THE PRICE OF WOOL

King Country Chronicle, Volume XXV, Issue 3371, 29 September 1931, Page 7

THE PRICE OF WOOL

ALARM IN AUSTRALIA.

Sydney, September 17

In view of the state of the wool market it is not surprising that proposals should be advanced for the curtailment of sales by at least 25 , per cent. The present prices are clearly ruinous to the industry, for as has already been pointed out they do not nearly cover the cost of production. And what is more serious a recovery of the market is not in sight. Of course, Australia realised, in view of the decisions of the Empire Wool Conference held in Melbourne this year, that it could not act by itself, and for that reason it sought the views of New Zeaalnd and South African interests. The Australian Wool Growers' Council has also been in touch with its London representative, and its decision will probably follow the London sales, which opened this week. The average price realised over all centres for greasy wool in August was only 6.94 d. per lb., and the average price per bale £9 lis. 7d. The average price in Victoria from Ist July to 31st August was only 6.41 d. per lb., or £8 ss. 7d. a bale. Since the end of August the position has been thoroughly depressing, and there is no immediate outlook of an improvement in prices. As a matter of fact, expert opinion is that the wool market has not yet found its level, and there are many who predict a further fall in prices as the season advances. At the Sydney sales last week, Belgium, France, Germany and Italy continued to mark time, buying in a desultory fashion only such sorts as pieces and bellies, which descriptions, in the lack of any serious support, have been difficult to sell. The percentage of sales showed some improvement, though the withdrawals were still very heavy. Bradford and Japan have been the mainstays of the market so far, especially where the better class of fleece wools are concerned. In this section they have secured practically everything, except a few lots that have fallen to the local mills, whose competition, though not strong, has been a useful factor in a market desperately in need of all the competition it can get. Officially the market remained strong at the rates which ruled during the previous week, but several growers maintain that there has been a drop from 5 to li per cent, on a majority of the offerings.