PROSPECTS FOR WOOL

Manawatu Standard, Volume L, Issue 143, 16 May 1930, Page 7

PROSPECTS FOR WOOL

BETTER RATES PREVAIL. HOCK BOTTOM REACHED. I ARREST OF DECLINE. ® Suggesting that rock bottom had been reached in the wool market, and m that the persistent decline evident for M some time had been substantially aril rested, a Manawatu exporter informed H a “Standard” reporter to-day that u| the improvement in values at the Lonm <lon sales was a distinctly encouraging H feature, though much leeway had yet if' to be made up before the former poll. sition of the market was restored. Kf “The rise in the present series,” he i| stated, “is equal to about 10 per cent H on all classes, or, say, Id per lb.' In n: the January series at London, there |r.; was a sensational drop of about 25 per cent in values. This followed a Mi long series of gradual declines in values extending over nearly twelve W', months. During the March series in London there was a further fall of i;. approximately 10 per cent, so that the yft: present riso brings conditions back to Wthe January level. ALL CLASSES ADVANCE. “It is a satisfactory feature to learn ®Sthat practically all classes of wool, both Merino and crossbred, as well as ®'greasy, scoured and slipe, have parti'|l§cipated in the advance, which shows KHjthat there is a widespread improveMl’ment in the general outlook. Wool, of has still a very long way to go /'before it can recover to anything like /.?:the values current, say, twelve f|li|inonths ago, but the present rise is the 'Mfjfirst improvement which has taken /■-.’. place over that period and has halted the decline. “The total drop in prices during the iiK past twele months has been approximately 50 per cent, so that the recovery to tho extent of only 10 per cent j§§ still leaves a very wide margin. How--0 ever, it is a hopeful sign. In November, 1924, scoured fine ’ crossbred wool reached the peak of 481 d at London. By November, 1926, prices had dropped to 28d. In November, 1928, the rates advanced to 39d, and twelve months ago the value was 35}d. In January of this year prices had dropped to 19id, but since then there had been a decided improvement. “Most of the wool now being sold in London is on behalf of ownerswho have consigned overseas, while some has been sent forward by speculators who bought wool at the New Zealand sales. In addition, there is scoured wool from New Zealand wool scourers and fellmongers, and a slight proportion from New Zealand freezing companies, said the gentleman interviewed. “Since the drop in January ini New Zealand, there has been considerable speculation in wool, induced by the very low prices. Many operators purchased in the belief that the wool market had reached rock bottom and must recover. Their anticipations are, to some extent, being realised. There is a considerable amount of wool still being helchin sheds. Probably, a good deal of that will now be shipped to London or be held until the opening sales in New Zealand next season. FROZEN MEAT TRADE.

“The frozen meat position is at present unfortunately in a very unsatistactory state,” added the “Standard’s informant, “and there is little prospect of an improvement. As an indication of the extent to which prices have dropped, it can be stated that, in the middle of February last, best North Island lamb was selling at lid delivered, second quality at iOd, best North >:■ Island wethers at V-Jd, ewes at 6d, and ox beef at 6d. Since then the mar- | ket has declined weekly Up to May 9 last, when the ruling quotations were: ■' Best North Island prime lambs BJd, 6econd quality 7gd, wethers 4jjd, ewes T 3Jd, ox beef 4fd. This is equivalent 1* to a drop of 3d per lb. on prime lamb, [>j 2Jd on second quality, 3fd on wethers, p 3d on ewes (50 per cent.) and lfd on ! beef. However, for the first time since i February, according to a cable received to-day, there are indications of an im- : provement of |d per lb. for both lamb | and mutton, and that probably the | bottom of the market has been reacli- | cd, with prospects of a steady improve- !; ment in the future. | “The total shipments from Austra- [■ lia, New Zealand and South America "• for the three months ending March ! 31 show that there has been an increase of 663,000 carcases of mutton, and 1,015,000 of lamb, while beef remained comparatively the same. New Zealand shipments of beef increased by 59,000 quarters during the period October 1 to April 1, wethers by 410,000 carcases, lambs 491,000, and ewes 413,000. Those figures speak for themselves.”