FALL NOT SERIOUS

Gisborne Herald, Volume LXXV, Issue 22585, 13 March 1948, Page 6

FALL NOT SERIOUS

WOOL FLUCTUATION NO MARKED RECESSION The opinion that the recent variations in wool values cannot be regarded as a serious set-back is expressed by the Australian woolbroking firm Winchcombc, Carson, Limited, in its weekly review of wool conditions.

No marked recession in business has been seen abroad, states the review and, while employment is plentiful and the consumers’ needs for most manufactures unsatisfied, it is unlikely that there should be a decided setback in the raw materials needed to make the goods.

During February practically every buyer was well equipped with orders, but buying limits in a great number of cases were below the figures prevailing. The market was more or less dominated by a relatively few operators who were prepared to pay values in excess of those permitted by most overseas mill men.

In New York the futures top market receded about 5 per cent, about the middle of February, but recovered and has shown signs of steadiness. The same circumstances prevail on Continental markets, and Bradford quotations for early March showed little change. Some hesitancy in purchasing was the natural result of a downward variation after a period of high prices, but unless some sudden serious development occurred confidence in the sale of wool at good figures should be maintained. At present the world favours worsted fabrics, which require types of wool suitable for combing, spinning, and .veaving, Well-grown Merino wools and the finer crossbreds were in a sound position in this respect. In no country in the world are there surpluses of woollen products and on present indications the fluctuation in wool prices appeared to be an adjustment to a more moderate and workable range rather than a falling-off In trade in goods and a loss of confidence.