THE WOOL POSITION

New Zealand Herald, Volume LXXV, Issue 22950, 31 January 1938, Page 7

THE WOOL POSITION

STIMULUS REQUIRED COMPETITION FROM COTTON ACTIVITY OF GERMANY The opinion that the wool market needs the stimulus of more sustained Japanese buying and an increase in the American demand Js expressed by Winchconibc, Carson, Limited, woolbrokers, Sydney. It is regrettable that Japan did not operate with more freedom at the opening Sydney sales oi the half-year, says the survey, as a firm market would have been reassuring for consumers of wool, tops and yarn. Wool has receded in value since December, but cottQn has improved slightly, being quoted at 4.97 din English currency. The price <>f the latter, however, is still low, compared with its top point of nearly 8d last March, and while it remains on that basis the cheapness of cotton must make it a more than usual competitor with the sheep's staple as a textile raw material. The world's cotton crop is expected to be greater than its normal consumptive capacity, but its low cost will probably result in a larger use ol it and the reduced returns for growers this year will tend to curtail the quantity sown. The development, however, is not an immediate prospect. _

Germany has shown good activity this season, and has also been a large buyer in South Afri a. Stocks of wool in Germany reached a very low point. Imports of the sheep's staple have been curtailed considerably ol late years. The quantity of imported wool returned during the first nine months of 1037 was only 201,000.0001b. The total for the similar period of 1935 was 287.000,0001b.. higher by .'lO per cent. Substitute fibres have been produced in larger quantities, and more extended use has been made of recovered rags, but gradually the need for wool has boon depleting the supplies available. Stocks of tops reached an ex : tremely low level, and replenishment ot wool holdings has evidently become essential for the conduct of the mill industry. German exports of fabrics increased (luring 1937, the quantity of woollen fabrics exported froni January to September, showing an increase of 22 per cent on the figures a year beA great proportion of the wool grown in Germany is short, with a length of only four and a—half to se\ cu and a-half months' growth. It is produced on sheep bred chiefly for mutton production. The Government is now offering a premium of 30 per cent on fixed prices for wool of nine months growth and over in ail effort to encourage stockowncrs to produce wool. LONDON SALES SOME RELUCTANCE SHOWN LONDON, Jan. 2S At the London wool sales 7570 bales J were ottered, including 6(30 from New Zealand, and 6790 were sold. There was a fair selection, chiefly of Merinos, and a fair demand. Current rates generally were maintained. Prices included: New Zealand scoured half bred crutehings, marked "Mairuna, ' lid to 133 d. i , , , . The sales have tended to slacken and ' there are a number of withdrawals. I It is noted that Home and Continental 1 buyers are becoming reluctant to meet sellers' limits.