OUTLOOK FOR WOOL

Evening Star, Issue 25226, 13 July 1944, Page 4

OUTLOOK FOR WOOL

HOME TRADE OPINION UNPRECEDENTED POST-WAR DEMAND (N.Z.P.A. Special Correspondent.) (Rec. 10 a.m.) LONDON, July 12. Tho rigid control of Britain's wool consumption for homo purposes is exemplified in the announcement that the major portion of the July-October rations to British mills must be used entirely for utility cloths for people of modest means. If manufacturers were allowed to make any desired cloths they might _ produce expensive types for commercial or other reasons. Tho authorities, therefore, ensure the spread of woollen goods production over all types of clothing by_ specifying the quantities and qualities which manufacturers'may produce. This directional control ensures that all sections of the public are catered for. It also ensures spread of wool consumption over all types. New Zealand cross : bred wool is well placed owing to its Wide field of usefulness. It is not onlv extensively fused in manv forms of war production, but is also in demand for civilian wear owing to its robust qualities and durability. War conditions have served to popularise New Zealand cross-breds still further, for the limited public purchasing power, owing to clothes rationing, has caused the public to turn from soft handling fabrics to more durable hardwearing cloths, in the production of which New Zealand wool plays a valuable part. The wool trade hero is not perturbed at tho reports of withdrawals at auction of the United States stock of wool, and sees no reason to regard this as a pessimistic augury in the long-term wool outlook. United States domestic war economy is not built on a basis of restricted supplies to the same extent as some of the other United Nations, and tho United States current wool experience is no criterion for the world as a whole.

Trado opinion here is that the end of the war will releaso an unprecedented demand for wool from most countries sufficient to make substantial inroads into any war time accumulations. It is believed that both postwar demand and consumption will be regulated according to a-, system of priorities and urgency of need, and effective steps have been taken to prevent any exploitation. Apropos of the opening of the new wool year with July, traders hero are discussing the duration of the present British jG-overnnient wool purchasing agreements with the dominions. Tho trade understands that the agreements are for the war period and one subsequent wool year. If the latter is the July to Juno 12 months, the fact that tho ivar has passed into a new wool year conceivably means that the present agreements cover the 1944-45 and 1945-4 G clips. Whatever official interpretation may bo placed on the duration of the agreements, trade opinion hero is that much may happen in the period during which (Britain is already contracted to buy clips to clarify further the outlook for world wool.