WOOL SITUATION

Evening Post, Volume CXX, Issue 6, 6 July 1935, Page 12

WOOL SITUATION

NEXT LONDON SALES

j MARKET PROSPECTS BRIGHT

J "Evening Post," July 6. I ' London July series of wool sales will J open on Tuesday next. Wool available \ will be some 161,550 bales, but the '■'■-. offering will be approximately 131,500 , .bales. The sales will continue until r.July2s. plThe prospects of the market are Relatively bright. No sensational rises, are to be expected by growlers and merchants. , But the forecast v'^of-the Bank of New Zealand produce v department is for an advance on rates ? ruling at the close of the May series <* of Id per lb on merinos, id to Jd l» per lb on fine crossbreds, Jd per 1 lb on medium crossbreds, and id per .;i lb oh coarse crossbred wools. "i * The advance in prices at the London ,; sheepskin sales on Thursday, supports £•■ the view that prices for wool itself .' will be up in London on Tuesday next. \ Reviewing the last London sales, S Dalgety and Co., London, May 24, f wrote:—"The financial position on the - Continent is anything but stable, and t restricted buying in this respect, from i Germany especially, is only to be ex- ; pected. The suspension of the gold 3 standard in Belgium certainly helped I' trading in that country, but this break- <-; away, of course, does not tend towards v confidence. If, however, the discus- " sions now going on .between the great r Powers lead to some sort of peaceful £ arrangement for the, settlement of out- • standing and future disputes, trading -conditions should improve all round. ■- We consider, in any case, that the wool ■ trade is in as good a position. as, v ■ not better than, any other to respond v to favourable influences. • REDUCED AUSTRALIAN CLIP. < One factor that may. have a good 'influence on the market from the sellr.er's point of view is the reduction m • this year's Australian clip, although ■ it has to be borne in mind when cpn'sidering Australian wool production that 82 per cent, of the clip is merino ..wool andl 18 per cenfe crossbred and ■I other strong wools; whereas New Zealand produces 2 per cent, merino ana .' 98 per cent, of the coarser wools rangI ing from the finest of crossbreds to ••low and coarse wools. Incidentally it v may be mentioned that the proportion of merino to coarser wools grown inAus■•v tralia would appear to be declining, £ for in. 1932-33 the percentages were.— ' Merino 83 per cent.; coarser wools, i'l7 per cent. PWinchcombe, Carson and ;;-Co.; the well-known Sydney wool firm, ' in reviewing the 1934-35 selling season, ■^remark that apart from South Africa, is the only, country, which pxfaorts merino wool in any consiaer- ;' nhFe auantitv- but "if. Australia were to entT?he ycrossbred field too exten- '• sivelV it would be catering for a sec-i-f oh 'the wool trade which 'is al--•ready well supplied with raw materj>ial/vit is added. li' STATISTICAL POSITION SOUND. :V '"The opinion of the wool firm above -quoted is that the statistical position ■S avool is likely to be Wronger than Hi was last season, and. by the way, the 'Australian 1935*36 season opens in Sydney on September 2. The new clip is expected to reach - 2,930,000 bales, and of .thia total pro--sfle^lXt^Tr 0 S%fV d new clip will be from crossbreds and all ■ strong-wool breeds, and that the balance will be merino wool. Owing to the doughty conditions at present prevailing in mahy parts orthe Corn- > monwealth provision has been made ■ for a review of the estimate In November. Upon an estimate of an aver- ; He net weight of 3081b per bale it is - expected that the new clip will show ... a ■ total weight of. approximately "902.440,0001b. The mam selling, season Vwill extend until April, with winter . sales to be held in May and June. • The quantity of wool to be offered before Christmas will not exceed 1420,000 bales, it being understood that action will be taken. to review . this amount from time to time in the ( -light of prevailing market conditions. Australia had an almost complete - clearance r of wool during the season iust closed with only 184,000 bales (at May 31) carried over out of a total of 2 822,989 then received. Tho average price so far this season was 9.9 d per : lb against 16.2 d per lb for 1933-34.