NORTHERN ADVOCATE DAILY Registered for transmission through the post as a newspaper. THURSDAY, JULY 9, 1925. THE WOOL MARKET

Northern Advocate, 9 July 1925, Page 4

NORTHERN ADVOCATE DAILY Registered for transmission through the post as a newspaper. THURSDAY, JULY 9, 1925. THE WOOL MARKET

Brief though it is, the news of the opening of the London wool sale is very Satisfactory, for we are told that the market is firm and prices show an increase up to 5 per cent. Up till quite recently very pessimistic views were held concerning the prospects of the market, and even the most optimistic scarcely ventured to say more than that the July sale would show whether the price of wool had touched bottom. The general opinion seems to have been that prices would drop, but within the past week it was suggested that the drop would not be so pronounced as was formerly expected. The cabled review of British trade conditions on Monday gave it as the opinion of the "Yorkshire Post," a journal that is in close touch with the market, that the July sale would provide a testing point and perhaps establish a basis for the resumption of business on normal lines. It was stated that Continental buyers were prepared to purchase wool if the price suited them, and that'there was a possibility of some demand from the United States. But it was clear that the financial position in Europe would be a factor in the market. Belgium, France and Italy are affected by serious financial restrictions, so that wool buvers from those countries cannot be expected to opwate freely, As ! it is known that stocks of raw material are very low in America there is ground for the suggestion that American buyers will be active, .though Bradford apparently'inust be the mainstay of the market. The May in London opened under very depressing conditions, prices declining 20 per cent, and all grades of crossbred wool being fully (id per lb. lower than at the March sale. The result was'that withdrawals were heavy, and this caused some appreciation in prices, erossbreds recovering to the extent of about_ 2d per lb. before the sale closed. During the eight weeks since the May sale vendors and buyers have had time to consider the position, and the fact that the new sale has opened to a firmer market indicates that the fears _which were expressed have been dissipated. It is to be hoped that the small increase in prices already reported will set the standard for the sale, and that ' sellers will'be encouraged to face the 1 market. A steady sale at the present I time would go far to restore confidence j and give tone to the wool market.