LONDON WOOL SALES

Evening Post, Volume CXXV, Issue 20, 25 January 1938, Page 12

LONDON WOOL SALES

REDUCED OFFERINGS

TRADE ACTIVITY OVERSEAS

(From The "Post's" Representative.) LONDON, January 5.

Offerings al wool auctions in London during 1937 were the lowest for many years. The latest Wool Intelligence bulletin of the Imperial Economic Committee sets the figure at 463,000 bales, with an additional 48,000 bales not offered in December owing to the state of the market. There was . little change in the amount of Australian wool offered, as it had already fallen well below the average in the previous year. The decline was chiefly evident in decreased quantities of New Zealand crossbreds. Sales of these were 78,000,0001b less than in 1936, and 129,000,0001b less than the average of 1931-35. Owing to the" increased world demand for crossbreds last season a much greater proportion of the New Zealand clip was sold in the Dominion, while stocks in London' were very light. Offerings of South American wool in London were also smaller than usual. About 33 per cent, of the New Zealand wool imported into the United Kingdom was offered at auction in London in 1937 as compared with 38 per cent, in 1936 and 61 per cent, in 1935. There was also a fall in the percentage of imported Australian wool put up to auction. The report' states that there was a sharp increase in unemployment in the woollen, worsted, and carpet trades in Britain during November. The upswing in wool prices overseas, however, brought about a substantial amount of'new business in tops and prices hardened rapidly, although the combing and spinning industries continued adversely affected by the fall in export business in tops and worsted yarns. i Activity in all sections of the United States wool textile industry remained much reduced and very little new business was being done. A more confident tone had, however, been evident throughout the industry, and, with the reduction of stocks in the hands of retailers, an improvement in the activity position was expected early in the New Year. Activity in France remained limited, owing chiefly to poor domestic demand. Some improvement had taken place in the activity of the worsted industry in Germany where wool supplies were improving owing to the activity of German purchasers on overseas markets.