WOOL POSITION

Evening Post, Volume CXXI, Issue 29, 4 February 1936, Page 12

WOOL POSITION

DECREASE IN PRODUCTION

SHOULD STILL SELL FREELY

The five principal wool-exporting countries in the world are Australia, New Zealand, South Africa, Argentina, and Uruguay, remark Messrs. Winchcombe, Carson, Ltd., in their circular of January 21. This season South African production is expected to show an increase of 12 per cent, on last year, but on that level will be 25 per cent, less than in 1932-33. Australia, New Zealand, and Argentina will all shear less wool than twelve months ago, while Uruguay is not anticipated to show any change in her total, but the decrease in the quantity grown for the five countries quoted is estimated to be the equivalent of 293,000 bales. To that figure it is necessary to add the decline in carry-over stocks at the close of last season, which showed a reduction of approximately 163,0001 bales; About 456,000 bales less are consequently available from the five producing countries. That is a substantial decrease, and its influence is accentuated by the fact that Japanese buyers are taking muchincreased supplies. From July to the end of December exports of wool from New South Wales to Japan were 70,734 bales, or 69 per cent, more than in 1934. That rate of expansion will not be seen for the full season as shipments have increased partially owing to more rapid selling, but the figures give an indication of Japan's keenness for supplies and her year's purchasing looks certain to exhibit some expansion. MANUFACTURING IN JAPAN. In manufacturing equipment Japan now ranks fifth in the world's woollen textile industry. Extension in her plants has occurred of recent years, but at the latest date for which statistics are available she had 1030 combing machines and 26,923 looms, the numbers being exceeded only by Great Britain, the United States, Germany, and France. Provided nothing unexpected occurs to disturb trade, the sheep's staple has excellent prospects of continuing to sell freely at most acceptable prices. Fortunately wool values have not shown the upward rush which they did in January, 1934, when in a few weeks they advanced 20 per cent. They would need to rise a further 25 per cent, to 30 per cent, to reach the top basis of the period quoted. The steadiness of values has been one of the most encouraging features of this season's selling. It has encouraged trade and promoted confidence. Sharp rises would have raised doubts as to their maintenance. Turnover has, however, expanded, indicating that business in most countries has been healthy, millmen finding them-] selves able to secure prices for thenproducts in relation to the increased cost of raw material. Recent reports of turnover in tops at Bradford have been favourable. English, Japanese, and American activity j has set the pace this season on the world's markets and gives promise of continuing to exert its sound welcome influence. j