WOOL PRICES HOLDING

New Zealand Herald, Volume LXIX, Issue 21277, 2 September 1932, Page 11

WOOL PRICES HOLDING

HARDENING TENDENCY

COMPETITION AT SYDNEY i KEEN AND GENERAL By Telegraph—Press As*acintiovi—Copyright (Received September 1. 8.3.» p.m.) SYDNEY, Sept. 1 At the Sydney wool snies fo-day, urirlor very keen general competition, the hardening tendency noticeable since the opening was maintained. All descriptions of wool sold at the best rates of the week. Greasy Merino realised up to 16d. The offerings totalled 9458 bales and 8885 bales were sold. Also, 5534 bales were disposed of privately. "This appears to indicate definitely that the bottom of the depression has been reached, and it is certainly the fulfilment of the earlier prophecy that the sales would open to spirited competition with increased values," was the comment of Mr. W. 11. Nicholson, secretary of the Canterbury Sheepownors' Union, when the cable message published in the Herald on Tuesday, announcing strong general competition and a rise in prices at the opening of the wool sales in Sydney, was referred to him. *'Jt must bo appreciated, however, that with tho average price for wool in New Zealand last season at s|d a pound, even a 20 per cent increase in values is not a very material help. Yet it is some very concrete evidence in this case that tho worst of the depression has been experienced and that recovery is indicated.

"To be of material benefit., wool must, rise to at least 13d a pound in New Zealand. In Canterbury last season the average price a. pound was !i little below 7d, while the average price for the whole of New Zealand, with slipes and scoured wool included, was about 6d. For greasy wool alone the average was 5.2 d. "The 14d wool in- Australia would be tops of a quality not produced ii) the Dominion. The average price for Australia's greasy wool clip last season was BJd a pound. However, this news will bo a source of great pleasure and comfort to eheepowners throughout New Zealand, although its value at the moment is almost solely that of a valuable indication of the correctness of the hopeful view regarding the future of the industry. It is more than welcome at present with fat lamb on the London market from New Zealand selling at below 5d a pound, which is equivalent to below 3d a pound in New Zealand.

"The improvement in the Continental demand I attribute to the benefits of currency adjustments. The easing off in money, and its cheapening in Continental countries, is a great contributing factor, and I hope that we in our turn may have help from that direction."