Drought May Affect Australian Wool Clip

Manawatu Times, Volume 63, Issue 82, 7 April 1938, Page 9

Drought May Affect Australian Wool Clip

“NOT A PROSPEROUS SEASON” Per Press Association. AUCKLAND, April 5. Woolbuyers operating for overseas interests in Australia during the season just ended were among through passengers by the Monterey from Sydney. The view was generally expressed that the wool season had not been a particularly prosperous one for Australia because of the absence of American buyers from the market. Fears were also expressed for the quality ol next year’s clip because of the drought now being experienced in Australia. 11 was stated that unless rain soon fell the clip would be a poor one. The buyers included Mr. J. Booath, Sydney, who operates for Bradford, Mr. F. W. Kirchner, Germany, Mr. V. de Kyvere, France, and Mr. W. Wedener, Switzerland. Messrs. Kirchner, de Kyvere and Wedemeyer were accompanied by their wives. Mr. Kirchner referred to the stabilising effect on wool prices caused by the fibre substitute now used in manufacturing processes with wool. He said it was noticeable that when prices increased more fibrous content was woven into articles, but greater quantities of wool were used when the price level was more normal. It had been possible for Germany to buy 100.000 bales of wool from Australia in the past see*.son for about the same price as it cost to obtain 60,000 bales a year ago. REDUCED OTAGO CHEQUE Per Press Association. DUT’EDIN, April 5. The gross proceeds of the third Dunedin wool sale of the season were less than half of those realised for the corresponding sale last year, the decrease amounting to £398,814. Already previous sales had shown a decrease on the 1936-37 figures to the extent of £563,115, and with the drop associated with the third sale the total deficit for the present season is £961,929. The amount of wool sold, however, has been less than in the last season, the difference being 17.004 bales but allowing for the value of these at current rates, the huge deficit would be reduced by only 168.J00. When the season is wound up, Otago will not be far short of £1,000,000 below last year’s returns. At the final sale on April 12 it is expected that at least 20,000 bales will be offered. The prospects for this sale are quite good, and there should be no decrease in values.