THE WOOL MARKET

Evening Star, Issue 17765, 13 September 1921, Page 6

THE WOOL MARKET

UPWARD TENDENCY. WORLD’S REDUCED FLOCKS. Tile Minister of Agriculture (the lion. W. Nosworihy) suggested the other day (says the ‘ Dominion ’) that tjiercrwas now a more hopeful tone in tho wool market. Ho referred particularly to the reduction in tho world’s flocks during the last seven years, and tho consequent decline in the production of wool. Ho believed that there was evidence now of an upward movement in values. " “In tho many reviews that have been made of tho present wool position,” said the Minister, “it docs not appear that sufficient consideration has been given to the reduced number of sheep throughout the world. Much has been made of the carry-over stocks of Imperial Government wool which have obsessed tho minds of producer", manufacturer, and consumer alike. When the worst is said, the total stocks held by tho Imperial Government at the end of December, 1920, amounted to something less than the equivalent of tho 1919-20 Australian, Now Zealand, and Capo dips. “Is it not a fact that in normal times this quantity of wool, and perhaps more, would bo bold as a matter of course at. the commencement of tho marketing of a new clip bv manufacturers in the United Kingdom, France, Belgium, and Germany 1 For once in the_ world’s history this wool lias been all in one hand, counted, and held np as a bogy before everyone’s eyes. “ immediately after the war the v.'orld was starved for woollen goods, and the demand forced up the prices for both raw and manufactured goods to abnormal and unjustified prices. The orgy of spending had the natural ending of empty pockets, and tho sudden cessation of demand, coupled with heavy working costs, labor troubles, and the delay in determining tho German reparations and tho bams on° which business would bo don© with late enemy Powers, resulted in a panic which brought prices down in a few months to the lowest this country has ever seen, and far below the cost of production. “Comparison of tho worlds flocks of sheep in 1914 and 1920 indicates _ that every halo of (be carry-over wool will bo needed for consumption, and th© increased activity lately evidenced in manufacturing centres justifies the belief that an upward movement in values, bearing at least some closer relation to the cost of production, is now in progress. “The following figures arc compiled from official statistics, and show' the number of sheep in lb© principal countries producing wool with which Lew" Zealand wool is in competition;

Totals ... 582,722,635 256,905,321 *Uruguny, 1918, latest figures available. “There is no suggestion that the production of wool in 1914 was in excess of the world's requirements; rather the contrary, as wool rose gradually in price from 1906 to 1914. Yet it is seen that in 1920 there were in these eight countries 71,817,312 sheep fewer than In 1914, the annual reduced production of wool at 71b per head and ooOlb to the bale being no fewer than 1,436,546 bales. “Of tho principal Continental sheepbreeding countries tho most reliable figures show that the flocks of France, Germany, Spain, and Italy - combined have been reduced by over 10,000.000 sheep. Of Austria, Russia, and Turkey there are no late statistics, but even if the. usual quantities were available from these countries, which is impossible, the wool does not come into competition with the wool of tho Dominions. “Careful of the above facts will, it is hoped, assist to produce a more hopeful financial outlook for our sorolv embarrassed woolgrowers.”

Country 1914. 1920. United Kingdom 27.886,095 25,107,806 United States ... 49,719,000 45.067.000 Canada ... ~. 2,175,302 5,720,783 Argentine 83.546,000 45,309,419 Uruguay 26,286.296 *11,472,852 South Africa 35.710,843 29,305,241 Australia 78,600,334 73,002,250 New Zealand ... 24,798,763 23,919,970