Wool Prospects

Manawatu Times, Volume 60, Issue 277, 23 November 1935, Page 4

Wool Prospects

On Tuesday next, the 26th inst., is an event that in the eyes of many farmers almost equals in importance that which occurs the following day—the ooening sale of the wool season at Auckland. The prospects for this sale are reminiscent of those for the first sale of 1932 which was followed by the extraordinary January boom. Of late reports have streamed in, giving a most favourable impression. It is, however, necessary to realise that prices have been so low for so long that considerable percentage rises can talco place without wool making a truly good price. A recent London report advises that medium crossbred, 44/46’s, made Sd at the November opening, compared with 74d at the September closing. Doubtless this was last season's wool. There are indications that .this class of wool may make 9d this season. That is not a high price, but it -would bo welcomed after the years of excessively low prices. Tho world has made great recovery economically and business is now upon a much sounder basis than when wool boomed three years ago. New urice levels now attained are more likely to be held than at that time and may even serve as a base from which to rise to higher ones. One of tho most powerful and one often overlooked factors is the American buying strength. The Yorkshire Observer of October 18 reported that American purchasers had been doing a big business in Yorkshire, not only in homogrown wools, but also in New Zealand wools. Practically all the exports consisted of crossbred “carpet” wools, which are admitted free of duty in tho United States, provided that tho importers prove within three years that the wool was actually used in carpets or similar goods. Tho Yorkshire exporters believo that this wool is going into consumption, little of it being bought by speculators. From 1920 to 1930 almost half tho wool entering America was utilised in the manufacture of carpets and rugs, it -was estimated.