The Farmer

Manawatu Times, Volume 62, Issue 3, 5 January 1937, Page 10

The Farmer

Wool Situation at Home JAPANESE OPERATIONS. United Press Association—By Electric Telegraph.—Copyright. LONDON, Jan. 2. Bradford is keenly awaiting Japan’s resumption of operations at the Australian wool sales. Most topmakers are quoting higher prices in anticipation of firmer markets, though they consider it would not be surprising if Japan bought only normal quantities in view of her heavy purchases elsewhere during 193(5. Confidence in the present price level is unshakeable, though it would be wrong to expect any startling increases in prices. Most buyers would follow a rise reluctantly, especially as wage increases have affected costs. Thus there is no danger of a repetition of the 1933 boom. The whole of the 1936-37 clip is likely to be absorbed during the current season. Carry-overs at the end of June may even show a reduction on the year. The Financial News considers the wool outlook as most healthy. It points out t?.at, notwithstanding greatly increased activity in the textile industry in most countries, stocks are smaller than in January, 1930. There is no danger of a scarcity of the raw material, but, also, there is no dauger of an unmanageable surplus.

The Bank of New Zealand, produce department, received the following advice from its London office under date January 1: Prospects for all wools at the first series of sales, commencing on January 12, aro favourable. A strong market is anticipated, and it is expected that prices for Merinos and crossbreds will advance a penny per pound. Wellington's January Sale The Wellington wool sale to be held on Monday next will b 6 the first to be held in the Dominion after the holidays. The offering will be 30,000 bales, as allotted by the New Zealand Wool Committee. Catalogues for this sale closed on December 23, with a great rush to get wool into the January-Feb-ruary sales w'hilst the market was in a keen buying mood. Subject to correction, the catalogues to be offered next Monday will bo in the following order:— Bales. Murray, Roberts and Co 4,IGS Levin and Co 7,45? N.Z. Loan and Mercantile .. 3,853 N.Z. Farmers' Distributing .. .. 4,901 Wairarapa Farmers 1,701 Wright, Stephenson, and Abraham and Williams 3,772 Dalgety 4,178 Bales 30,000 The catalogues for the February Wellington sale have also closed at 30,000 bales. Sales will be held in Napier on January 16, and Wanganui’s first sale of the season will be held on January 21. The 1937 series of London sales will open on Tuesday, January 12. Australian Clip A BUOYANT MARKET. If current prices of wool are maintained the Australian Mercantile, Land and Finance Company, Ltd., in its latest wool report, expresses the opinion that it would not be unreasonable to expect the average price of Australian greasy wool this season to compare favourably with the average of 1933-34. It may eveu reach the 1928-29 average of 16.44 d per lb., but it should not be overlooked, when making comparisons of this nature, that the Australian pound in 1928-29 was worth practically as much as sterling. Raw wool was now bought in the Commonwealth for direct shipment to 30 foreign countries. Wool requirements of countries within the British Empire were growing consistently. Crossbred prices bad almost reached parity with those of December, 1933. Unless values declined in the remainder of the season, the proceeds of the clip should exceed £50,000,000. There appeared to be scarcely enough wool to meet the requirements of manufacturers. Synthetic fibres were not competing with wool to the degree that was feared. It has been asserted by textile specialists that synthetic fibres were adjuncts to wool rather than competitors, but judicious advertising of th’e qualities of wool should be advocated to ensure that the popularity of woollens was maintained, and the markets for the commodity strengthened and expanded.