WOOL PROSPECTS.

Evening Star, Issue 22026, 11 May 1935, Page 14

WOOL PROSPECTS.

Wool being one of the dominion’s key industries, the reports from London, which to a largo extent governs the buying and selling operations of the raw material, are followed with the keenest interest in New Zealand. In the light of past experience, with so many set-backs recorded, it is difficult to prophesy, but it can Ije said that the indications for next season are distinctly promising. In comparison with the previous one, the 1934-35 wool season was very disappointing It is estimated that the bales sold numbered 465,852, realising £4;357,470, whereas in 1933-34 the figures were 633,533 and £10,000,000 respectively. As a consequence, there has been a large carry-over this year, many people holding on to their stocks in the hope of obtaining better prices. With a hardening market there seems to be a reasonable chance of their desires being realised. In the later sales of the Australian season, which has nearly ended, the market was strong, with an upward tendency in prices, and at the London auctions now proceeding, brisk competition by British and Continental supporters is reported, with a substantial rise in prices. Dawson and Co., the well-known British firm, make comments, however, that are on the side of caution. They declare that the greatest need at the moment is a rise in the price of manufactured goods. If the present gradual return to prosperity in Britain is maintained —and there seems to be favourable prospects in this direction—its effect on the consuming public will certainly be reflected in the wool market; indeed, it is one of the factors that are operating favourably at the moment. The reports from Bradford at Easter showed that in all sections of the market the strongest points for several weeks. before that time were recorded, and the position appears to be oVen better to-day, with keen competition from Britain and the Continent recorded at the current London sales. News to-day from Adelaide shows that prices obtained there indicate a 1 progressive increase in the strength of the market. It is stated that the prices were the best recorded not only in South Australia this season, but at any of the Commonwealth auctions. Naturally, the conditions in Australia are much the same as ini New Zealand; a big drop in the sales and tlie financial returns (compared with last season) being recorded. One Melbourne house declared that but for the heavy purchases by Yorkshire the disposal of the Australian clip this season would have been impossible except under the most chaotic conditions. Japan has not supported the market as freely or as extensively as in the past. This is hardly surprising, for the exchange position meant that a given quantity of wool has cost Japan about 70 per cent, more than Yorkshire, and approximately 200 per cent, more than Franco, Germany, and Italy. In order to give holders in Otago an opportunity to reduce their stocks of wool, a special auction is to be held, probably in July, but it is not expected that there will be a great rush to sell. The statistical position seems sound, for reports from various sources indicate that the consuming countries are not overstocked with the raw material. In the meantime the recovery is very welcome. Factors leading to success in wool production are continued trade recovery in Britain and a good Continental market. Japan must always be a reliable customer, and there are strong hopes that under the new turn of events Russia, which is an important potential competitor, may soon be buying largely in the markets. The position in Germany and Italy at' the moment is complicated and their buying operations very restricted, but there are hopes that trade negotiations, especially in the case of Italy, may open up greater opportunities.