PROSPECTS FOR WOOL.

Manawatu Standard, Volume LIV, Issue 281, 25 October 1934, Page 2

PROSPECTS FOR WOOL.

GERMAN BUYERS’ POSITION. A MATERIAL FACTOR. Per Press Association. AUCKLAND, Oct. 24. Prospects for the coming wool, season in New Zealand were discussed by wool-buyers who arrived at Auckland from England by the Rangitiki to-day. Although no definite predictions were made, there was a suggestion that the market for crossbred wools might hold better than that for finer grades, giving New Zealand something pf an advantage over Australia in this respect. It was admitted that the position might be materially affected by the instructions given to buyers operating on behalf of Germany. , One buyer said it was probable that there would be little or no competition from Germany throughout the 1934-35 season, as her present financial position meant that only very limited funds were available for the purchase of foreign exchange. Germany in the past had been one of New Zealand’s best customers, her purchases normally being about a fifth of the total wool offerings, while her consistent competition affected the prices ultimately realised.

“For some months past Germany has been unable to compete generally in the world’s wool market,” a buyer said. “However, she has made and will continue to make large purchases in South America, where payments have been made possible by the accumulation of a favourable trade balance of exports.” In her present financial position Germany could purchase only a small proportion of her normal wool requirements, the buyer continued. For resumption of buying she would have to wait until larger trade balances were available overseas, and in this respect German wbol manufacturers, who deplored the present prohibitive situation, contended that if New Zealand were to import more goods from Germany, purchases of wool from the Dominion could be continued. Statistics from 1930 to 1933 showed that Germany’s purchases from New Zealand had increased slightly, while the Dominion’s imports from Germany had decreased by 62 per cent. In 1933 Germany spent in New Zealand nearly eight times the sum that the Dominion sent to Germany.