THE WOOL POSITION.

King Country Chronicle, Volume XXIX, Issue 4694, 16 May 1935, Page 7

THE WOOL POSITION.

BETTER PRICES PROBABLE. The May-June series of wool sales in London which were commenced in Coleman Street this week have put a different complexion on the market altogether. Conditions'undoubtedly favoured sellers. Under the impetus of keen competition fine wools advanced by from 10 to 15 per cent., and crossbreds by up to 10 per cent. The cabled reports received in the Dominion are unanimous concerning the greatly improved tone of the market, and there is good reason to hope, in view of the existing statistical position with regard to wool, that the change for the better is no flash in the pan. In the face of such market strength it would seem more than advisable for brokers to make what arrangements they can for an additional sale in Dunedin in June or July for the purpose of cleaning up as much as possible of the large accumulation of held-over wool now in store and woolshed. An intimation from growers concerning their readiness to meet the market in the event of such an extra auction being provided might assist the Dunedin Woolbrokers' Association to make up its mind to move.

Reduced Clips.

The prospect of a smaller clip next season in Australia, the much-reduced clip of 640,000 bales in South Africa this season, compared with the original estimate of 730,000 bales for this year, and a production of 887,000 bales last yeai’, also a more rapid consumption of merino wool than was anticipated, have all tended to make consumers more eager for supplies than was expected some months ago, both for direct use by manufacturers and on speculative account. Latterly German has been seeking further supplies of treated wool in England. Her activity in that respect was a factor in the advance in prices experienced in December and January last, and is, no doubt, at present having some influence on the position.

English Stocks Short.

That raw wool stocks in Britain are low there appears to be very little doubt. According to an official report stocks in warehouses and depots in Great Britain at the end of February were 25 per cent, below those at the end of February, 1934. Stocks in railway and canal depots in Yorkshire, which reflect the position in manufacturing centres, were 50 per cent below the stocks at the end of February, 1934. It is believed, also that in European countries and Japan stocks are low. Some manufacturers are bare of wool. In Germany some woollen manufacturing establishments may be obliged to shut down because of depleted stocks.