WOOL MARKET

Evening Post, Volume CXVIII, Issue 51, 29 August 1934, Page 12

WOOL MARKET

BRISBANE OPENING

SMALL PROFIT

(From "The Post's" Representative.) SYDNEY, August 25.

It was with some'trepidation that Australia awaited the opening of the new wool-selling season at Brisbane this week, and' there was a feeling of relief throughout the country when it was realised that the outlook was not nearly so bad as it was .a fortnight ago. There arc certain phases of the market indicative; of a feeling of uncertainty, and although the opening sales are regarded as satisfactory anxiety for the future will not disappear until the market has properly settled down. There are many bales to be disposed of, before Christmas, and if present prices hold until then the industry will have little to complain about. The selection of wool at the Brisbane sales was of good average quality, being chiefly- of the top-making type. There was a large attendance of buyers, and this is regarded as one of the most satisfactory features of the opening. As anticipated the great bulk of the demand came from Japan and Yorkshire, with the Australian mills giving valuable support to the better class-of fleece, wools. There was some French competition, but the demand from Italy showed the effect of the restrictions imposed by the Italian Government. The Italian position, by the way, remains somewhat, obscure, as it was stated in- official circles not long ago that the Italian embargo on Australian wool had been removed as a result of representations made /by the Australian Government. This was denied by Italian trade interests in Australia,:and'that denial is more or less borne .out by the lack of Italian competition at the Brisbane sales. The German embargo resulted in practically no wool being, bought for that coun-.

try. As compared with the values current at the'last important wool salesin Australia,, when 42,763 bales were sold at Brisbane' in May at an .average, price of 13.57 d a lb, the market generally is about 20 per cent, lower all round. The best wools have shown the least decline, being down about 15 per. cent.,'while the maximum fall was shown by thin, wasty, and faulty lots, which were 25 per cent, lower. On this account the withdrawals of poor quality wool have been extensive, the owners' reserves being higher than the market values. The sales so far suggest that the average price of the wool, sold has been about lid a lb, as against an average of about 15d during the Brisbane sales from September to May in the 1933-34 selling season. On-Brisbane results the Australian average price would work-out at lid a .lb, compared with an. average of 15.84 d in the season just closed, 5.72 din the 1932-33 season, and 5.46 din the 1931-32 season. .

At lid the price of wool, is definitely above the cost, of production, but the margin of profit to the*• grower is very small. ■ ■ ■ .