WOOL PRICES

Hawera Star, Volume XLVIII, 22 December 1924, Page 5

WOOL PRICES

THE SUDDEN DECLINE

UNDERLYING FACTORS

HAVE NOT CHANGED.

BY CABLE—PRESS ASSOCiATIUiV —COi J ARlGill

Received Dec. 22, 10.20 a.m. . LONDON, Dec. 20. Discussing the avool outlook in connection Avifcff tfie sudden decline of prices at tlie New Zealand, sales, a Bradford newspaper points out that the underlying factors governing tffe aa*ool situation nave not ciiangea. There is good ground for stating that current supplies exceed the requirements of the Avorid’s avool and textile industries during the nex nine or ten months. If America maintains the nresem, rale or machinery activity she Avili have to buy heavily m the early months of 1925 to enable manufacturers to tide over the period till the domestic clip comes into the. market'. Germany has bought enormous Aveights of yarns at prices far behind current quotations. Spinners who handle the German trade feel quite confident regarding the coming year, though, if. possible, if prices Avent still higher, the German market Avould be adversely affected. The purchasing poAver of Central and Eastern Europe, is so low that if tlie price of avool and clothing goes beyond a certain point'the demand will be forced to cheaper fabrics. The Home t.rade outlook lias disturbing* features, the most serious of Avliich is the bugbear of high prices, Avliich are bound to make trade difficult. Were prices more reasonable one could more confidently predict healthy trade expansion, but, as it is, the tendency is in tlie right direction, and there is no reason to fear a break in prices.