WOOL TRADE FACTORS

New Zealand Herald, Volume LXXV, Issue 22964, 16 February 1938, Page 9

WOOL TRADE FACTORS

! DEMAND DISTRIBUTION WIDER INQUIRY DEVELOPS REFLECTION IN VALUES The advantage of a more widely distributeel. demand has been evident at recent wool sales, states Winchcombe, Carson, Limited, Australian woolbrokers, in the firm's latest survey of the wool market. For some weeks Australian markets were practically dependent on Yorkshire and Continental inquiry similar to that experienced .up tc» 1913-14, when the Commonwealth was growing .about 30 per cent less wool than is now produced. With the resumption of Japanese buying in larger volume an upward trend in prices developed. Considering the intermittent nature of Japanese purchasing and the almost total absence of American operations, the sales made and the average value ot 13.77 d per lb. secured for the wool sold to l January 31, are a tribute to the continued favour in which wool is held for use in textiles provided its price enables it to compete with other fibres.

Yorkshire has been a more eager purchaser of late, particularly for deeply grown, medium fine spinners' fleece. For some time England's exports of worsted tissues were expanding, depleting the stocks of spinning wools held. In the United Kingdom spring business signs of revival have been seen in the demand for worsteds for women's ■fabrics. English millmen have bdught fairly extensively this season in spit© of the fact that their demand has not been as well sustained as a year ago. Purchases would certainly have been larger, but merchants and retailers have been buying goods only in hand-to-mouth quantities pending more confident feelings regarding international trading conditions.

Italy for a considerable period was purchasing wool with much freedom. Her exports of woollen textiles have shown a marked recovery, England in particular purchasing large quantities of them. Though the Italian output of artificial fibres has extended enormously and greater use Las. been, made of reworked woollen rags, stocks of the sheep's staple reached a very low level. Replenishment, therefore, became necessary. Wool is still needed, but unfortunately the Italian monetary position has becolne stringent. As a result Italian competition for wool has slackened.

There is no lack of wool to purchase, and in that circumstance a substantial advance in prices is improbable unless some special development occurs which sends commodity values generally upward.

FIRM SYDNEY MARKET

STRONG COMPETITION

(Received February 15, 8.50 p.m.) SYDNEY, Feb. 16 At the wool sales to-day there was strong competition from Japanese, Continental and Yorkshire sections. Tho market was very firm. Greasy Merino made up to 23$ d. A total of 9951 bales were offered and 8208 sold, including 1166 privately. \ - WELLINGTON AUCTION THIRD FIXTURE TO-DAY The third Wellington wool sale of the season will be held to-day, when a catalogue of 27,289 bales will be offered.