PRICE OF WOOL

New Zealand Herald, Volume LXXIV, Issue 22671, 8 March 1937, Page 7

PRICE OF WOOL

TREND IN THE FUTURE TOPMAKERS' DIFFICULTIES DEMAND FOR LOWER GRADES [I'ROJI OUR OWN CORRESPONDENT] LONDON, Feb. 3 Developments in the raw material markets recently have set wool users wondering whether the top of the rise has been reached.

Since the upward movement started in October there has been an advance of 7}d in Merinos of 64's qualities; crossbred section sG's carded, have risen 8d; .50's carded Bid; and 40's prepared 71d. The advance in medium crossbrcds has been over 50 per cent. This represents a big advance for a period of about three mouths, and spinners and manufacturers have found it very difficult, if not impossible, to pass on the last stage of the rise. Problem of Supplies The chief problem that has arisen has been the provision of wool for the third quarter of the year. Is it safe to buy for that period at prices now ruling!' That is the difficult question importing topmakers have been called upon to answer. It would suit their book if an easier price level were now established, and consequently the ease in the finer wools lias beeu welcomed rather than otherwise. One week there was a puzzling situation because of the seesaw prices movement in the top market. One end went up as the other went down. Merinos were cheaper; fine crossbreds unchanged, while coarse sorts were dearer.

The extraordinary strength of crossbrcds rather modified the views of tlio.se who had been confidently predicting that the top of the rise had been reached. The process of one end going up while the other is coming down cannot go on for long, and it is thought that the exceptional position of medium aud low erossbreds will act. as a brake on any downward tendency that may develop in Merinos and fine erossbreds. United States Consumption One section sees no reason why Merinos should g(; higher, since Japan is baying in a more restrained fashion, and as contracts have been covered in most of the wool-using countries well up to the middle .of the year, there see ins to be justification for buyers forcing prices still higher. They appear to have more to gain by the opposite process. The chief anomaly at the moment is the position of the lower grades. World demand for military uniforms, bunting, carpets and upholstery, and especially the big consumption in the United States, has resulted in a quick clearance of the current ciip, and has swept away the surplus supplies in the hand* of the trade. There is little or no wool suitable for low prepared tops left to be offered in the Argentine, and the qualities selling best in New Zealand iire 4fi's and below. At the same time, the general view in the trade is that any rurther advance would carry values to danger point.

SALES IN LOKDON MARKET VERY STRONG LONDON, March 5 At the London wool sales to-day SBO2 bales were offered, including 2538 New Zealand, and 8152 Avere sold. A small supply of Australian Merinos sold well at full rates. A New Zealand greasy crossbred clip, "BH/J," realised 18d, top price, and l?id average. The Bank of New Zealand has received the following advice from its London office, dated February 5: —The market is very strong, with excellent general competition, including Russia. Prices are par to 5 per cent higher than the opening rates. Prices for New Zealand greasy wools "of good average condition are:—Merinos, super, 60-64 ? 5, 19Jd to 21d per lb.; ordinary, 16id to 17|d; inferior. 14d to 15d. Halfbreds, 56-58's, 18d to 20d; 56's, 17d to 18d; 50-56's, 16Jd to 17id. Crossbreds, 50's, 16d to 16Ad: 48-50's, 15Jd to 16d; 46-48's. 15(1 to lojd; 44-46's, lod to lo£d; 40-44's, 15d to laid; 36-40's, lod to 15jcl.