PAST WOOL SEASON

New Zealand Herald, Volume LXXIII, Issue 22392, 13 April 1936, Page 5

PAST WOOL SEASON

VERY STABLE MARKET CHEQUE ABOUT £9,500,000 LARGE CLEARANCE MADE Almost unprecedented stability and a very substantial clearance of one of the heaviest offerings for many years, were tho main features of the Dominion ]935-36 wool season, which concluded at Napier on Thursday. The previous season, following one in which there had been a refreshing recovery from four years of prices far below the cost of production, had been responsible for huge stocks of unsold wool which created a pronounced market problem in the first series of saies. The obvious widespread demand which was manifest from the outset, therefore, proved highly encouraging. Abovo all. a decline that might have been expected later did not materialise and tho tone continued strong until tho end. Prior to the opening of tho season there had been several indications of a healthier demand. Some recovery was noticeable toward the end ■of the previous season, and tho policy of caution on the part of wool users showed signs of vanishing. By July the general world outlook had improved decidedly, and the promise of better wool prices given at the winter oddment sales in tho Dominion wer*» confirmed at tho London sales. Low stocks in the manufacturing centres obviously needed replacements and the New Zealand selling season opened on an optimistic note that has been rare in recent years.

Much Old Wool At the commencement of the first series of sales it was estimated that the total carryover from the previous season was approximately 164,400 bales, each centre having almost enough for one sale without any new season's clip. Had shearing conditions in a number of parts of the country created an unusual situation and buyers were being offered a large proportion of old wools. This had the effect of placing much of the fresh clip into the second or even the third sales, and the broad range of wool at each fixture made for widespread competition. Generally, the previous season's wool carried well and the new offerings ' were of a standard well up to that characteristic of the Dominion's best, although owing to the general lateness of the season, lambs' wools were inclined to be more seedy than usual.

Take,n as a whole, the price movements through the season were only slight and often reflected the condition of the wools offered. Generally, coarser wools and crutchings met with a very strong demand, while finer sorts dicl not appreciate to the same extent. Taking the Auckland opening sale as a standard, there was a tendency to a slight easing for coarser wools at the subsequent first series fixtures, presumably the effect of the weakening of the London market and a restriction of Bradford buying limits. Fine wools remained firm at the southern centres.

Crossbreds Improve Later thcro was a distinct recovery in values for crossbred wools and during February each centre reported an allround advance on prices at their earlier fixtures, the fact that old wools had been cleared undoubtedly being a contributing factor. Throughout growers showed an encouraging willingness, to meet the market. The final sales were all marked by abnormally large catalogues and an additional fixture had to be arranged at Napier to enable a clearance to be effected. In spite of the heavy supplies and the fact that a number of buyers had filled their orders, values remained very firm, although there was a slightly easing tendency after the third Auckland fixture. A pronounced feature of the earlier sales was the strength of the Continental buying and the comparatively subdued Bradford interest, although the latter buyers were taking a> good weight of wool and providing healthy competition. Later, when it was obvious that the Continent had abnormally large orders to fill, Bradford was forced to coinc into the market and for the second half of the season operated heavily, especially for the medium and coarse crossbred wools. 1' ranee and Japan, as usual, were strong competitors for the'finer sorts and for betterclass oddments, but there was an unusual demand on their part for rougher wools, a tendency which, on the part of Japan, at any rate, is expected to increase in the future. Buying By America 'German buying, while obscure at many of the sales, showed an increase on the previous season, while Belgian buying was again erratic. One particularly interesting feature was the operations of America, especially on those lines suitable for carpet making, which are admitted into the United States duty-free. There was also a fair weight of wool taken for Canadian firms. As usual, local mills were strongly in the market for suitable lines, and at some of the Southern sales their buyers took the bulk of the finer wools. Clearances throughout the season remained at a high level, usually wp*' exceeding $0 per cent, with a good disposal immediately after the auction. At some sales there were somewhat substantial passings in the earlier catalogues, but this was rectified later. Although final figures are not yet available, it is probable that when all business is completed the clearance for the whole Dominion will work out atj, fully 95 per cent. Total Cheques Compared

The following table shows the number of bales, offered and sold in the Dominion during the past five seasons, together with the total realisation, the figures for 1935-36 being approximate: — Bales Bales Value offered sold £ 1931-32 . . 575,088 408,256 3,522,735 1932-33 . . 033,998 503,505 4,239,720 1933-31 . . 670,550 033,553 10,241,041 1931-35 .. 511,491 * 401.305 4,357,470 1935-36 •• 737.300 702.500 9.500.000 Allowing for wool offered more than onco it is highly probable that less wool vemains unsold in the Dominion this year than was accumulated in one centre prior to the opening of the season. An estimate of 30.000 bales compares with 164,411 bales last year, 49,926 bales in 1934, 160,863 in 1933, and 246,337 bales in 1932. It will thus bo seen that the past season has created a, carry-over position that will be extremely welcome to the trade in general.