WOOL TRADE OUTLOOK

New Zealand Herald, Volume LXVII, Issue 20597, 23 June 1930, Page 5

WOOL TRADE OUTLOOK

BROKERS' HOPEFUL VIEW* appreciation ln values. ABSORPTION OF OLD STOCKS. An optimistic review of fee world's wool markets was issued by E. Dawson, Sons, and Company, Limited, the wellknown wool brokers, on May 13. It was stated: — " The hardening tendency thau nas become mora pronounced daring •. weeks, culminating in a fall 10 per advance in the overseas- markets above the opening level of 31a?ch, is viewed with a feeling of distrrstFiy the majority of the trade in Yorkshire. This is not surprising and is naturally due to the crclongaticn of a dispute which n paraiyising half the industry, and seriously disturbing the business of these who are able to partially operate machinery. It has unfortunately happened pst when demand showed signs of improvement and is as disastrous as a keen frost in -June. It threatens to destroy the bright chances of the new season s trade and to cause sericus loss 01 export business. "Fortunately, the appreciation of values in raw material has obtained, despite Yorkshire's reserve, by a k-'-en continental and Japanese demand. The operations on behalf of France and Germany apnea? to bo due f o the normal reaction, from the policy of reducing stocks which has been effectively carried out during the first quarter of the year. There has been a steady absorption of old stocks and also of new arrivals at the Continental centres since January. " Moreover there are brcacer factor# that are having their influence on market. In effect, the majority cf raw materials have taken such severe falls as to place them below their economic *alue. Thus, it is necessary to realise that commodity prices are low and, at- the same time, money rates are cheap; and with these two facts running parallel there is a strong incentive toward increased demand and to the raising of the general level of prices. Within this general principle, and allowing for minor fluctuation, the curve of price level should generally show a distinct upward tendency. " Apart from this, the industry appears to have arrived at a positioa where legitimate requirements have to be filled. Reports from practically all centra indicate abnormally low stocks cf zsanafactured goods. Ifc is equally true thai owing to persistent decline in values, consumers of raw material have also arrived at a point where their stcKika are at a rmTnTmrm leveL There has been ® steady absorption of new arrivals, aspeciafly in Merino sorts, during the past few months. " The visible supplies cf wools are rapidly becoming less formidable to the trade. Scath Africa is practically cleared. In South ArriPwVa. heavy shipments have been made daring the pass month. Tha figures from Australia indicate that about 500.000 bales remain on hand, which will probably be cleared by July. " The offerings are no longer being neglected, but are now finding interested and keen buyers and good clearances are being effected at the advanced leveL These facts have produced a feeling cf confidence which had previously teen lacking and there is much to establish it even more strongly. Supplies are safe and plentiful, hat not too heavy, and if the Yorkshire dispute coold be promptly ended, the outlook might justifiably be intar» „ preted as being not enly hopeful. buS £ brighter than for some time past.'* . FROZEN MEAT MARKET. •. DULL LONDON CONDITIONS. The Bank of New Zealand has received the following advice from its London office as at the close of business last week:—Frozen meat: The market for wethers is very quiet, and there is only a poor demand. For ewes, weaker values are ruling owing to lack of demand. For lambs, there' is a moderate demand, prices being a shade lower. Tha beef market is dull. Quotations: Wethers, light, 4 5-Sd to 6£d per lb; heavy, 4jd to 4£d; ewes, 2|d to 3 5A3 j lambs, twos, Bfd to Sj-d; eights. 8 5-&1 ; to 8 5-Sd; fours, Sd to r seconds. 3d Sid; ox hinds, 4jd to sd: fores, 3d to 3|d; cow hinds, 4d to 4jd; fores, 2sd to 3d.