PROSPECTS FOR WOOL.

King Country Chronicle, Volume XXVIII, Issue 4608, 11 October 1934, Page 4

PROSPECTS FOR WOOL.

Wool growers of the Dominion will have their attention focused on the local wool sales which begin at Auckland on November 22nd. What the prices will be at the opening sale is most difficult to prophesy, but some indication may be given by the London sales which begin a week before those in Auckland. A few weeks ago the outlook for wool was far from encouraging. The fact that Germany had withdrawn from the market was bad enough, but with the unsettled state of the international position the prospects of anything like a return of the average prices of last year were very doubtful. It can be said, however, that the position has somewhat improved of late. Although officially Germany is off the market, yet purchases are being made in Australia and London on account of Germany, and this will help to strengthen the demand. The statistical positio'n is all in favour of sellers. Stocks are generally believed to be running low in Great Britain and on the Continent, and wool will be wanted. There is a big demand for wool in Japan. Taking the Bradford tops market as a guide it will be found that for some weeks past the tops made from the coarse wools which predominate in New Zealand production have fallen in value by far less than those made from fine wools. For instance, on May 31st Bradford quoted lid per lb. for 40's tops; 16%d for 50's, 31V 2 d for 64's, 34d for 70's; but at the close of business last week the quotations showed a fall from the above quotations of 6%d per lb. on 70's, Sd oh 64's, 3d on 50's, and but 2%d on 40's—the coarser kinds of wool tops. Taking a general view of the situation, the outlook for wool has shown an improvement the last few weeks, and there is now some cause for more optimism for the sales this season. Advices received from Adelaide yesterday show slight advances in prices, while prices at Melbourne and Perth were firm. A strong demand at Adelaide from German and Japanese buyers gives a most reassuring tone to the sales.