THE WOOL TRADE

Manawatu Standard, Volume LV, Issue 197, 19 July 1935, Page 6

THE WOOL TRADE

LOWER RETURNS EOR 1934-1935. LARGER CARRY-OVER. In their review of the 1934-35 wool season irt New Zealand. Dalgety and Co. ; Ltd., state that “tlie present unsatisfactory prices must be attributed, in major part, to national restrictive trade policies, together with embargoes on wool imports, the outstanding example being the embargo imposed by Germany. Future prospects for improved trading are a little more encouraging, and although prices for crossbreds are below cost of production, indications for a slight increase in prices during the coming season are noticeable. “It is fully recognised that the Dominion wool trade can be restored to prosperity only through improvement in economic and financial conditions overseas. Cost of production has been cut to the lowest, and by no stretch of imagination could further economies be practised which would bring costs down sufficiently to allow wool to be profitably produced at tlie present low level of prices. Unfortunately this year many growers refused to meet the market, with the result that a fairly heavy carry-over has to be recorded, 164,411 bales as against 61,496 bales a,t June 30, 1934, viz., 93,148 bales in brokers’ stores and 71,263 in growers’ sheds. “During the selling year German competition, owing to trade restrictions, was sadly missed, especially in the North Island, for the fine shabby wools which are eminently suitable for the German trade. Recently two German representatives, who are interested in the wool-manufacturing trade, have been in the Dominion endeavouring to make arrangements for next year’s business. Their aim was for a barter agreement to be consolidated, but it is very doubtful indeed if our Government will move in that matter. “Speculative buying has been noticeable all through the selling year, especially at the early round of sales. | Much of this wool is still held in the Dominion, and whether it will be shipped for sale in London or marketed locally during 1935-36 depends en-1 tirely on how prices rule. Although low prices have been the order of the day, it is somewhat remarkable how steady they have been, the fluctuation from sale to sale being small, as shown by undermentioned figures : Avcracro Average per lb per bale

It is remarked that in the April sale there was a much larger proportion of oversized packs than at any other auction, which to some extent explains the higher average per bale. The quantity of wool sold in New Zealand during the last two seasons compares as follows :

1933-34 1934-35 Dales Pales Greasy 648.203 478.253 Scoured 1.233 208 Slipe 1.252 1,336 Total 650,688 479,797 Shipments overseas on account of growers last season were:—Greasy, 78,647 bales; scoured, 14.241 bales; slipe, 788 bales; a total of 88,676 bales. LARGE INCREASE IN CARRYOVER. The hold-over of greasy wool at the end of last month is cotimated as follows:—Held in brokers’ stores, 93.148 bales; hold by growers, 71.263 bales, a total of 164,411 bales, compared with 61,496 bales at the end of June, 1934. Scoured and slipe wool held over at the end of last month was estimated at 22,268 bales, making with the greasy

wool a total carry-over from the 193435 season of 186,679 bales. The production for last season is given as follows: —Greasy wool, 613,756 bales; slipe, 88,800 bqles; a total ol 702,556 bales. The following table gives a comparason of the results of the Dominion sales for the last two seasons:

1933-34. 1934-35. Bales sold 650,688 479,797 Not weight lbs 226,590,295 164,618,251 Weight per bale, lb 348 343 Gross Value ....... £10,451,565 £4,486,480 Average per bale ... £i6 1 3 £9 7 0 Average per lb ... 11.07 d 6.54 d The following table shows the bales sold and the average prices realised in the North and South Islands respectively : Av. Avg. Wght per per per Bales halo - lb. bale Island. sold £ s d d lb. North ... 263,783 8 14 3 5.84 358 South ... 216,014 10 2 8 7.49 325 N.Z. ... 479,797 9 7 0 6.54 343 The distribution of the wool sold in New Zealand during the 1934-35 season is shown in the following table: Bales United Kingdom 203,753 Japan, China and India 29.500 France 84.221 Germany and Austria 28,561 Belgium and Holland 19,333 U.S.A. and Canada 20,425 Italy and Switzerland 9,366 Russia, Norway and Sweden 7.300 Poland and G zec h° s lovakia 4,216 S]min and Denmark 2,000 Local manufacturers 27,638 Local scourers ; - 32,484 Australia and Tasmania 11,000 479,797

<1 £ s. cl. December (1934.) ... .... 5.983 8 17 9 January (1935) .... 6.355 9 14 1 February .... 6.188 9 2 9 March .... 5.717 8 112 April .... 6.557 10 0 10