OUTLOOK FOR WOOL

New Zealand Herald, Volume LXXIV, Issue 22724, 10 May 1937, Page 5

OUTLOOK FOR WOOL

OPTIMISM m LONDON

MARKET REMAINS SOUND POSITION UNDER. REVIEW (Received May 0, 5.5 p.m.) LONDON, May 8 After a violent readjustment the outlook for commodities is again healthy. - Outstandingly strong among commodities is wool, especially medium and low crossbreds, the unsold stocks of which are the lowest ever known. It would not be surprising if it were difficult to obtain all the wool required before the arrival of the new clips. The Coronation has helped the consumption of wool, a considerable amount having been used in the production of flags, bunting and uniforms. Dealers, however, are not encouraging and talk of famine prices. It is pointed out that the full extent of the rise lias not been passed on to the consumers and if this -is attempted it may materially affect consumption. Manufacturers, however, are beginning to be, faced with difficulty. Formerly stocks bought lower down enabled them to average prices and give tho consumer the benefit, but as stocks are depleted- this is becoming impossible. It is not sufficiently realised, for instance, that the lower quality Argentine wools, which could be purchased at 5d in 1934, now cost 22r1. The position is that the price of the raw material is well ahead of anything yet established in the price of finished goods. "Wool remains sound and impervious to the cyclonic storms which disturbed other commodities,'" H. Dawson, Sons and Company, Limited, commenting on the London sales. "The moderation of the recent advance has been its salvation. United Kingdom stocks have been reduced to less than normal - proportions, but buyers are cautious. There is every evidence that wool will continue, to enjoy prosperity." SALES IN DOMINION GOOD CLEARANCES MADE Sales of wool in the Dominion for 10 months of the current season show a decrease, according to figures Compiled by Dalgety and Company, Limited. Dominion offerings comprised 686,150 bales, of which 681.248 were sold, while the corresponding figures for last season were 784,585 and 752,254. During April 82.217 bales were offered and 82.000 sold. Exports of wool during April totalled 123,160 bales, of which 4887 were shipped from Auckland and Opua. For the 10 months' period 716,141 bales were exported, against 821.583 in the previ-* ous season, the Auckland and Opua figures being bales and 95,978 bales, respectively.