WOOL PROSPECTS

Grey River Argus, 17 May 1938, Page 9

WOOL PROSPECTS

Brighter Tone TENSION RELIEVED. A somewhat brighter tone has developed in the wool market of late, prices showing a trend in sellers’ favour, states the latest report of Winchcombe, Carson, Limited, Australian woolbrokers. The improvement is in sympathy with a more general feeling of confidence in world commodity markets.

In Europe, the tenseness noticeable a few weeks ago has been relieved; and monetary action by the Unit.d States Government, it is hoped, will revive industry in that country and create a strong demand for raw materials from the primary producing countries.

Immediate marked effect on wool values does not appear probable, large quantities of the sheep’s staple are on hand in America. In addition to trade warehouse stocks, growers have fairly bulky weights of the current season’s clip on hand unsold. Mill activity has been so reduced in the last year that the inquiry for supplies has not been sufficient to produce acceptable figures for many sheepowners. The Government has granted pastoralists loans to enable them to carry on, pending the sale of wool which may be on hand, and also to prevent the 1938 clip being rushed on to the market owing to financial pressure.

Apart from the fact that the quantity of wool on. hand in Australia suitable for America is now small indications do not point to tho United States urgently requiring imported supplies. In the more distant future, however, prosperous conditions in the country would certainly have favourable results on trade. At the moment, the wools which appear to be in the strongest selling position are medium and coarse crossbreds. Bradford quotations for medium and coarse crossbred tops are higher than at this period of 1936, but fine crossbreds and all Merinos are .cheaper. - . The relative dearness of medium and coarse crossbreds is due to their scarcity, partly owing to the consumption which has proceeded for military purposes, and also as a result of the smaller quantities produced. The tendency has been for finer crossbreds to be grown because coarser types were very cheap for some years.