WOOL PRICE LEVELS

New Zealand Herald, Volume LXXIV, Issue 22845, 28 September 1937, Page 5

WOOL PRICE LEVELS

FUTURE . MOVEMENTS NO REASON FOR DECLINE SOUND BASIC POSITION No reason why the new season's wool clip should not find users on price levels as good as those which ruled during the past two years is seen by Winchcombe, Carson, Limited, woolbrokers, Sydney, in its latest review. The need for wool at the mills owing to the absence of stocks is emphasised. The wool market shows indications of stability, continues the review. The basic selling strength of the raw material has asserted its influence and prevented any marked downward variation in rates, in spite of the absence of Japanese competition. That circumstance is not surprising, considering that the manufacturing industry in most countries has never been closer to the wool on the sheep's back for its supplies than at present. A continuance of that position is desirable from growers' standpoint and healthy trading circumstances for goods are a prime essential for its maintenance. With employment more plentiful, turnover in mill products has every prospect of being satisfactory, provided international troubles do not disturb confidence in markets generally, and tops, yarns, and textiles can be produced at prices at which the public will readily purchase. There are more or less'~mental factors in the position, which should not be overlooked if an inclination develops expecting a marked upward movement in prices for the sheep s staple. At this time last year the first flush of the probable effects of rearmament expenditure was in traders' minds. Larger business turnover was anticipated, particularly in Great Britain,' owing to the approaching Coronation festivities, j The Lnited States was experiencing the commercial enthusiasm arising in the change from depression business experiences to better times.

The huniau factors quoted are not as influential to-day as they were 12 months ago. The question which has chieflv occupied traders' minds is whether prices for all products would be maintained or recede. That outlook may change, but its presence is certainly a check on any decided rush on the part of merchants or retailers to stock up their establishments with goods as they did last year, when higher prices were anticipated.

OFFERINGS IN SYDNEY MARKET VERY FIRM JAPANESE COMPETING (Received September 27, 9.45 p.m.) SYDNEY. Sept. 27 At the Sydney wool sales to-day 11,145 bales * were offered and 9541 were sold. Also 2690 bales were sold privately. The market was very firm at the closing levels of last week with good, ! general competition, including Japan- | ese. Greasy Merino sold to 2l*d. The average price of the wool sold in Sydney last week was £lB 0s 9d a bale j andjli.ld a lb.