BRITISH WOOL TRADE

Evening Post, Volume CXXX, Issue 25, 29 July 1940, Page 10

BRITISH WOOL TRADE

EXPORT POSITION

RAW MATERIALS & TEXTILES

(By Telegraph—Press Association—Copyright.)

LONDON, July 27.

There is a good deal of discussion about redistribution of the world's raw wool and also wool textile markets. It appears increasingly improbable that wool- prices will advance further.

Some South American reports predict that the re-armament programme will create a new stimulus, but United States purchases haye v so far only slightly increased American values.

Argentine exports to May were 20 per cent, below those of the previous season. The Uruguayan market has suffered severely.

Great Britain's established markets for yarns and cloths have been reduced; but competition overseas from. European mills has ceased.

It is thought that some valuable new markets can be captured. However, British firms ask high prices and have no intimate knowledge of markets like that of South America.

In Bradford trade circles comment is again made on the growth of direct exports from the Dominions to foreign countries.

Great Britain's re-exports of wool are believed to be declining for this reason.

The Canadian mills are rapidly increasing production, and South African wool growers are urging the Government to investigate the erection of woollen mills in South Africa.

The American wool situation is reiViewed by Winchcombe, Carson, and Co., Sydney. This authority holds that the United States, though more or less isolated from European hostilities, cannot keep its markets free from the influence of the war. Recent wool quotations received by mail from Boston show a decline of 20 per cent, to 25 per cent, in prices for the domestic clip since the end of September, 1939, 10 per cent, of that reduction being experienced since last January. Turnover at the American mills has been less active, but apart from that circumstance the law of supply and demand has operated against markets conducted • under usual selling conditions. The number of consumers has lessened, because of the blockade of Europe, but the quantity of wool grown in the great exporting countries, Australia, New Zealand, South Africa, Argentina, and Uruguay has been maintained.

The amount of wool consumed 'in the United Kingdom has been very large, the increase to some degree offsetting the absence of the usual Continental consumption. Hopes are held that America will buy greater quantities because of its defence programme and the fillip which greater Government spending should give to trade generally. Japanese requirements may expand, but so far this year Japan's exports of woollen products have shown a decline and that reduction has given considerable concern. A special cut in prices for export goods is contemplated in order to regain trade.

America has bought heavily in South America. The equivalent of over 340,000 Australian bales of wool was shipped from Argentina and Uruguay last season to France, Italy, Belgium. Holland, and Scandinavian countries.