WOOL PRICES

Hawera Star, Volume L, 20 June 1930, Page 8

WOOL PRICES

OUTLOOK FOR GROWERS lessening of demand bank CHAIRMAN'S REVIEW. (Special To Tbo Star.> WELLINGTON, June At ‘ The past year lias been liulewurUiJ because of the fall in ,the 1™ received tor our wool, stated bn George. Elliot, chairman of directm-s of the Rank of New Zealand, at the annual meeting to-day. “In advancing reasons for this state of things, change of fashion m clotliitior tile discarding to a large extent oAveollen underwear, the introduction in recent years of artificial silk, together with the great increase in piocluction that has taken place "i woolproducing countries, are all iactois that must be kept in mind. “The world production ot rayon, 01 artificial silk, was estimated 'by the ‘Silk Journal and Rayon Weekly to be 412,000,0001 lb in 1929, as against 345,000,003 in 1928. “These are large figures lor a product which hot so many years ago was practically unknown on a commercial scale., and amount to .nearly twice the weight, of this Dominion s annual wool clip. Almost the whole output of rayon has been used im Liu purposes for which wool, cotton and pare .silk were previously used. iet the world production of woo has not remained constant, but has steadily increased. , •? “As compared with the average prewar year, last year’s . world production has increased nearly 20 per cent. , “The Government Statistician has been good enough to supply Ins estimate of our woo l clip tor this last season. it amounts to 24p,0uy,byU pounds, and compares with preceding 'seasons as follows:

Season 1927 220,032,0110 lbs. lyos 23-1,209,000 lbs. ” 19A) 243,050,000 lbs. “in connection with these figures, the Year Rook states that no addition lias been made for wool on sheepskins exported, nor for loss in .scouring or wasiiing If these were added, the weight of New Zealand’s production for iyvy would probably total 260 million “Russia, a. purchaser of wool, in the past is making every effort to become a , .seif-contained unit, and large .numbers. ol stud 1 sheep livae been imported from Australia, for the purposes ol building up national flocks. Iho Lank of Russian Trade, in its ‘review’ tor March, 1930, makes the following comment : ‘lt is anticipated that the shortage of woollen cloth which has been experienced in the Soviet Union since the war will exist to a much smaller extent at the end of the live-year period covered bv the plan, but imports of wool wiH still continue, since the measures taken for the increase of sheep-raising will not produce their full effect until some years after 1933.' “If the expectations of the Soviet Government are realised, then Russia will annually become a .smaller purchaser or wool and eventually will < ease to be a purchaser altogether. “From a Dominion point ol view it is .fortunate that the. fall m the price of wool, has been offset, to some, extent l>v increased production. “Sonic, of our growers, considering that the present depression is more or less temporary, have, held their clips and propose welling when -prices improve. Time alone will prove the wisdom or otherwise of such a policy. “It wool-growers are facing a cycle of falling markets, the holding over of wool to next season my accentuate the

possibility of a further tall, assuming that next year’s world clip is as large as this year's. “In other countries substantial quantities of woof are unsold. The Rank of London and. South America, Ltd., writing in March,, stated that there were 9,000 tons of unsold wool in the central market at Buenos Aires, as against 4000 tons at the same date in the previous year. Their Baliia Blanca branch stated at the same date: Present stock is said to be 2,f 14.873 kilos as against 416,318 kilos at this time last year.’ Other branches of the same bank report similarly. The .Monte Video (Uruguay) branch stated that the total dip. was approximately 145,000 bales, of which 107.000 were unsold.

“During the last few weeks .prices have improved. To w hat extent this is due to a temporary shortage in the consuming countries it is not possible to say. It may be that prices reached rock bottom in January and February —time alone will tell.’’