WOOL MARKET REVIEW.

Manawatu Standard, Volume LIX, Issue 47, 24 January 1939, Page 5

WOOL MARKET REVIEW.

DEMAND MAINTAINED. POSITION OF STOCKS. The demand for wool has been maintained, competition being well distributed, but no general advance in the market has been recorded. Dcspito the heavy sales of raw material .made during the pust, iWo months, no sign exists of any undue accumulation of stocks in consuming countries, reports Winchcombc Carson, Ltd., Sydney. At Uie close of November, stocks of tops in France and Belgium were slightly higher than a year before, but both those countries have since that time purchased good quantities of (lie staple, that action indicating that the supplies held were not disturbing to iniilinen. At the close of November, stocks of wool in Yorkshire were 16,C00,C001b greater than a year pteviously, but were 5,000,00011> less than at the corresponding period of 1936. Those figures show that, though there are no great surplus supplies to depress the market, no marked shortage exists which would he likely to lorcc prices upward to an appreciable degree. With the large quantities of wool carried over at the close of last season and tlie current season's production, the supplies of wool available for consumers are slightly greater than a year before. Actually, tile total production of woo! _in Australia, New Zealand, South Africa, Argentina and Uruguay is estimated to be 45,000.00011), the equivalent of 150.000 bales of Australian weight, less than in 1937-38.

Of 1 ITo producing countries mentioned, Australia is the only one which displays a decrease in her clip. If other countries bad shown a■ reduction and a more normal carry-over had keen recorded, the supply position would probably have torcod values.

Under prevailing circumstances, a. sharp revival in world trade is necessary to produce decided improvement, in prices. That development would stimulate competition and, if it went far enough, would make wool supplies short. The stability seen in values over many months supplies evidence that the present range of prices is regarded as sound. It is not sufficiently high to produce profitable returns for growers, particularly in the many areas of Australia which have grown a smaller weight of wool a. sheep. Trade in a number of countries lias of recent months shown a better tone, which lias been reflected in the inquiry for the raw material. Meantime, growers in Australia, South Africa, New Zealand, and South America are wisely meeting the market. AUSTRALIAN WOOL CUP. RECEIPTS LOWER. Returns issued by the National Council of Wool Selling' Brokers of Australia show that from July 1 to December 31 sales of wool in the principal selling centres of the Commonweal Ih totalled 1,395,110 bales, which realised £18,595,895. Compared with the corresponding six months of the preceding season Uie quantity sold shows an increase of 198,252 bales, and the amount realised a decrease of £2.432,226.

The greasy, and scoured wool sold averaged £l3 6s 7d a bale, or 10.59 d a lb, compared with £l7 11s 5d a bale, or 13.97 d a, lb secured a year before. During December the greasy wool sold averaged 11.03 d a lb, compared with 13.28 d a lb obtained in December, 1937. The figures herewith show the quantity of wool sold, the amount realised and the average a lb secured during the half-year of five cxjiiaons :

During the half-year ended December 31 receipts of first-hand wool at the stores in the principal Austialian selling centres totalled 2,265,662 bales, a decrease of 183,735 bales compared with the previous season.

At December 31, 1,126,580 bales were in the stores unsold, being 192,643 bales less than at the close of 1937.

Balci. Amount. £ Average a lb d. 1934 ... .. 1,255,582 15,795,332 9.75 1935 ... .. 1,473,091 25,127,119 13.64 1936 ... .. 1,425,701 CO CO CvJ lO B-* eg 15.32 1937 ... .. 1.196.853 21,028,121 13.97 1938 ... .. 1,595,110 18,595,895 10.59