DEMAND FOR WOOL

New Zealand Herald, Volume LXXIII, Issue 22399, 21 April 1936, Page 5

DEMAND FOR WOOL

STOCKS NOW VERY LOW HIGHER PRICES EXPECTED BRADFORD SPINNERS' POSITION (Received April 20. 8.25 p.m.) LONDON. April 20 The Financial Times says the world demand for wool is absorbing supplies so fast that stocks are the lowest since ]930. Australia, New Zealand, the United States, Argentina, South Africa and Uruguay all report increased inquiries and firmer prices. Ket'n bidding is expected at the London sales on May 5. held over from the March sales amounted to 18.137 bales, compared with 78,928 bales held over from March last year. Bradford spinners are holding off in the jiope that prices will decline, as they declare that yarn quotations can with difficulty be advanced in relation to the cost of wool. It is possible that, in order to attempt to maintain wholesale prices, staple fibre may be _ mixed with wool, but wool prices are more likely to rise than fall, the danger of higher prices leading to partial substitution being offset bv woollen goods being more fashionable than they have been-for many years. European politics are the chief threat to stability. Pressure of business at Bradford has somewhat abated, but the foreign demand is likely to maintain prices. There have been steady sales to Russia, which was unable to cover her requirements at the March series in London. WOOLLEN GOODS OUTPUT IX UNITED STATES The production of woollen goods by the tlnited States mills was larger in 1935 than at any time since 1923, and outstanding mill orders at December 31 were estimated to be about 45,000,000 yards. The National Association of Wool Manufacturers states that business in hand for the spring season was 30 per cent greater than a year before. That improvement, combined with the fact that the United States clip has shown appreciable reduction, has caused heavier importations of the sheep's staple to be made. Merino spinners' wools of medium quality and showing good length have benefited considerably this season by the stronger American demand for them. Large purchases have been made in Argentina and Uruguay, where crossbreds are secured. American conditions have been a considerable factor in this season's recovery in values throughout the world.