WOOL MARKET

Hawke's Bay Tribune, Volume XXVI, Issue 282, 12 November 1936, Page 5

WOOL MARKET

World Consumption Increase SEASON’S PROSPECTS’ Dealing with the prospects of the 1936-37 selling season, Dalgety and Co., (Ltd., in their “Wool Circular,” state that it is pleasing to bo able to report that not since pre-depression days have the unsold stocks of wool on hand been so light; the carry-over, not in New Zealand, but throughout other wool-producing countries, is a email one, and in this respect the trade is able to face the coming season with confidence, though, of course, there are other factors which occasion misgivings, such as the troubled state of affairs in Europe and Australia’s present difficulty with Japan. An important feature of the present wool position is the increased consumption in the United States. Last season she took larger quantities from oterso sources than for a number of years, and if she continues to consume wool at anything like the rate she did in 1935 she should require to import even more in the current season,- as in that year her domestic clip was supplemented by a big carry-over which does not now exist. Russia is also consuming more wool, and is becoming an important buyer in the London sales. We are hoping that in the near future her operations will extend to the Dominion sales.

Owing to Japan’s difficulty with Australia, it is her intention to buy a much larger quantity of New Zealand wool this season, and with the' restrictions lifted Italy should bo once again a buyer at our sales. There is every indication, too, of a better inquiry from Germany. These are factors which should help to offset unfavourable Continental and other influences, and with the London and Australian markets firming we should be able to look forward to very good selling conditions for the coming season, as offerings will be smaller and the comparative shortage of supplies in users’ hands should make for a strong demand.

It is really remarkable how firm the market is keeping at. present, despite the unsatisfactory state of so much of Europe and the anxiety with regard to events in Spain, with their possibilities of international complications. In the old days the market would probably have been disorganised, but the trade now is so used to crises that there is a tendency to disregard them as much as possible. Prices ruling at the close of the September series of London sales showed a decided improvement on those of 12 months ago. The outstanding features of fhe 1930-36 36 season were the solid and continued demand for all qualities of wool submitted and the regularity of prices throughout the season. These showed a marked improvement on the previous season’s level, and generally speaking left a margin of profit to the producer.

AUSTRALIAN MARKET. An uncertain stage in the season’s Australian wool sales has almost passed, states a report from Winchcombe. Carson, Ltd., Sydney. In early catalogues faulty wools are particularly plentiful. From now onward offerings will include a greater proportion of spinners’ types, and that circumstance should assist in promoting market stability. Abroad and locally confidence in the future of wool prices is expressed, and good reasons exist for the prevalence of that opinion. Many years have elapsed since Australia has experienced a wool market similar to that now prevailing with Yorkshire and the Continent’providing the great bulk of the competition. Japan was a very influential competitor from 1921-22, when she bought 196,918 bales, to 1935-36, when the total reached 785,469 bales. In pre-war times her puichases were not large, being only 20,500 bales in 1913-14.

WORLD CONSUMPTION. The existing selling circumstances with wool passing freely at satisfactory prices and Japanese competition absent in the Commonwealth illustrate the ramifications of the wool industry and supply evidence that world consuriiption of the staple is adequate for the supplies available. The American elections took place this month, and now that they are over an increased demand may be expected from that quarter. x The present position is gratifying in view of the increased output of artificial fibres, particularly staple fibre. The latter is finding use; in fact, in Germany, the supply of it has been rationed owing to production not keeping pace with the demand. Wool is also rationed in that country, so the German textile industry at the moment has a double curb on its activity. RAW WOOL SHORTAGE. The raw wool shortage, however, is the most pressing problem. Need for it has resulted in a marked increase in the use of ' woollen rags. But Germany has bought wool in Australia with fair freedom since this season opened. Activity on her part and larger buying for Prance and Italy have caused a general regain m Continental influence as a buyer in the Commonwealth which has done muc 1, to offset the loss of Japan as a competitor, which, we hope, is only temporary. Facts available to date do not support the idea that the use of staple fibre has resulted in a decline in the use of wool. In some departments of the manufacturing industry, particularly hosiery, artificial fibres have displaced the natural fibre. In other directions they appear to have assisted wool consumption by aiding in the production of more attractive and cheaper goods and by that means stimulating sales.