THE WOOL MARKET

New Zealand Herald, Volume LXXI, Issue 21910, 20 September 1934, Page 10

THE WOOL MARKET

With the opening of the London wool sales New Zealand sheep farmers are brought closer to the probabilities of their own market than was possible with only Australian fine wool prices to guide them. Values at the first Sydney sales were from 20 to 25 per cent lower than at this time last year, but tfiey have continued firm at this level. The first Melbourne sale is described disheartening, but only on account of the drop from the opening rates of last year. Prices were on a par with those of Sydney. The London comparison is with the price levels of July, the decline in Merino being from 10 to 15 per cent and in crossbred 5 to 10 per cent. The fact that in the classes of crossbred mainly produced in New Zealand the fall was only 5 per cent is a cheering circumstance, particularly because it is unexpected and a reversal of the general tendencies for some years past. At this stage it would be unwise to draw over-confident inferences, especially in a season when the experts are hesitant to read the future, but the New Zealand growers may at least indulge the hope that the gap between the values for fine and coarser fibre is beginning to close. There probably is something in the contention that the phenomenal rise in prices last season proved to be too great for the spinners and millmen, and that this year may fix levels that are more dependable. It is to be noted that notwithstanding the drop in the prices for Merino in Australia they are still 40 per cent higher than those which ruled at the bottom of the depression in June, 1932. That fact alone gives cause for thankfulness. One of the difficulties of gauging the market at the moment is due to the restricted buying of Germany, France, Belgium and Italy. Germany was absent from the London sale though active in Sydney, while Italy has purchased little wool in Australia, evidently as a reprisal for Australia's rejection of some of her merchandise. Yet no manufacturing country can do without wool, the statistical position of which is sound, world production being estimated at 800,000 bales less than was the case a few years ago. In regard to what is evidently an improving demand for crossbred, there is an interesting suggestion from Bradford that moro of the wool of this type is likely to be used for clothing materials, particularly in Germany. "Fine and even medium crossbred wool is by no means unsuitable for the manufacture of clothing," says a Bradford writer.