WOOL STOCKS FALL

Gisborne Herald, Volume LXXV, Issue 22612, 15 April 1948, Page 6

WOOL STOCKS FALL

SALES BY J.O. AHEAD OF ESTIMATE TWO SPLENDID SEASONS (P.A.) WELLINGTON. April 14. Stocks of New Zealand wool were reduced between August, 1945. when the Joint Organisation began operations, and June, 1947, from 1,777,000 bales to 1.092,000 bales representing a reduction of 381 per cent, and equalling the position estimated to be reached for New Zealand wool in 1950. These figures were givgn by Mr. G. A. Duncan, chairman of the New Zealand 'Wool Disposal Commission, to a meeting in Wellington of the electoral committee of the meat and wool industry. Critical Stocks Reduced “Joint Organisation stocks of New Zealand’s most critical types, namely greasy 46/50, were reduced during the 1946-47 season by 9 per cent, from 850,000 bales to 730.000 bales,” said Mr. Duncan. “Continuation of sales of these stocks at that rate, involving, in terms of the marketing plan some exchange of new for old stocks, would dispose of the remaining stocks in about 11 years.

“It must be frankly admitted that the extent of demand during the 194647 season and particularly during the 1947-48 season up to January last, has exceeded all expectations. At the end of June, 1947, total stocks of Joint Organisation wool were down to about 4,500.000 bales, or less than half of the original stock of 10,500.000 Pales.

Sales in 1945-40 were roughly 8,900.000 bales, equivalent to two years’ production, and in 1946-47 sales amounted to the curient clip of 4,600,000 bales, plus 1.400,000 bales out of the Joint Organisation stock. Thus progress so far in the liquidation of total Joint Organisation stocks brings us to 1958 in the estimates originally given Nevertheless, it is too soon yet to say that the original estimate of 13 veirs for the liquidation of stocks alongside current clips is necessarily wrong. Contributing Factors

The consumption of Dominion's wool in 1946 47 .s estimated to have been at 33 1-3 per cent, above pre-war, and at the end of that season the trade is calculated to be holding about nine months’ stocks compared with the normal holding pre-war of about six months’ stocks. “Factors contributing to this favourable position are: 1. The extremely' rapid recovery of wool manufacturing activity in several Continental countries.; 2. “The maintenance of high level of consumption in U.S.A. combined with a reduction of 30 per cent, in the US. domestic clip since 1942. The result is that U.S. consumption of Dominions' wool last year, 1945 46, was more than 500,000,0001b—almost 10 times pre-war level; 3. "The decline in size of current clips in Australia, South Africa due to drought: 4. “Abnormal shipping and internal transport conditions, resulting in need on part of trade to carry larger stocks to ensure availability.'”