DEMAND FOR WOOL.

Evening Star, Issue 22627, 20 April 1937, Page 8

DEMAND FOR WOOL.

That the demand for wool is still keen was clearly demonstrated in Dunedin yesterday at the fourth and final auction of the season. There was no doubt in the minds of the producers beforehand about a satisfactory result, but the prices received for cross-breds and half-breds exceeded anticipations. The lot of the wool-grower to-day is a happy one when compared with the conditions that prevailed so short a time ago. The advance in prices is little short of extraordinary. This year’s clip in Otago, it is estimated, will realise a total of at least £2,250,000 for the four sales, compared with £1,314,614 for the 1935-36 season. What emphasises the vast improvement in the market is the fact that the Dunedin total for the four auctions in 1934-35 was £776,241. In that season, under the depressed conditions prevailing, the demand was very poor, and the carry-over of Wool consequently large. At yesterday’s sale strength all round was indicated, competition being keen from Bradford, the Continent, the - United States, and Japan. An estimate of the financial returns from the auctions in the Dominion up to March 28 was approximately £15,000,000. It is not only the direct returns this season that give reason for satisfaction. The prospects for the future are bright. In all the consuming countries stocks are low, and the demand consistently strong, so that the road is clear for the marketing of tho growing clip. The manufacturing centres abroad apparently have stocks of wool that are no more than sufficient for the immediate demands of the mills. Consumption in Britain and on the Continent in the last six months has been well maintained, and there is no indication of any slackening in the demand. Bradford has bought 12 per cent, more wool (in weight) than in 1935-36, with indication of increasing demand consequent on the greatly improved economic conditions and a marked rise in purchasing power. The United States also is an important factor in the position, where trade recovery and higher wages in most industries have greatly stimulated tho wool market. Soaring prices for the raw material tend to make people turn to substitutes, but against that is the fact that no synthetic material is equal to the pure wool, which naturally is preferred when the consumer has the means to pay for it. The favourable factors of a consistently strong demand and the absence of a considerable carry-over make the prospects of the pastoralists for next season highly encouraging. The profitable operation of this great primary industry is not only important to the wool farmer, but the whole financial and economic system of the Dominion will benefit.