WOOL CHEQUES

New Zealand Herald, Volume LXXV, Issue 22954, 4 February 1938, Page 8

WOOL CHEQUES

, FIRST SIX SALES £1,745,388 REALISED TOTAL TO DECEMBER 31 SHARP REDUCTION SHOWN Wool has fallen from its place as the "golden fleece" of New Zealand, and growers are receiving much less for their clip this season. As a result of the decline in prices and in the quantity sold, the amount realised from the first six sales of the current season up to the end of last year Is over £1,500,000 less than was received from the corresponding auctions in 1936, and is also slightly less than the similar cheque in 1935. If the present, level of values is maintained for the remainder of the season, the present wool-selling period will close with a total return to the grower of only about £8,000,000* against £14,903,257 last season. In 1935-36 the clip realised £9,840,427.

Sales Compared Only six • sales out of a total of 27 for the entire season had been held to the end-of last year. A comparison of the bales sold, the realisations and the average price a bale for the period is as follows: — ' Bales Value Per Bale Sold £ £ 8 d J 033 .. 339,710 2,276,818 10 0 0 1934 .. 78,43*2 752,343 912 0 1935 .. 134,113 1,772,183 13 4 0 1936 .. 155,205 3,281,148 21 3 0 1937 .. 111,781 1,745,388 15 12 0 It will be seen that the quantity sold is the smallest for some time, with the exception of the sharp drop in 1934. Lack of competition from overseas, particularly Japan and America, is largely responsible, while the unwillingness of growers to meet the market at the earlier sales resulted in numerous passings. A reasurring point, however, is that the average price is still comparatively high and easily exceeds that in 1935. As growers are now reconciled to the fact that prices have settled at a lower level, clearances are likely to be larger as the season progresses. Position in Australia A similar position has arisen in Australia where the cheque also is lower than last season. Sales and realisations in Australia for the six months, JulyDecember, compare as follows: — Bales Value Per Bale Sold £ £ s d 1933 1,500,095 28,574,603 18 18 0 1934 1,255,582 15,795,333 12 9 0 1035 1,473,091 25,127.110 17 0 0 1930 1,425,701 27,521,848 19 5 0 1937 1,196,858 21,028,122 1 7 7 0 The Australian clip this season has been estimated to yield about £55,000,000. If about £63,000,000 is realised for both Australia and New Zealand, the return will show a sharp reduction from the record total of about £80,000,000 last season.