WOOL BOOM

Grey River Argus, 30 April 1936, Page 2

WOOL BOOM

Expected to Last DEMAND MORE EFFECTIVE. A USTRALIAN REVIEW. (Aus. & N.Z. Gable Assn.) April 28. Optimism is tho keynote oi the annual Wool Review issued to-day lor Wjnehcombe Carson Limited. “The tendency is for wool consumption to expand, despite the increase in the output of substitute fibres which is five times greater than ten years ago. The coming season’s wool market depends chiefly on trading and financial conditions abroad. Practically no carry-over stocks are available for millmen. The expansion of the Japanese purchasing has become the most important market factor, for whereas about 25 years ago Japan, bought 20.000 bales of wool, the day appears not far distant when 50 times that quantity will be necessary, Much larger consumption was also recorded last season in Britain, United States, France, Belgium, Spain, Holland and other countr.es including Australia. Although the Germans bought only about one-fifth of their usual requirements last year, quite large quantities of Australian wool reached Germany through other countries, in the form of treated wool, tops and yarns, Yorkshire' activity was one of the most reassuring features of the season’s Australian sales, and United Kingdom imports of Australian meringo in 1935 were 9,723 thousand lbs greater than in 1934. “The past season was remarkable for the stability of wool values, averaging 40 to 50 per cent, above the preceding year. The absence of fluctuation promoted confidence, strengthened compel Ilion and enhanced prices, The wool sold in the Commonwealth and abroad in 1934-35 was worth .€41,000,000 (Australian currency) compared with £52,000.000 in 1935-36 Crossbreds have not tuTvaneed as fully as merinos, which partly was due to the fairly bulky carry-over stocks particularly in Now Zealand. The production of wool in Australia for the year ending June 30 next is estimated at 3,000.000 bales compared with 3,197,854 in 1934-35.’’ LONDON, April 28. In view of the strong statistical position, the third series of tho London wool sales is expected to open very strongly. Sober observers consider the- situation the best for years. The Continental uncertainties and the reluctance of the British consuming trades to stand further advances it: prices alone prevent excessive ebullience. The catalogue will be smaller than usual. The unsold raw material ir. Yorkshire is the lowest since 1932. The healthiest feature of the position is that the heavy imports in the past eight months have been for current consumption, Some traders are even talking of a wool famine. The third series of the London wooi sales open o n May 5, and close on May 15. 'The catalogue total is 91,300 bales comprising 24,000 Australian. 48.900 New Zealand, 1400 South African, and 16.900 South American.