THE OUTLOOK FOR WOOL

Evening Post, Volume CXXVI, Issue 49, 26 August 1938, Page 8

THE OUTLOOK FOR WOOL

It is early yet to seriously consider market prospects of the 1938-39 New Zealand wool market, the sales not beginning until the end of November, but some idea of the value of wool in general may be obtained from the Australian selling season which begins on Monday next, in Sydney. Australia's wool, consisting of 84 per cent, merino, will meet a market demand different from that of New Zealand, which produces 97 per cent, crossbred and other strong wools. Even so, the course of the Australian market will be of some value as a guide to the value of New Zealand wool. Some wool, consisting almost entirely of crutchings, has been offered in New Zealand since July last, and while

prices realised at the Wellington sale were better; than those in the trade expected, Lids made at the subsequent sales at Christchurch and Timaru were not attractive to sellers, with the result that much of the wool submitted failed to reach reserves aoid was not sold. The test of the market applied at the London July series of sales indicated a keen demand for crossbreds from Yorkshire manufacturers and Continental buyers were strong competitors. However, reports since received by cablegram and mail go to show that British wool consumption has slackened off by 15 to 20 per cent, on that of last year, and manufacturers are finding business in tops and yarns and the finished textiles more difficult than it was a year ago. The wool market—as all other markets —is still in the shadow cast by grave international complications in Europe and the Far East, a shadow varying in density from day to day. In such untoward circumstances will the Australian woolselling season begin on Monday next. Even so, the results of the Sydney sales should have a particular interest for all directly engaged in the wool industry of New Zealand, and a general interest for those who are not, considering the importance of the contribution made by wool to the income of this Dominion.