THE WOOL MARKET

Evening Post, Volume CXXVIII, Issue 38, 14 August 1939, Page 12

THE WOOL MARKET

TOPMAKERS BUSY

GOVERNMENT REQUIREMENTS

(By Telegraph—Press Association —Copyright.;

LONDON, August 12.

Business in Bradford is at a standstill owing to the holidays. Most top consumers are adequately covered and there is little chance of any substantial new business till after the opening of the Australian selling season. Topmakers and spinners have as much work on hand as they can comfortably accommodate at this time of the year; actually they are behind-hand in deliveries in connection with Government contracts.

The Australian selling season reopens in Sydney on August 28. The trade expects a keen inquiry for the new clip, particularly if as is reported likely Japan increases its purchases. Winchcombe, Carson, and Co., Sydney, in reviewing the world's wool position, ai-e oi: the opinion that "world trade needs to revive to produce an appreciable advance in prices. Some increase has been experienced in it this year more particularly in English and Continental exports of tops and yarns. That supplies a slight indication of an improved demand for wool, but it has a long way to go to generally reach the volume of 1935-37 when competition for the staple was brisk enough to produce average annual figures of 14.2 d and 16.7 d for two successive Australian clips." As was stated recently by the Australian wool-selling brokers, the average price per lb for greasy wool last year ended June 30 was 10.39 d against 12.51 d for the year before. The New Zealand Woolbrokers' Association's averages were 9.189 d for 1938-39; 10.043 d for 1937-38; and 15.82 d for 1936-37.

The demand of the British Government for crossbreds and other strong wools was so strong that the raw wool could not be waited for and tops, a partly manufactured form of wool, were purchased on Government account and distributed to manufacturers. Wool produced in New Zealand is fully 197 per cent, crossbred; whereas Australian is 84 per cent, merino and 16 per cent, crossbred and similar wools. As to the future market for crossbreds, it has to be remembered that the recent demand for such wools is for re-armament purposes. Once that demand is satisfied attention may be paid to civilian requirements, but it will not follow that for these purposes current, or even higher, prices will be obtainable. The price of wool for non-defence requirements will largely depend upon the purchasing power of the general public, but that power has necessarily been reduced in .Great Britain by increased taxation for defence and other purposes, and the same conditions obtain, or presently will obtain, in Australia and New Zealand. In any case there is now less to spend in other countries as a result of reduced proceeds from the sale ot wool. This is apparent in the official returns from wool sold which are as follows:— Y ear S.Z. Australia. £ £ 1936-3r 14,903,257 60,552,572 1937-3S 5,793,573 43,j1d,.G9 1935-39 9/220,741 38,673,957 Authorities for the above returns are New Zealand Woolbrokers' Association. Australian Wool-selling Brokers' Council.