OUTLOOK FOR WOOL

Evening Post, Volume CXXV, Issue 70, 24 March 1938, Page 12

OUTLOOK FOR WOOL

WHY DEMAND F.ELTJ

OFF

LOW LEVELS REACHED

H. Dawson, Sons, nnd Co., wof.\' brokers, writing London, Fnbrunry 14, reported that at that time valucH for merino combing flcoco, on a clean scoured basis, had fallen from 3f«l to 20d. "The principal adverse featurts in the situation is the temporary decline in consumption. Machinery nativity is again down, particularly In the worSted spinning and blanket hcctions, where the consumption of wool is respectively approximately 1!) per cent, and 35 per cent, below n year ago. On the other hand, the high wool I production level achieved in recent 'years, is being maintained, and supplies appear plentiful overseas. In addition, a large cotton crop brings n carry-over in America of 20,000,000 bales. Nevertheless, at current levels, competition from artificial fibres is not so keenly felt. "Looking back, price levels no doubt had reached a high and unhealthy level, at which consumer-demand tended to diminish," Dawsons remarked, adding that "recent adjustments should bring an increasing volume of trade, but not before a careful analysis of costings has been forced by the dearth' of immediate business.

"Every successive fall in wool increases the prospects of a larger turnover. Wool is able to displace all its competitors, as already, in countries bare of stock, the decline in values has proved to be a boon, enabling a much-increased baleage to be taken. The outlook is steadily improving from a raw material point of view, but it may be some months before the manufacturing sections are able to. again return to full-time working."

Since these comments were made the Australian and New Zealand wool markets have shown some improvement.