FARMING AND COMMERCIAL

Manawatu Standard, Volume LIII, Issue 256, 26 September 1933, Page 5

FARMING AND COMMERCIAL

JAPAN’S DEMAND.

\ FOR AUSTRALIAN WOOL. INFLUENCE ON INDUSTRY. One of the most important developments in connection with the Australian wool industry has been the remarkable expansion in the Japanese demand for wool, says Dalgety’s annual wool review. During the last three selling seasons the expansion has been specially gratifying, and tho Australian woolI grower owes a debt', of gratitude to the | Japanoso buyers for having sustained the i market throughout many a critical period. ] It is only a comparatively short time since Japan, was looked \upon as tho “Cinderella” of wool-using countries, and the opinion freely expressed Was that its textile industry could not hope to compete with those of old world countries,! who could boast a century’s experience ’in \tvool handling. To-day, however, Japan ranks as tho second largest buyer of wool in Australia, and has held that position for tlireo consecutive seasons. \ Prior to the commencement of the 193233 season it was freely predicted that the Australian sales would not be able to count on the same strong demand which had led to record purchases in 1931-32. For one thing, it was claimed, that mlicit of that buying had been. speculative owing to the cheapness of the raw material and that there was a big accumulation of unusuod stocks in the East. For another, it was stated that owing to tariff restrictions having lessened imports into Australia of Japanese goods a big proportion of the wool demand would be switched to South Africa. It was plain, also, that a change had come over tho financial position and that the wool wa costing the Japanese user more. Experience has, however, proved \ tha tho cheapness of the raw material was, no the sole deciding factor. The Japaneso 1 , dc mand came into evidence early, and wa vigorous and sustained, dominating th market frequently, and was well continue! throughout, leading ultimately to evoi greater purchases than tho preceding sea son. To some extent the wool bought in Aus tralia for the Japanese mills may take th place of wool formerly purchased- by OtliG countries who exported goods to Japan but the main expansion is duo to the in creased use of woollen clothing. It was par tic-uarly fortunate that this expansion shout take place during the years of depression ns it helped to sustain the wool market Prices have been low certainly, but with out this Eastern outlet one wonders whethe it -would have been possible to dispose o a record production and where jrrices wotiii have sunk to. Time after time the Easter] buying saved the situation and the newe competition filled a very useful gap in 1931 32 when the Continental buying tvas beloi normal. From the Australian point of viev tho Japanese competition is all to the good becauso it is an added strength which i not present in the terminal markets. BIG INCREASE IN BUYING. Tho article reviews the growth of Aus tralia’s wool trade with Japan since it inception in a very small way. Then cam the war which revolutionised tho Japanos industry. The Japanese purchases in Aus tralia during the first year of the wa jumped from 20,000 to 82,000 bales, ant the next year to 113,600 bales. The appraise ment scheme hit- Japan hard, for the Japan ese quota was cut down, forcing them ti buy a big proportion of their supplies else where, especially in South Africa. Whci auction, sales were at last resumed Japai came into tho picture much more proinin ently, and the recent progress has beet truly remarkable. Given below are tin figures of the purchases in the Common wealth and Now Zealand on Japanese ac I ebunt since 1920-21, when auction sales wer< resumed after the appraisement scheme:—

The figures of tho last three seasons reveal a remarkable turnover, and tho benefit to tho woolgrowcr from the record developments cannot be over-estimated. Iho Japanese demand has boon one of tho big factors in pulling tho trade through the years of depression. Without it, it is difficult to imagine what would have happened to the increased production marketed. . , In the 1920-21 season, Japan ranked seventh as a buyer of Australian wool, taking 4 per cent, of tho quantity sold. For tho last three seasons she has ranked second, taking 18 to 20 per cent, of tho total offerings. WOOL CONSUAIPTION IN JAPAN. The consumption of wool in Japan, although it has shown a very remarkable expansion, does not by any means represent the ultimate, says Dalgety s \\ 00l Review. Indeed, it has been predicted by those who aro qualified by first-hand knowledge to express an opinion, that the time may not bo far off when Japan will absorb a million bales a year. All of this may not bo secured in Australia, but tho greater portion of it is likely to bo bought at Commonwealth centres. At present the quantity of clean scoured wool used per head in Japan is only about Ulb, and the expectation is that this figure will bo doubled before long. When it is remembered that the population of Japan exceeds 90,000,000 and that the ohango-over to woollen clothing is steadily developing, credence can be readily given to the prediction. The imports of wool into Japan for tho ten years 1922 to 1931 were as follow: — Year. ft 1922 67,457,733 1923 57,775,200 iq24 59,513.335 1925 ::: 70,145,007 1926 73,054.134 1927 99,238,934 1928 115,696,434 1929 107,948,668 1930 115,560,001 1931 .. 190,571,601 It is estimated that fully 90 per cent, of the wool came from Australia. The wool textile industry in Japan is young and vigorous, and, while no one can' say what unforeseen setbacks may occur, the prospects of an increased demand are very encouraging to Australian wool-growers.

COURSE OF WOOL VALUES. N.Z. SALES FOR THIRTY YEARS. The following tabic, taken from Dalgety’s annual wool review shows the gross value and the average price per bale of the wool sold in New Zealand during tho last 30 years:—

i FLEECE DENSITY. t ; GROWTH OF WOOL. 5 Investigations into wool growth on stud 5 Merino rams at present in progress at the 1 Grootfontein (South Africa) School of i Agriculture by Messrs B. Bosman and G. • S. Marc, sheep and wool research officers, have brought to light some surprising - facts in connection with density of fleeces. ! Sixteen rams of different types, ranging r in age from under one to over six years, , have been under examination. The fleece ■ weights in grease of these ranged from t 13.6 to 32.41 b; and the number of fibres 1 per square inch from 29,500 to 52,300. As- ,! suming that tho skin area is twelve square . feet, the latter means that a stud ram may • have from 60 to 90 million fibres constantly • growing at an average rate of 4-10th inch os E per month on its skin. 1 The density of tho rams examined varied i from 1.45 to 2.90 per cent., which means ' that 1.45 to 2.90 per cent., of tho skin area • was occupied by wool fibres. It was also r found that the wool fibres, plus their sweat i and fat glands, occupied only from 5 to 8 , per cent, of the skin area, and therefore > at least 92 per cent, of tho skin was bare. As ■ tho research officers point out, these findings are always most incredible to the practical man, for by hand and eye methods . a fleece presents a compactness which it , appears impossible to correlate with a 2 or i 3 per cent, density. They add, though, that ; the fleece when examined is usually in the . greasy state, and the compactness is mostly I due to wool grease, suint, sand and air, and is aided by the springy feel of wool. Much of tho donee feel ie diminished when i the fleece is freed from grease and adhering matter. Tho question arises whether tho , Merino breeder has evolved maximum den- , sity. Does 8 per cent, skin area occupied . by fibres and glands, they ask, represent , tho utmost producing capacity of tho , Merino ? BUTTER AND CHEESE. LONDON MARKETS QUIET. Joseph Nathan and Co., Ltd., have received from London tho following cabled advice, dated September 23: —New Zealand butter: Finest, 108 s to 109 s per cwt.; first, 105 a to 106 s. Now Zealand cheese: White and coloured, 54s 6d per cwt. Both markets quiet. LONDON MARKETS. HIGH COMMISSIONER’S REPORT. Tho Department of Agriculture has received the following cablegram, dated September 23, from tho High Commissioner for New Zealand, London : Tallow. —Market quiet at about last quotations. Hemp.—Manila market dull and earner. Closing value “K” grade far October-De-cembor shipment, £ls 2s fid. Sisal market easier. No. 1 for January-March shipment sold at £l7 15s; closing sellers for OctoberDecembor shipment, £l7 10s. New Zealand market unchanged. Common grade offered at £l3 7s 6d, but no demand. _ \ Eggs. —Market quiet. English national pack, 13s to 18s; English ordinary pack, 14s 6J to 16s; Danish, 10s to 13e; Australian, 141 b to 161 b per long- hundred, 10s 6d to 11s 9d. Apples.—Steady demand but no rise in prices. HOT-WEATHER RATIONS. REDUCED LIVE-WEIGHT GAIN. “Some years ago when I was weighing some hundreds of pigs every week I found during a heat wave that the weekly increase was very considerably slowed down, especially among tho bigger pigs—those over 1001 b,” writes the well-known British authority, Mr T. A. Stephens, in tho Farmer and Stockbreeder. “This gave me an idea which I tested out. I had one lot. of 24 pigs all more or less the same weight, so I divided them into two lots. They were then getting 61b each day of food. One lot I continued on the full 61b ration and the second lot I reduced to Two very hot weeks followed, and during these two weeks the reduced ration pigs made practically the same increase (the average was Bilb for the full ration lot and BRb for the reduced ration lot), as the others. “While in the ordinary way I should not take much note of a single experiment covering two weeks, this one confirmed my view that in hot weather pigs will not profit by heavy feeding. I now make it a general rule to reduce the amount of food fed to porkers and baconers, and also to growing stock during periods of excessive heat.” FARMING NEWS. RURAL RAKINGS. It is reported that there is an alarming increase in the rabbit population of the Waitomo Valley. In tho present season to date only 9b,UaU sacks of potatoes have been shipped from Lyttelton, as against 142,586 last season, 247,997 in 1931. and 279,509 in 1930.' It would seem from these figures that Canterbury’s dependence on the North Island for an outlet is rapidly approaching extinction point (savs the Christchurch Press), for 100,000 sacks ‘represent little more than 10 per cent, of tho North and Mid-Can-terbury output The prospects for a much earlier and more profitable season for Gisborne graziers are very bright (says an exchange). Killings at the Kaiti feezing works a.ro expected to commence three or four weeks earlier than last year Shearing has commenced in several sheds in the Gisborne district and is expected to be in full swing in about a fortnight. The motor ship Port Alma, which arrived at Auckland from British ports this week, brought three pedigree Clydesdale stallions to be landed at Dunedin. Birkhall Hiawatha is a four-year-old, while Roseprint and Craigie Crest are each two years. Mr R. Hamilton, of Kelso, Otago, who brought the horses out, said horse breeding was 'em the increase in England, and there was a good demand for animals of good working strain. The prices of pedigree Clydesdales had increased, and this breed 1 of horses was in great demand by overseas , purchasers. '

SYDNEY STOCK EXCHANGE. BANKS FIRMER. SYDNEY, Sept. 25. On the Sydney Stock Exchange to-day, although there was no very pronounced change in prices, the market remained exceedingly active. Here-and-thero slackness was due to profit-talcing. Gilt-edgeds wero rather overshadowed, but all bond issues retained their strength. There was an excellent inquiry for tin shares and the better-class trading concerns and also for banks, which wero firmer. This afternoon’s sales included: Commercial Bank of Sydney, £lB 10s: Commercial Bank of Australia, 17s 3d; E.S. and A. Bank, £6 2s 6d; Union Bank of Australia, £lO 17s fid; National Bank of Australasia, £5 paid, £6 17s fid; Queensland National Bank, £5 13s. Colonial Sugar, £59 17s 6d; A.P.* Assurance, 11s sd; Howard Smith, 12s 6d. Berloi, 27s 6d; British Tobacco, 375; Dun-lop-Pcrdriau, 19s 6d; ditto, pref., 33s 6d; Goldsbrough, Mort, 19s Anthony Hordern, 11s sd; ditto, pref., 20s; Automatic Totes, 16s 7id; David Jones, 33s fid; Newcastle Gas, C, 12s Id; Standard Cement, 16s 6d; Australian Iron and Steel, 17s 4id; Electrolytic Zinc, 25s 9d; Nestles, prof., 33s 9d; Henry Jones, 38s 4J,d; Morris Hedstrom, 20s; Wilcox Mofflin, 8s 3d; Winchcombo Carson, 235; Hume Pipe, 10s fid; Gibson and Howes, 245; Wunderlich, 225. Broken Hill Proprietary, 40s; South Broken Hill, 695; ditto, Now Zealand delivery. 695; Kuala Ivampar, 9s; Mt. _ Morgan, 50s; Bulolo Gold, 96s 6d; Deposits, Is 9d. MELBOURNE, Sept. 25. Sales on the Melbourne Stock Exchange to day included: Commercial Bank of Australia, 17s 4d; Goldsbrough, Mort, 30s; Dun-lop-Perdriau, 19s sd; Alt. Lyeil, 23s fid; North Broken Hill, 90s. foreign exchanges. POSITION OF STERLING. (British Official Wireless.) RUGBY, Sept. 23. The following rates on foreign exchanges were current to-day, compared with par:

GOLD AND SILVER. LONDON, Sept. 23. Gold.—£6 13s sid per ounce, fine. Silver.—Cash, 18Jd tier ouuco; forward, 18 9-16 d. Sterling on Now York closed at 4.775 dollars, and on Paris at 79a francs. The price of gold decreased to £6 13s s£d per ounce line, a premium of 7jd over tho French franc.

CommonNew weal 1 11 Zealand Total. Bales. Bales. Bales. 1920-21 1921 22 .... . ... 40,554 196,918 10,868 40,554 207,7861 1922-23 .... 133,212 14,857 198,069 1923-24 .... 9.351 162,495 1921-25 203,027 12.729 215.756 1925-26 ' 215,149 7,800 222,949 1926-27 .... 239,481 7,981 247,462 1927-28 .... 329,887 21,114 351,0011 1928-29 345,263 20,056 365,319 1929-30 334,328 7.935 342,323 1930-31 .... 513,968 27,208 541,176 1931-32 .... 614,952 24,843 639,795 1932-33 .... 644,398 25,729 670,127

; Season. Bales. Gross value. £ Average per bale. £ s d 1903-04 .... .. 117,076 1,139,696 9 14 8 1904-05 .... .. 165,711 1,996,914 12 1 0 1905-06 .... .. 190,713 2,592,177 13 3 7 1906-07 .... .. 180,734 2,928,268 16 4 1 1907-08 .... .. 132,349 1,371,001 10 7 2 1908-09 .... .. 207,989 2,082,231 10 0 3 1909-10 .... .. 265,184 3,556,891 13 8 3 1910-11 .... .. 222,612 2,632,427 . 11 16 6 1911-12 .... .. 226,432 2,596,290 11 9 4 1912-13 .... .. 286,151 4,006,879 14 0 1 1913-14 .... .. 264,834 3,407,943 12 17 4 1914-15 .... .. 321,927 4,846,940 15 1 1 1915-16 .... .. 364,861 7,715,970 21 2 11 1916-17* .. .. 546,300 12,082,894 '21 18 8 1917-18* .. .. 581,531 13,264,698 22 16 2 1918-19* .. .. 627,831 14,755,247 23 10 0 1919-20* .. .. 580,093 13,627,918 23 9 10 1920-21 .... .. 198,641 2.360,017 11 17 7 1921-22 .... .. 467,381 4,207,367 9 0 0 1922-23 .... .. 476,966 7,930.942 16 12 7 1923-24 .... .. 503,896 11.623,924 23 1 5 1924-25 .... .. 462,795 13,537,344 29 5 0 1925-26 .... .. 491,582 8,262,847 16 16 2 1926-27 .... .. 513,461 9,208,318 17 18 8 1927-28 .... .. 543,712 13,004,200 23 18 4 1928-29 .... .. 575,632 12.217,382 21 4 6 1929-30 .... 5,130,897 12 1 0 1930-31 .... 3,558,587 7 19 10 1931-32 .... .. 475,135 3.571,776 7 10 4 1932-33 .... .. 576,224 4,327,692 7 10 3 *\Vool realisation scheme operating.

New York, dol. to £1 Sept. 23. 4.78 Par. 4.866 Montreal, dol. to £1 . 4.89 4.866 Paris, francs to £1 .. 78 3-32 124.21 Brussels, bcl. to £1 . 22.155 35.00 Genova, francs to £1 . 10.955 25.225 Amsterdam, florins to £1 7.67 12.107 Milan, lire to £1 58 13-16 92.46 Borlin, marks to £- . 12.955 18.159 Stockholm, knr. to £1 19.385 18.159 Copenhagen, knr to £1 22.4 U lo.ioS> Oslo, knr. to £1 19.90 18.159 Vienna, scligs. to £l . 29 34.585 Prague, knr. to £l 104.25 164.25 liel’fors, marks to £1 226.50 193.23 Madrid, pcs. t,o £1 .. 37 25.225 Lisbon, esc. to £1 102.50 193.23 Athens, drach. to £1 . 660 375 Belgrade, din. to £1 . — 276.31 Bucharest, lei to £1 . 525 813.60 Warsaw, zloty, to £1 . — 43.38 Rio de J., p. to mil. .. +41 5.899 B. Aires, p. to peso .. +45 47.62 M. Video, p. to peso ., *37 51 Calcutta, p. to rup. ., 18 3-64 18 Shanghai, p. to dol .. 15 3-8 — 11.-Kong, p. to dol. .. 17 1-16 — Y’liama, p. to yen .. 14 1-16 24.582 Batavia, florins to £1 7.65 12.107 “Nominal. f Official.