OUTLOOK FOR WOOL

Evening Post, Volume CXVIII, Issue 36, 11 August 1934, Page 12

OUTLOOK FOR WOOL

"Rarely has a new wool season opened with prospects more * obscure," states a survey of the market issued recent!}' by the Australian Mercantile Land and l'"iuanee Company. .. The linn comments:—"lt would appear that the fate of the wool markets-will depend very largely on international politics. Kmersency measures applied to trade have at last alfeeted wool, even the laws of supply and demand having been suspended by some important wool-using (••enlres. The most important factors are the determination of Germany to bar imports and of Italy to regulate them. Policies of sell-containment, no doubt, have been forced upon these countries by the exigencies of finance. . .. .

"It cannot be assumed that Germany and Italy, do not need wool. It is probable that they Mill purchase freely as soon as the work of internal stocktaking is completed, or when finance permits. Curtailed imports to.these countries plight stimulate the demand of others,- and we might advance the suggestion that wool ,is not in too great supply even without the customary activity of buyers for Germany and Italy in the Australian market. The call for wool is world-wide, and is increasing rather than diminishing. There are some grounds for confidence in the future demand for -wool."

H. Dawson, Sons, and Co., wool'brokers, Londou, writing on July 3, referring to the German embargo on wool imports, explain that licences for imports are obtainable, as the authorities announce that machinery must be kept busy and unemployment averted. These licences have, however, to be obtained by the consumer, who must supply- proof of need, and the difficulties ai'e still considerable. Consequently the immediate outlook is not very clear, but is by no means discouraging. The principal cause of uncertainty, regarding yahfcs is the fact that there will be an increased supply, variously estimated at from 5 to." per cent. from. Australia. ' . '