PRICE OF WOOL

Hauraki Plains Gazette, Volume 47, Issue 2669, 13 September 1937, Page 3

PRICE OF WOOL

CAUTION AT BRADFORD TOP MARKET STALEMATE USERS FIND FIGURE TOO HIGH. The Bradford wool trade has become conservative in its buying activities at present. In the top market, particularly, neither buyers nor sellers are disposed to enter with purely speculative forward buying purely forward commitments, and so much caution is exercised that the position is temporarily a stalemate. For the time being, it is said that business of a substantial scale is impossible in view of the wide gap between the current cost of raw materials and the prices which the users of tops are prepared to pay. It is difficult to say how long this position will last. It is believed that the time is coming when the real test is going to be between the cost of raw material and the need for business to keep machinery employed. At present there is a good deal of difference between the position of various firms. There are spinners who are well employed and who have work in hand to keep them busy for a considerable time ahead. Moreover, they are' getting a fair amount of new business, mainly on home account. Consequently they are not inclined to make concessions on quoted rates. They tell prospective buyers that until they see some prospect of cheaper wool or tops they are not inclined to accept less money for yarns. But, on the other hand, there are firms, especially those who are showing anxiety to obtain business to keep machinery employed.

These are the firms who are the weakest sellers; they will accept appreciably lower prices than their competitors who are better placed. The market price is the price at which one can buy, and these weaker sellers in tops and yarns are the firms who are picking up most of the moderate amount of spot business available. It is argued by the “bears” that in the long run the machinery position will be the deciding factor and that wool cannot indefinitely continue to command prices which cannot be passed on, In the meantime, however, wool £eems to be on a sure foundation and there does not seem to be much prospect of relief from a price point of view until th® plentiful production of the coming season is on the market. English Wool Price.

Bradford prices for English wools have been quite out of joint with the country fairs, and it has been difficult to sell any quantity in Bradford at a price in line with current costs in the country. The shortage of imported preparing wools has caused topmakers to buy on an unusually large scale when the stronger types of English wool have been on offer and that is why Lincolns and similar wools have shown such a big advance on last year. Buyers have appeared in some centres who have not previously been seen there and competition has been unusually keen. Bradford merchants have bought sparingly, but it is evident that sooner or later Bradford prices will have to be adjusted more into line- with country prices. Wool is selling freely and farmers are putting their full supplies on the market in order to take advantage of the pro- , fitable prices now being paid.