THE WORLD'S WOOL

Evening Post, Volume CXV, Issue 138, 14 June 1933, Page 14

THE WORLD'S WOOL

PRODUCTION INCREASE •MARKETING BOARD REVIEW

\, , .'"Evening Post," Juno 14. ; The Wool Statistics Advisory Committee f>f the Empire Marketing Board has just issued.a valuable review of the world wool situation as at the end of March, summarising the latest available statistics with regard to wool production, stocks, exports, imports, and prices. Dealing with production of wool in the Southern Hemisphere the review observes that, taken as a whole, output lias not been reduced, although smaller sheep figures are reported for Now Zealand and Uruguay. At the same time, the United States and' Russian production has fallen recently, particularly the latter, where the decline may be estimated at about 50 per cent, of the peak production of nearly 400,000,0001b 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-exporting countries can look for any material extension of. their 'markets there under existiug conditions. l'"me wool production appears to be still increasing at the expense of the coarser qualities. HEAVY STOCKS IN FIRST HANDS. 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 agoi and, if this increased rate is maintained/ there should be 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 carpet wools. 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 200,000,0001b in 1932 as against 72,000,0001b 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. LOW-PRICED WOOL. "Wool '.prices continue at a '.very low level, although current prices for most ■qualities are above thr> lowest point reached in. 1932, the statement adds. In the case of the finer descriptions, some • improvement has 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. Estimated, production in millions of pounds of wool on a greasy basis for 1932-33 are; given as follows:—Australia, 3.030,000,000 pounds; .New Zealand, 260,000,000; Union of South Africa, 300,000,000; Argentina, .340.000,000; Uruguay, 120,000,000; United- Kingdom '(1932), 130,000,000;.. United States (1932), •434,000,000; Soviet Russia not available, tiranil total for all countries. 2,014,000,000 pounds, compared with 2,600,000,000 pounds for 1931-32 and 2,530,000,000 pounds for 1930-31. ; NEW ZEALAND'S POSITION. New Zealand's sheep population in 1932, for the second year in succession, was smaller than in the preceding year, and the total decline since 1930 amounts to two millions, or nearly 7 per cent. A smaller wool production in the current season- is thus indicated, but a slightly heavier average yield per sheep is expected to modify the decrease in production. AVool 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 tho curTent season (July'l, 1932, to February 28, 1933) wcre,2o per cent: above last season's, figure'for the same period. This increase suggests1 tliafc further stocks are not accumulating and, if the present rate of shipments continues, end of season stocks in June next (1933) should be lower than a year1' ago. The wools held over in recent seasons have been mainly coarse crossbreds.