Russian wool is of no groat importance in international trade, and imports are, apparently not affected by declining production. In 1931 the tendency for merino wool production, to increase faster than crossbred,' which had been in evidence in previous years, was again observed. In the major countries producing merino and crossbred wools, it is estimated that merino represented 56 per cent, of the aggregate production in 1931 ,as againgt 54 per cent, in 1930. In view, on the one hand, of the relative stability in ,1932, according to prosent indications, in the aggregate production of Australia, the Union of South Africa, and the United States of America—the principal countries producing1 merino wool —and in view, on the other hand, of the aggregate production of Argentina, Uruguay, New Zealand, and the United Kingdom, which are tho principal countries pro-* ducing crossbred, wool, it is likely that the relative production of merino and crossbred wools in 1932 underwent little change. " ' , . TJieportion.of-the report referring more particularly to the Dominion remarks that New Zealand's sheep population in 1932, for the second year iv succession, was ' smaller than in the preceding year, and the total decline since 1930 amounts to 2,000,000 or nearly 7 per cent. A smaller wool production in the current season is thus indicated, but a slightly heavier-aver-, age yield per sheep is expected to modify the decrease in production. Wool stocks held by brokers aggregated 40,000,0001b at June 30, 1932, as against 25,000,0001b a. year_ earlier, but exports during the first eight months of the current season (July, 1932, to February 28, 1933) wero 20 per cent, above last season's figure for the same period. This increaso suggests that further stocks are not accumulating and, if the present rate of shipments continues, end of season stocks in June next should be lower than a year ago. The wools held over in recent seasons have been mainly coarse crossbreds.