WOOL MARKET.

King Country Chronicle, Volume XXXIII, Issue 4803, 28 June 1939, Page 3

WOOL MARKET.

From a world viewpoint of the trade, June may be regarded as the between seasons month. By and large, wool is produced in the Southern Hemisphere and consumed, at manufactories, in the Northern Hemisphere. So at a season’s close we may take stock of our situation and prospects. The past season, and also the one before that, returned growers in all lands a poor reward. Prices may be considered as having been a full 20 per cent, below remunerative level. And that 20 per cent, represents all the difference between profit and loss. There is seen, however, one good feature to the rather gruelling past, and that is the fact that the wool produced has not been building up in unusual stocks; all has gone to current consumption.

The season ahead starts with a clean sheet. Also, prospects are for supplies no greater and possibly a shade lighter than seen for the season past. Australia being the chief factor in this regard, one recent estimate placed her clip at 6 per cent, below last season’s, approximately 180,000 bales short.

Prospects Ahead.

Prospects may be viewed as more subject to political than to physical influences; to international politics rather than to weight of offering versus strength of demand. As to the threat of artificials, this appears to be a deflating bogey. It is not to be ignored, but undue fear is not justified. For the wool with which New Zealand is really concerned, the crossbred fleece, we have much to be thankful for. While our price average dropped %d to y?d last season, our trans-Tasman cousins sold their merino, quality wool, at a 2%d a lb decline.

Australian sales now opening bring offerings not only of crutchings, but substantial clips of autumn-shorn fleece wools. Shearing in some areas was on a large scale last month. At one sale where 100,000 bales were sold only 9 3 jd was averaged, against 11 Vd a year earlier. It is understandable that among Australian growers there is pressure for a subsidy on wool-growing. The Graziers’ Association of New South Wales is asking for a Id a lb subsidy, when wool falls below 12d a lb for the average of Australia in any season. Against such a proposal, however, is a great weight of wool-pro-ducing opinion. In the Old World, the most noteworthy market feature is the rise in Bradford of crossbred tops; 70’s have not moved at all this year, 64’s and 60’s have risen Id a lb, !)B’s by but 50’s by a full 2d a lb.

These are now back to their level of December, 1937, at 19d a lb. This, after remaining steady for a full year at 17d. The rise noted came since June 1. Uniforms for the new British army have probably been the main reason for this.

Antwerp futures are unchanged on a month ago; %d a lb below two months ago, and Id below a year ago. These have not moved in sympathy with Bradford.

If wool at 20 per cent, below “a fair price” is felt to be depressed, let us realise that at that we are luckier than most producers of world commodities. Wheat is about 40 per cent, below its fair price level. Rubber is likewise and cotton infinitely worse off.

As a practical current interest to sheepmen, wool is of concern to-day only as regards purchase and sale of sheep; the wool yield in considerable degree determines their worth. At present, one can do little else than work on last season’s wool prices. In doing so there is little risk seen of paying too much, some prospect of gaining a small bonus.