WOOL PRODUCTION

Evening Post, Volume CXXVIII, Issue 56, 4 September 1939, Page 13

WOOL PRODUCTION

INCREASE EXPECTED INDUSTRIAL ACTIVITY (By Air Mail, from "The Post's" London Representative.) • LONDON, August 8. Although it is yet too soon to give any accurate idea of wool production in the 1939-40 season, the Imperial Economic Committee, in its Wool Intelligence Notes, says that from trade and weather reports it appears likely that the aggregate output of Australia, New Zealand, South Africa, Argentina, and Uruguay, the five chief export countries, will be "somewhat above that of 1938-39." Australian indications are that there will be an increase of about 3 per cent. A material decline in New Zealand and South African output is thought unlikely s in view of the "keen demand" for crossbred. In estimating supplies to the market, it is emphasised I that account must be taken of the relatively small unsold stocks left at th? end of the 1938*39 season, as compared with the previous year. It is stated that this reduction will offset to a great extent any increase in this year's production. Very little wool remains unsold in New Zealand, South Africa, and Argentina, and stocks in Australia are well below last year's levels. Interesting comparisons in the distil- ! bution of wool shipments from New i Zealand in the past two seasons are given (the 1937-38 figures in parentheses) . The totals are in millions of i pounds, actual weight:— ! United Kingdom. 166.2 (152.3); France, 37.3 (17.8); Germany, 6.4 (15.3); i Belgium, 19 (5.2); United States, 12.9 (4); Japan, 7.6 (13.5); Italy, .1 (.2);, i other countries, 42.2 (33.5). Total, 291.3 (241.7).. ! - TEXTILE OUTPUT. ~. . , Trade reports and . available statistics indicate, the Wool Intelligence Notes continue, that the activity of the wool textile industry in July was ; back to the relatively satisfactory j levels of 1937. While Government con-1 tract work has contributed largely to , this position, there has also been a marked increase in orders for civilian goods, and some expansion in exports of semi-manufactures. Exports of manufactures, on the other hand, show only limited improvement during the first half of 1939. Prices of tops and yarn have advanced during...the month, the higher crossbred values being now reflected in merino sorts, though the increase has riot yet been quite so great. Stocks of raw wool in warehouses were higher than in any year since 1934. Wool consumption in the United States rose again in May and activity throughput all the branches of the industry was reported: as satisfactory Most" .mills are amply, provided with orders to maintain activity during the next two or three months and stocks of wool at the end of June were reported to be considerably below normal levels. -...'< Top production in France was high in June, but new businesr was less in evidence. Activity showed some recession, particularly in the worsted i spinning branch, but woollen spinners were better employed. There was a better demand, for yam and tissues in i Belgium and the different branches of the wool textile industry are, on the i Avhole, very well employed. Trade reports indicate a maintenance of a fairly satisfactory position in the German industry, taking into account the raw material and labour' shortages. Stocks of raw wool in Japan at the end of April were well below those of a year ago and failed to show the usual seasonal increase. The output .of mixed wool tissues continues to increase at the expense of pure-wool goods, and there has been some improvement in exports of wool tissues during the first 'five months of the year. The consumption of the Italian industry fell slightly in April and stocks of foreign wools were also well below those of a year ago. Activity in Hungary remains satisfactory, and the industry is work-, ing almost at capacity. In the Netherlands employment in the second quarter of 1939-was well above that of a year earlier, and Sweden also reports better conditions than in the second quarter of 1938. Activity in the Swiss industry has shown some improvement during the second quarter of 1939. but in Poland there has been some recession as compared with the relatively satisfactory levels of activity . in. the first three months, of the year!