THE WOOL CLIP

Hawke's Bay Tribune, Volume XXII, Issue 269, 28 October 1932, Page 10

THE WOOL CLIP

A. SMALLER PRODUCTION. Sydney, Oct. 19. Winchcombe Carson, Ltd., report:— New South Wales produces over 50 per cent, of the wool growth in Australia. It was estimated that the quantity of the staple shorn in the State this season would show an increase on he 1931-32 production. Indications, however, point to that expectation not being realised. In most of the early shearing districts the sheep cut lighter weights, and in many of the later centres the stock have produced 5 per cent less wool per head than twelve months ago. Last year numbers of owners certainly held low-grade locks, stained pieces, and crutchings in their sheds as the prices ruling for them at the time did not warrant sending them to market. Those supplies will be available this season, but as they consist of inferior grades, their sale has practically no bearing on the demand for the main body of the clip. It, therefore, looks probable that consumers will find that the quantity of raw material which they can buy in Australia during the current twelve months will not be greater than a year ago, and will possibly show a decrease. The South African clip is anticipated to total 900,000 bales, or similar figures to 1931-32, and the United States clip will show a small decrease. The three countries mentioned are the world’s chief producers of merino wool. As no increase in supplies will be registered a ready market for them should be assured. The world depression was at its worst during the first half of 1932. Despite that fact, practically the whole of the wool grown was readily absorbed, and the present season’s supplies have better prospects of meeting a more consistently keen demand than those of the preceding year. The use of wool is unquestionably being encouraged by the reduced prices at which the public abroad can buy goods. Serge quoted at one dollar 90. cents per yard in the United States in September, 1930, was selling at one dollar 35 cents last August. Such selling figures must eventually have decided effects on wool consumption, and sooner or later cause an upward movement in prices owing to the keener demand for raw material.