THE WOOL BOOM

Evening Post, Volume CXXIII, Issue 47, 25 February 1937, Page 12

THE WOOL BOOM

BRITISH TRADE VIEW

CALL" FOR RAW MATERIAL

True, the wool market was easier than it has been, as shown by the last Wellington and Napier sales, but the prospects for ■ remunerative returns to growers are apparent to H. Dawson, Sons, and Co.. Ltd., London, Bradford, and Wellington. Commenting on the London sales at January 12, this authority remarked: "Wool, along with some qther commodities, is enjoying a full share of the prosperity boom." There was an unusually keen demand for export, coinciding with a similarly strong buying activity by Japan in the Australian markets. "The verdict has been given in London today by the reported advance, which may naturally be expected to. give a further fillip to values at the consuming centres. "THIS EAGEK CALL." "The obvious-fact is • now being realised that our raw material is urgently required, in, practically every textile centre of the world.. Moreover, it would seem that for the. moment the demand has outpaced the available supplies. "It is impossible to gauge yet whether this eager call is to be permanent for the whole of the season. ' It is well to remember that higher values generally tend to' check demand/ The vital factor of credifwill come into play. The financial facilities will have to be considerably expanded to cope with the new situation and the higher level of values." The strength of .the. market will be dependent on continuation, of export demand. CROSSBREDS SCARCE. "Bradford topmakers—in fact, European topmakers—are finding it difficult to keep pace with the rapid advance in prices. Stocks are abnormally low in the Home combing mills, both in tops and raw wool, asd must be replenished, or machinery becomes idle, which is the evil most to be avoided. The greatest problem is the temporary scarcity and relatively high .values of crossbreds. both fine and medium. The supply in Europe*is likely to be somewhat limited until April, and for a much longer period, if consumption is maintained. "The healthiest part of the trade is still found in the woollen section. Yorkshire manufacturers are extremely busy and well placed with orders. Overtime is general, and unemployment is at a minimum; in fact, it is difficult to find workers, either for the day or night shifts. The raw material has seldom occupied 'a stronger position, both as regards demand and values."