WOOL MARKET

Evening Star, Issue 23000, 4 July 1938, Page 6

WOOL MARKET

BRISBANE SALES BETTER TONE EVIDENT REFLECTION OF TREND IN WORLD PRICES Wool-selling experiences at recent Brisbane auctions are a reflection of the general trend in world commodity prices. Most markets have shown a better tone, caused chiefly by the more hopeful feelings that the United States will display some improvement in industrial activity during the months ahead, says the latest report of Winchcombe, Carson Ltd. The drop in prices during the season has not resulted from any weakness confined particularly to wool, but has been-due to conditions affecting all raw. materials. If trade were moving as it was in 1935-36 and 1936-37 wool would be selling at better prices than during most periods of the last 12 months. Germany offers an illustration of the fact that the use of artificial fibres has not been responsible' for the reduced consumption of wool over this season. From November to March she imported approximately the equivalent of 366,000 bales of Australian weight, more ihan 60 per cent, more than for the corresponding months of the two preceding seasons. She has purchased most extensively in South Africa, where a reciprocal trading agreement has given impetus to her activity, but Australia has shared to a most valuable degree 'in her larger purchasing. All German authorities stress the point that their country wants wool. Lack of finance was the .cause of her much-reduced buying of latter years. EFFECT ON WOOL. That subject raises the question of the effects of artificial fibres, more par-1 ticularly staple fibre, on the use of wool. Their presence in the textile world must exercise- some check on wool prices, though they compete more keenly with cotton and silk than with wool. But they are available if the latter becomes dear. In April, 1937, wool was 70 per cent, dearer than at present, but staple fibre was only 10 per cent, higher than at present, being quoted at lid per lb in England from September, 1935, to October, 1937, and being reduced to 10d l in November, 1937. _ It is therefore available as a pricerestricting factor; but that does not mean that under all circumstances it is definitely putting wool out of use. If it is blended with wool the fabric produced has not the wearing capacity of the geunine " all wool " article. Replacement is more often necessary. In that respect its utilisation conforms to most modern manufactures. The old idea of more or less " everlasting solidity" has given way to products which have appearance and give reasonable wear, but need quicker replacing. The world's wool clip under better commercial conditions than have prevailed during the last 12 months found ready At June 30, 1937, stocks of the raw material at most manufacturing centres were unusually light, though a year's wool clip had. been eagerly bought. . PRICE ADVANCE UNLIKELY. Immediately a marked advance in wool prices looks most unlikely. In March, 1935, however, the clean cost of 64-70's topmaking wools was only 18Jd on the floor, Sydney stores, and in September 50 per cent, higher. World conditions are somewhat different today, with Japan at war in China and Spain upset. But no person can accurately gauge the future. To-day the type of wool quoted is about 20 peacent, higher than in March, 1935. The new selling season opens in Sydney on Monday, August 29 COTTON, RUBBER, ETC. £r«M Association—By Telegraph—Copyright LONDON, July 2. Yesterday's closing prices were : Cotton.—Spot, 4.96 d per lb; August shipment, 4.83 d. Rubber.—Para, 62d per lb; plantation smoked, 7Jd. Jute.—July-August shipment, £lB a ton. Copra.—July-August shipment, South Sea, £9 17s 6d a ton; smoked, £9 17 6d; plantation, Rabaul. ClO 17s Gd. Linseed oil, £26 ss, a ton. Turpentine, 32s per cvvt v

INTEREST RATES COMMONWEALTH POSITION TENDENCY TO HARDEN For the first time in many months there appears to be in Melbourne some indication of a tendency for interest rates to harden (writes the 'Argus '). Since March of last year the money market has been very easy, in sympathy with the satisfactory export position, but, with the change in the economic outlook, the beginnings of a reversal of the trend are discernible. The latest banking averages show that advances are tending to rise at a much faster rate than deposits, movements which, if continued, will also play a part in bringing about dearer money. Most of the additional credit which has been made available by the banks is being employed, it is believed, to finance the heavy volume of imports. The banks are not adopting any deliberate policy of restriction, but they are examining new business with a greater degree of caution. In fact, new business is not being sought particularly keenly. _ A slack demand for mortgages continues. Some large sums have been made available at 4J per cent, on approved city properties, while money is available on good suburban properties from 4 i to 4 J per cent., provided that there is a satisfactory margin of risk. Representative rates of interest ruling at the end of May compare as follows with those for the preceding month and

THE MEAT MARKET [Pee United Pkess Association.] WELLINGTON, July 1. The; New Zealand Meat Producers' Board advises that the following are the ruling prices of quantities of the descriptions of frozen meat mentioned, and ar© for representative parcels of the goods sold on Thursday, June 30. Chilled beef prices are averages of the week on which this list is issued. .All prices are on the basis of delivered to Smithfield Market:— New Zealand Sheep.—Cross-bred wethers and/or maiden ewes: Under 481 b, s£d per lb; 49-561 b, s|d; 57-641 b, 5Jd; 65-721 b, sd. Ewes: Under 481 b, 4d; 49-561 b, 3Jd; 57-641 b, 3fd: 65-721 b, 3Jd. ' New Zealand Lambs.—Canterbury: Under 361 b, 7sd; 37-421 b, 7-Jdj 43501 b, 7fd. Second quality: Average about 311 b, 7£d. Other South Island: Under 361 b, 7*d; 37-421 b, 7-Jd; 43-501 b, 7|d. North Island Downs: Under 361 b, 7|d: 37-421 b, 7Jd; 43-501 b, 7|d. Second quality: Average about 301 b, 7|d. North Island: First quality, under 361 b, 7£d; 37-421 b, 7|d. Second quality: Average about 311 b, 7d. Australian Lambs.—Victorian: First quality, 29-361 b, 7d; 37-421 b, 6Jd. Argentine Lambs. First quality: Under 361 b, 7d; 37-421 b, 6Jd. New Zealand Porker Pigs.—First quality: 61-801 b, 63d; 81-1001 b, 6£d; 101-1201 b, 6|d. New Zealand Bacdner Pigs.—l2l- - 6|d. New Zealand Chilled Beef. Ox hinds, 145-2101 b, 5Jd; ox . fores, 1452101 b, 2Jd. Australian Chilled Beef.—Ox hinds, 145-2101 b, 4Jd; ox crops, weights corresponding, 2£d. Union of South Africa Chilled Beef. —Ox hinds, 145-2101 b, sgd: ox fores. 145-2101 b, 2^d. Southern Rhodesian Chilled Beef.— Ox hinds, 145-2101 b, 4Jd; ox fores, 1452101 b, 2Jd. Argentine Chilled Beef.—Ox hinds, 145-210 lb, 6Jd; ox fores, 145-2101 b, 3Jd. Uruguayan Chilled Beef.—Ox hinds, 145-210 lb, 5Jd; ox fores, 145-2101 b, 2|d. Brazilian Chilled Beef.—Ox hinds, 145-2101 b, sd. Lamb Market.—Shade easier on the heavier arrivals, especially second quality. ' Consumption continues good. Mutton Market.—Wethere and ewes: Slightly easier, with trade slow. Beef Market.—Chilled beef: With heavy arrivals and warm weather prices shade easier. "New Zealand Porker Pigs.—Trade slow, with light-weights easier. New Zealand Baconer Pigs.—Market [Steady and unchanged.

NEW YORK SHARE INDEX DOW JONES AVERAGE

for those of May, 1937: — May, 1937. April, 1938. May, 1938. Yield, Aust. Consols Yield, pref. shares ,: Fixed deposits 12 months ... Municipal loans p.c. 3.72 4.61 P'C. 3.63 4.44 8.75 4.0 p.c. 3.75 4.44 2.75 4.25 First mortgages 4.75 4.75 4.5 4.25 to 4.5 4.25 5.0 5.0 5.0

Railroads. Industrials . Turnover. July 2 ... 27.57 138.53 1.470.000 July 1 ... 26.69 136.53 2,020,000 June 30 ... 26.02 133.88 2.580,000 June 29 26.18 135.87 2,660,000 June 28 ... 24.57 130.38 1,290,000 June 27 ... 25.00 130.48 2,110,000 June 25 ... 25.45 131.94 1,160,000 June 24 ... 25.06 129.06 2,290,000 June 23 ... 24.60 127.40 2,400,000 June 22 ... 22.46 123.99 1,710.000 June 21 ... 21.51 121.34 1,460,000 June 20 ... 20.70 118.61 1,090,000 1958. Highest ... 32.33 138.53 Lowest ... 19.00 98.95 1937. Highest ... 64.86 194.40 Lowest ... 28.01 113.64