THE WOOL SEASON

New Zealand Herald, Volume LXXIII, Issue 22470, 14 July 1936, Page 5

THE WOOL SEASON

QUIET PERIOD ENTERED FEW SALES BEING HELD THE JAPANESE SITUATION The wool trade is now entering on a quiet period. The July series of sales is in progress in London, but, when the sales conclude, there will be a break for two months. In the producing centres operations have closed-for the season. No further auctions will be held in Australia until the new season's sales open in Sydney on August 31. The New Zealand soiling season will begin about; throo months later. At this stage it is almost impossible to forecast the trend of wool Rallies. Australia and Japan are still at a difference on trade matters, and Japan has suspended wool buying in the Commonwealth. Representatives of the trade in Australia are hopeful that the dispute will soon be settled, as the absence of Japanese orders has resulted in a lower basis of values being reached. Although Japan needs wool and may replace purchases in Australia with trade in other markets, including New Zealand, it is evident that a diversion of buying orders may seriously affect Australia's trade. Discussing trade in Great Britain, the Sydney Morning Herald states that Britain's oversea trade in textiles has displayed a good recovery since the depression years. That development, combined with a marked reduction in imports of fabrics and expanded internal trade, has provided much increased turnover for the mills. The imports of fabrics from January to April were oidy 1,452.000 square yards. Three years before they were 2,899,000 square yards for the period quoted. English imports from Italy ceased, but German textiles have to a great extent taken their place, the total from that country for the four months being 556,00Q square yards, an increase of 308,000 square yards on the 1935 quantity. The quantity of imported 'wool retairted in Great Britain from January to April was 18,978,0001b. greater than in 1935. That increase was largely due to the more rapid sales made in Australia, South Africa, South America and New Zealand. A long off-season period this ! year will considerably alter the import I position.

AUSTRALIAN DAIRYING VAST POTENTIALITIES $ FEDERAL SUPERVISOR'S VIEW [KROAt OUB OWN CORRESPONDENT] ; SYDNEY, July 9 The vast potentialities of the Australian dairying industry were referred to by the Federal Supervisor of Dairy Exports, Mr. F. Wigan, during a review of the last butter export season, presented to the annual conference of the Dairy Factory Managers and Secretaries' Association. He said the capacity of the industry to expand was enormous, and it would be difficult to predict to what extent it would develop. " After considering all phases of our export butter," Mr. Wigan declared, "I feel justified in saying that the dairy industry in Australia has never 1 been in such a good position as it is to-day. Production has increased to an extent far exceeding the most optimistic calculations during the last six years, and our percentage of choicest butter is greater than it has been for four years. But, best of all, through the application of a sound grading standard and its excellent keeping quality, our ' Kangaroo ' butter has established itself so well in the confidence of the buyers in Great Britain, as being of a definite and reliable quality, that it practically all sold on the Australian gradings without inspection, and nas for the last two years. been bringing within Is per cwt. of New Zealand finest butter, and for several months recently the same price as New Zealand butter. "This is a great advancement com-" pared with only a few years ago, when our butter in London was considered irregular and unreliable in quality, and prices averaged 5s per cwt. below New Zealand finest butter. At that time much of our butter was inspected, and even sampled, before buyers would make a final purchase." Mr. Wigan said that the importance of the butter industry vras revealed in the 'export figures. This season, that was from July 1, 1935, to June 30, 1936, the quantity of butter examined for export amounted to more than 4,000.000 boxes, with a value of £8.000.000 in English money, or £10,000,000 in Australian currency, lhat, however, was a decrease of more than £2,000,000, compared with last season's export. , In reply to a question bv a delegate tor the reason of the smail differences m price of various grades of butter in London, .Air. Wigan said that at times there was a shortage of second-grade butters, and certain people must have it, especially for blending. He askfed one blender why he would not buv first-grade butter for the purpose when the price was so close. "That is no good to me. ' the blender replied. " If 1 start putting in first grade they will always want it."