GOOD WOOL PROSPECTS.

Hawera Star, Volume XLVIII, 16 October 1924, Page 10

GOOD WOOL PROSPECTS.

OUTLOOK FOR FUTURE

1 ‘ FIRM AND BUOYANT MARKET.” “The position of wool values to-day is on an extremely sound basis, ’ ’ states one of the wool brokers in a statement just.issued, “and the growers may confidently look forward to at least a maintenance of, if not an improvement on, the parity of prices ruling last season. The- world’s stocks of raw materials are very much less than at any time since the close of 1914, and although opinions, may differ as to the. exact quantity of last season’s clip which will go into consumption before the next selling season it is readily agreed by all who have, studied the position that there will not be enough wool available next season to satisfy a depiand equal to that of the past two years.

“The year 1921 was considered by manufacturers to be a period of very low consumption and it appears evident that the available supplies for the ensuing season will be appreciably short of the quantity consumed during that year. A recent estimate of the world's consumption, is on an average of 2,500,000,000 lb, and the available su PPly for last season was 2,511,000,000 lb. It, is not expected that during the coming season any material increase will be shown in the w r orld's production of wool, and, as a, matter of fact, it will be some considerable, time —probably at least five years—before the number of sheep in the world will approximate those of pre-war figures. From this it will be readily seen that the outlook, for wool values for the coming season is on a distinctly sound basis, and it is doubtful if the prospect for growers has ever been more favourable.

“With the disposal of the last of ‘Bawra’ stock at the end of March last it will be realised that the available surplus of stocks accumulated during the war has gone into consumption, and judged by the average consumption of the world during the last ferv years it is evident that trade is deeply concerned as to whether a sufficient quantity of raw material will be available to meet the world’s needs. During the last few days newspaper reports indicate a very favourable tone in connection with Continental exchanges, and with the establishment of a satisfactory financial condition in Germany it is evident that the country will be a very large purchaser of the raw material during the coming season. Competition from Germany for the past season was remarkably keen, and it is a matter of wonder to the trade, considering the difficulty of finance, how they were able to lift such a huge quantity of wool. With the .removal of this disability, supported by the low cost of manufacturing the raw material, they will be very favourably suited during the coming season.

“The position to-day from manufacturers' point of view is somewhat different from that of other boon periods. Tn the past the manufacturer was able tjo pass !ou to the consumer without any difficulty the increase in ..price of the manufactured article, but at present he is faced with having to pay an extreme price for the raw material which is not commensurate with the price at which he, is able to sell the product. This, no doubt, is a matter of only temporary moment, but during the last few series of London sales it certainly had a deterring influence on present-day values. Bradford during the last series of London wool sales was in rather a pessimistic frame of mind for the first few days of the series, but later cablegrams indicate a general recovery, and prices to-day show no falling off compared with previous series. “The outlook for wool appears to be on a very sound basis and wool grow--1 ers can confidently look forward to a l firm and bouyant market for the coming season.