COMMODITY MARKETS AND TRADE.

Manawatu Standard, Volume LVII, Issue 194, 17 July 1937, Page 5

COMMODITY MARKETS AND TRADE.

LONDON WOOL SALES. (By “Penlcio.”) The London wool sales opened with a fall in values in some graues of up to about 7] per cent., but now the sales show that there has been a recovery, that the market is firm, and the demand improving. This serves to show how risky it is to forecast the wool market. The statistical position of wool is pronounced by experts to be good. By this it is meant that the visible supply of wool is just about, or just a little below, the demand; but while it is possible to compile production statistics with some accuracy, there is no possibility of reaching any degree of accuracy in respect of demand, which is intangible, which may weaken at any moment, or be diverted through the vagaries of fashion. The demand can only be estimated, and that is really a matter of guessing.

In any case the London sales are not altogether a satisfactory guide to the wool market, especially at this time of the year. The sales do. however, give an indication of the strength of the demand at the present, time. A safer guide as to the wool situation will be obtained at the sales in Australia which begin next month. At the Commonwealth sales representatives or agents of all consuming countries are present, including those of Japan, and the competition is far keener generally owing to the activity of Japan. But a new situation arises, because of the unrest between China and Japan. How will this affect Japan’s buying power? Moreover, how will it affect the factory manpower? Japan would naturally do her utmust to retain the customers she has throughout the East for her textiles. If she cannot carry on her wool textile industry there would he little hope of tier being able to continue her cotton and rayon industries, or even her silk industry, which is largely a cottage industry. With Japan’s competition et'en modified that would have an adverse effect on the Australian sales, ft is difficult to forecast the future of wool, for the market is so easily affected. TItADE STATISTICS.

'The Monthly Abstract for June gives details of the exports and imports of the Dominion for the five months to the end of May. The aggregate figures have already been dealt with, but the details are interesting. The quantity of butter shipped during the period amounted to 1,360,997 cwt, as compared with 1,164,858 cwt in tile corresponding five months of last year, ail increase of over 10,000 tons. It is quite certain that the season will close showing a substantial increase in the quantity exported. The cheese exported during the period was 763,1380 wt, as against 762,572 last year, the increase being only 566 cwt. The exports of mutton and lamb are interesting in view of the fact that out quota of shipments to Britain ha-s been raised by 110,000 cwt. For the five months of this year the lambs (whole carcases) exported amounted to 1,489,692 cwt as against 1,465.344 last year, and the mutton (whole carcases) amounted to 343,495 cwt against 429,752 cwt. The totals are 1,833,187 cwt, against 1,895,096 cwt, so that our exports of mutton and lambin the first five months of this year are 61,906 cwt less. The whole shrinkage, it will be noted, was in mutton. This, we should say, has been duo to the substantially higher prices obtained for wool, and the prospects of a continuance of high prices. That also accounts for the increase in the flocks. In 1933 when the slump was at its worst the number of sheep in the Dominion was 27,755,966, and the mutton carcases exported that year totalled 2,390,483, and lambs 8,840,130. The figures are to the end of April. At the end of April this year the sheep numbered 31.210,734 (interim figures) and the number of sheep (carcases) exported was 1,692.610, and lambs 8,770,630. Thus, compared with 1933, the export of mutton decreased by nearly 1 00,000 carcases, and the number of lambs by about 70,000, while the number of sheep has increased liv about 3,500,000. The wool exported during the five months of this year amounted to 669,300 bales as against 739,081, a decrease of 69,781 bales,* nnd the realisations were £15,501,196, against £10,440,282 in the same period last year, an increase of £5,060.916, which made all the difference to the economic recovery of the country. Sheep farming is now popular, nnd if wool prices continue firm in the next season there will be most likely some change-over from dairying to sheep farming. The imports for the five months ended May 31 were valued at £21,766,818 as compared with £16,426,787 in the corresponding five months of last year, nn increase of over £5,000,000, or an average of £1,000,000 a month. This increase is partly duo to higher prices, and ns they are still tending upwards the figures ’for the coming months will show greater increases. Imports of motor vehicles account for a substantial proportion of the increase. In the five months the number imported was 14 217 as against 12,742 last year, and the value £2,318,917 against £1.947,612, an increase of £371,300; with motorcycles, rubber tyres, motor accessories and petrol the increase is considerably more. For the five months the tea imported showed an increase of £42,000; whisky imports increased by £50,000; wine by £IO,OOO, cigarettes by £36,000, and tobacco by £SOOO. Drapery showed an increase’of £36 000; cotton piccegoods increased bv £196,000; carpets, linoleum, etc., by £40,000; silk and artificial silk piece-goods by £123,000; woollen piece-goods by £253,000; apparel and ready-made clothing by £355.000; hosiery by £70.000, from £73,000 to £l4B 000, or more than 100 per cent., which is not surprising, for more women and girls are at work, and on better wages, and able to spend a little more on their dress; boots and shoes show an increase of £116,000; sugar increased bv £83,000, canned fruits by £23,000 ; dried fruits by £27,000 ; dates by £8000; raisins and sultanas by £35,000; bananas by £5600; and oranges and lemons by £II,OOO. Prices of manufactured local goods are steadily advancing and so are imported goods; but if the former rise too high imports will increase.