WOOL SITUATION

Evening Post, Volume CXXIII, Issue 2, 4 January 1937, Page 12

WOOL SITUATION

BRITISH OPINION JAPANESE OPERATIONS (By Telegraph—Press Assn.—Copyright.) LONDON, January 2. Bradford is keenly awaiting Japans resumption of operations at the Australian wool sales. Most topmakers are quoting higher prices in anticipation of firmer markets, though they consider it would not be surprising if Japan bought only normal quantities in view of her heavy purchases elsewhere during 1936. , Confidence in the present price level is unshakeable, though it would be wrong to expect any startling increases in prices. Most buyers would follow a rise reluctantly, especially as wage increases have affected costs. Thus there is no danger of a repetition of the 1933 boom. . , The whole of the 1936-37 clip is likely to be absorbed during the current season. Carry-overs at the end of June may even show a reduction on the The "Financial News" considers the wool outlook as most healthy. It points out that, notwithstanding greatly increased activity in the textile industry in most countries, stocks are smaller than in January, 1936. There is no danger of a scarcity of the raw material, but, also, there is no danger of an unmanageable surplus.

The Bank of New Zealand, produce department, received the following advice fronx its London office under date January I:—Prospects for all wools at the first series of sales, commencing on January 12, are favourable. _ A strong market is anticipated, and it is expected that prices for merinos and crossbreds will advance a penny per pound.