SOUND WOOL POSITION

New Zealand Herald, Volume LXXIV, Issue 22724, 10 May 1937, Page 8

SOUND WOOL POSITION

While most other commodities and securities 'suffered sharp reverses in the recent readjustment of values in London markets, 'wool has held its ground at the higher levels reached after a comparatively long period of steady appreciation. Nothing could better advertise the sound position in which wool at present stands. Some of the contributing factors are discussed this morning in a message from London, where the latest series of sales has ridden out safely "the cyclonic storms disturbing other commodities." The fact is that all manufacturing countries want wool for immediate consumption, there is no accumulation of stocks, and no possibility of a sudden increase in production, a market risk that must be taken into account with certain other commodities. The statistical outlook foi ; crossbreds, the Dominion's main interest, is particularly good. In a sense, of course, New Zealand growers will be spectators at the world wool markets for the next six months, but not passive nor disinterested spectators. Their wool cheque of £15,000,000, the largest for a decade, has already been pocketed, but they are carrying as numerous flocks as have ever been depastured in New Zealand. While world wool production has declined slightly in each of the last four years, the New Zealand clip has been increasing, there being 2,400,000 more sheep to shear last season than in 1933. The livestock returns, when they become available, should show further gains. Hence the continued keen demand for wool at high levels, and its swift metamorphosis into woollens can be regarded with the liveliest satisfaction as the best augury for the future, one that good authorities encourage growers to accept with confidence.