WOOL PROSPECTS

Nelson Evening Mail, Volume LXIV, 19 February 1931, Page 3

WOOL PROSPECTS

REASSURING FEATURES

Discussing the tone of the wool sales, which were resumed in Melbourne last week, the “Melbourne Ago” says that in view of the improvement in other centres, particularly Sydney, where a rise in value of from to 10 per cent, had been reported, much interest attached to the proceedings. From the outset it was apparent that the improvement quoted was to be fully maintained and indeed, careful review of catalogues after the sale disclosed in many cases a further hardening tendency. In one catalogue, at least, the all-round advance, as compared wilh the earlier sale in January, registered a generally higher average of Id per lb, with but little alteration in the standard of wools submitted.

A satisfactory feature was tho wider range of competition, (ho Continent and more particularly tlie French section, giving much increased support to skirtings of all sorts, which last month had been comparatively neglected, the improvement being iullv reflected in this pnrliiular grade, and at times carried a point further. Japanese competition was also in evidence, wilh Bradford and America both buying and catalogues were practically cleared under the hammer.

Results oT the close of London sales last week indicated that opening rates were evidently false; as a matter of fact, for the first three or four days the market must have been practically demoralised. Private cable messages advise advances of up to 2Ad per lb above prices bid for similar wools in the first few days. The quantity carried forward, 90,000 bales, is considerably greater than at the corresponding period of last year, but need not be regarded as likely to prove a handicap. Reports from Bradford are of a more healthy nature, business moving rather more freely. The same condition applies to the Continent. The general feeling throughout all sections of the trade is that prices have reached a level on which business can be done, and if the purchasing power of the world can be strengthened to any extent, wool should be one of the first commodities to feel the benefit.