OUTLOOK FOR WOOL

Hawke's Bay Tribune, Volume XXII, Issue 147, 7 June 1932, Page 11

OUTLOOK FOR WOOL

ANXIETY IN THE TRADE. HESITANCY OF BUYERS. "The predominant factors in the wool situation arc political and financial, which are adversely influencing our markets more than any internal or local factors in the industry,” states H. Dawson and Sons, Limited, woolbrokers, with branches throughout the world, in a comment upon the outlook in tho wool market, following the opening of the third series ot colonial sales in London in April. There were, the firm states, many vital political questions to be straightened out before one could expect a genuine return of confi dence, or those improved values which everybody felt were more than justified for the raw material.

"There is but one opinion, both with the producer and the consumer, that wools are cheap enough; and in crossbreds the values are ruinous for the grower. Meanwhile, Australian markets are standing the test very satisfactorily. New Zealand and South American markets have again shown serious declines in value. The supplies of crossbreds are too heavy for present requirements, although there seems to be, from previous experience, little justification in attempting to give fictitious support by holding up sales. They are, however, so cheap and plentiful that new openings cannot fail to be found at this low level. The absence of United States competition for these, or any class of wools, is still conspicuously apparent.

"Reports from the manufacturing end at home are irregular and somewhat chaotic. The better class worsted section is quiet. Woollen mills are extremely busy, and in both Yorkshire and other areas a large proportion is working overtime. Ladies’ costume cloths are si ill in great demand; and tho effect on the market has been a keen call for all short- and cheap clothing wools, and the position in this section is healthy. Preference is, however, still for Merino grades, to the detriment of crossbreds.” In a later report the firm states that tho announcement of the new tariff duties had occasioned surprise and disappointment in Yorkshire, where at least 30 to 33 per cent, was generally expected. Representations were being made for reconsideration. When the tariff was finally fixed, whatever the rate, it would remove the uncertainty that had definitely hindered the placing of contracts and would give scope for fresh negotiable business.