WOOL PRICES UP

New Zealand Herald, Volume LXXIII, Issue 22512, 1 September 1936, Page 12

WOOL PRICES UP

SYDNEY SALES OPEN /, . , WIDESPREAD INTEREST GERMANY A MAIN BUYER JAPAN DOES NOT OPERATE (Roceived August 31, 0.25 p.m.) SYDNEY, August 31 The opening sales of the 1936-37 wool selling season in Sydney were attended to-day by a record number of buyers. Japaneso buyers were present, but did not operate. The catalogues embraced a typical selection of the new season's clip, chiefly from- western and north-western districts and tho ltiverina. Tho western wools wero well grown and more robust than last year, whereas the north-west-ern wools generally reflected tho drought conditions. They wore somewhat thinly grown and lacking in length. Tho liiverina wools were finer but hardly as well grown. ' Interest in the sales was exceptionally .widespread. Compared with the closing rates of last .season in June the best descriptions/ were 5 to 7J per cent higher and average to faulty descriptions 7i to 10 per cent higher. By comparison with last year's opening sales best descriptions were from par to 5 per cent higher, average sorts were at par, and inferior sorts were 5 per cent lower. Competition came mainly from Yorkshire arid Germany. Greasy Merino fleece sold to 10J d for 10 bales from Moree. French, Belgian and Swiss buyers also operated at the wool sales to-day. If tho excellent prices recorded continue, it> is expected that the Commonwealth's wooi cheque will be enhanced by £2,000,000.

The opening of the Australian season is always an important event in the trool trade, but this year its significance is raised owing to the trade dispute botween the Commonwealth and Japan, its second largest customer. Japanese buyers withdrew from the Australian market/toward the end of .last season and evidently they are still holding a "watching brief." The bright opening of the sales and the rise in prices will give renewed confidence -to growers. It is clear that the wool position has not deteriorated during the off-season. The widespread interest shown is evidence that wool manufacturers are greatly in need of the raw material for replenishing stocks, ■which are low in most centres. As anticipated, Bradford was the mainstay of the market, but the most encouraging feature is the revival in German buying. This support, coming from a country which is endeavouring to force the use of wool substitutes, may be 4, significant. It was announced recently \ that German credits in Australia for \ buying wool were larger this 6eason Ithan for some years. '%■ Yorkshire and the Continent probably would be in the irtarket for all well-grown lines of wool, but the faulty sorts may have suffered through lack of Japanese competition. Probably the real test of the demand will shown when buyers have satisfied immediate needs arising from the shortage o£> supplies in the past three months. It is hoped that by that time Japan will again be operating. Sales in Australia will now continue fairly regularly. The next series of London sales will open on September 15, to be followed by a further "series opening on November 17. The 1936-37 season in New Zealand will open afc Auckland on November 28.