AUSTRALIAN WOOL

New Zealand Herald, Volume LXXII, Issue 22210, 10 September 1935, Page 5

AUSTRALIAN WOOL

SHORT CLIP ANTICIPATED LOWEST FOR FIVE YEARS PROSPECTS FOR CROSSBREDS The Australian wool clip for the current season is estimated to total 2,930,000 b:\lcs, of which 2,665,000 bales will be offered in Australia, states the latest review issued by Winchcombe, Carson and Company, Limited, Sydney. Even that figure may not bo reached as the wool shorn to date indicates that the sheep over a large area of New South Wales are cutting an unusually light fleece. The total for the clip is the smallest recorded for fivo years, and is 276,610 bales below the peak level of 3,206,610 bales of 193233. It is a coincidence that a simultaneous reduction in the quantity of wool produced should have occurred in tho two countries chiefly "responsible for the world's merino sij|?plies, Australia and South Africa. The quantity grown in the latter quarter has decreased about 300,000 bales, making a reduction of 576,000 bales since 1932-33, in supplies, from the two countries. Some changes in the class of fabric produced, however, will probably bo seen as a result of the higher cost of merinos compared with recent years. Crossbreds of medium quality will probably be used more extensively in order to keep prices for goods within specified limits. Quotations for 50's medium crossbred tops have advanced only 15 per cent during the past five months, while merinos have risen 30 per cent over the same period. A disparity of that degree is not likely to exist indefinitely. A swing to the use of crossbreds should improve prices for them. An increase in American buying of super merino wools looks to bo a possibility of this Australian season. Consumption of wool in the United Stateu has expanded considerably since January. It is estimated that during tho first five months of this, year the quantity used in the mills was 100,000,0001b. more than for the similar period of 1934. That development has resulted in a substantial decrease in the stocks of tho staple held, and at the end of June they were about 20 per cent lower than a year before. Production of wool in the United States in 1934 was about 80,000 bales less than the top point four years before, and is expected to display a further decrease this year.

SALES IN SYDNEY VERY KEEN COMPETITION MARKET REMAINS FIRM (Received September 9. 8.45 p.m.) ~~ SYDNEY, Sept.:;, 9 At the Sydney wool sales to-day 14,223 bales were offered and 12,469 were sold. Also 2192 bales were sold privately. There was very keen competition from the Japanese section with good support from Australian mills and Yorkshire and n limited demand from the Continent. The market showed no change from last week for all descriptions other than faulty pieces, which met with irregular demand. Greasy Merino sold to 213 d. The average price of the wool sold in Sydney last week was £l6 18s Id a bale, or 12.9 d a lb.

AN INCREASING DEMAND AUSTRALIAN FINANCE POLICY Speaking at the annual meeting in Adelaide of Elder, Smith and Company, Limited, Mr. T. E. Barr Smith, chairman of directors, said the rapid consumption of the last Australian wool clip indicated an increasing demand for wool. Mr. Smith said it was a matter for grave concern that Australian Governments were continually adding to the national dpbt, so that sayings in interest arising from conversions at lower rates were being wiped out by the additional interest on new loans.

DOMINION PRODUCTION ESTIMATE FOR PAST SEASON An estimate of wool production in the Dominion last season has been made by the Government Statistician, based on exports and local consumption and the variation of stocks. The estimated production was 275,900,0001b., compared with 300,500,0001b. in 1933-34 and 288,400,0001b in 1932-33. Production was the lowest since 1930-31.