AUSTRALIAN WOOL.

New Zealand Herald, Volume LXVI, Issue 20303, 10 July 1929, Page 9

AUSTRALIAN WOOL.

REVIEW OF PAST SEASON.

IMPROVED PRICES AT CLOSE.

KEEN GERMAN COMPETITION.

Improved prices wero realised at tho closing wool Hides of tho Australian season last month, according to a prominent Australian buyer, Mr. Robert 13. McComas, and although the winter rains arc urgently needed in some districts, another good clip is expected next season. Mr. McComas, a representative of the Australian firm of Messrs. William Ilaughton and Company and a director of the Commonwealth Hank of Australia, arrived from Sydney hy the Ulimaroa yesterday to visit tho New Zealand branches of his firm.

"The improved prices at the closo of the season were particularly noticeablo iu the inferior qualities, which is regarded as a very encouraging sign," Mr. McComas said. ''The principal factor in realising t lu :se high prices was competition from German buyers. Thev bought very keenly and two of them headed the list, each buying visibly over 40()0 bales." Tho activity of Japanese buyers was not as marked as usual, and Mr. McComas attributed this fact to the decline of the yen owing to tho attempt to stabilise the Japanese currency on a gold basis. England, France, Belgium and Italy were operating only moderately, as they found the German competition too strong. Neither American nor Russian buyers were visible on tho market, although some of (he offerings would ordinarily have proved very acceptable to the Russian trade. Awaiting the Winter Rains.

"Tim pastoral position in Australia at present is very favourable," r. McCornas said, "However, over a wide area, prinei pally in llio lliverina districts, the winter rains have yet, to fall. Unless they como shortly the position for the coming spring and sunimer will not be hopeful. "Tho number of sheep in Australia, is about equal to the previous maximum, and even if there is an unfavourable season next year's production is not likely to be seriously affected. The absence of rain this winter would cause a shortage in the number of sheep, which would not effect the clip until tho following year." Statistics af supplies showed that holdings were normal. The Australian clip had been cleared as nearly as possible, stocks in brokers' stores being almost negligible*. The National Council of Brokers, in its forecast for the year, from July 1, anticipated a decreased production of about 100,000 bales, but private estimates, carefully compiled, provided for a production slightly in excess of last year's figures, which were approximately 2,750,000 bales, seen and unseen. Money Market Fairly Easy.

"The money market in tho Commonwealth is fairly easy at present," Mr. McComas continued. "Australian bank balances in London are relatively high, duo doubtless to the interest rate now offering. I believe that there is also a fair amount of Australian money in New York, where extreme rates are offered for short-term loans.

"However, there is still a fair amount of money in Australia, and the future is not so gloomy as some people make out. Thero has been very little borrowing of late, and commenelable efforts are being mado to improve tho balance of trade. We arc having our labour troubles, and one effect of them has been to stop, for the time at any rate, a tendency toward overbuilding. Money that otherwise would bo spent in building operations is circulated more freely." .Mr. McConias will remain in Auckland for a Jew days before departing for the South. His entire visit will of necessity be short.

CLEARANCE OF STOCKS

SMALL PERCENTAGE IN . STORE

An almost complete clearance of Australian wool stocks during the season ended .lune 30 is shown by statistics issued bv tho National Council of Woolselling Brokers, Melbourne, and received Tn Auckland by cablegram yesterday. These show that, during tho season 2,690,486 bales wcro received into store. Tho total sold amounted to 2,615,070 bales, and 31,114 bales were shipped unsold. The balance held in store amounted to only 44,302 bales, or about 1.63 of the total production.