OUTLOOK FOR WOOL

New Zealand Herald, Volume LXXV, Issue 23124, 24 August 1938, Page 9

OUTLOOK FOR WOOL

POSITION OF CBOSSBREDS ... I. .' : ATTITUDE OF THE TRADE AUSTRALIA AND,-JAPAN [from OUR OWX coiiftfififpxfifeKT] LONDON,,August 3 An interesting feature o£jfche recent London wool sales, says tlie .Textile Mercury and Argus,' was that the demand for good greasy crossbreds -Vas greater than the supply, and as a.resulfc there was an advance of from 5 to 10 per cent On opening rates. "The broad facts of the situation are that, although buyers of yarns and finished goods are still showing reluctance to build up stocks in anticipation of a demand or in order to insure against a possible advance in values, there is a different attitude of mind at the raw material end," it is stated. "There seems to be no hesitation in buying wool in excess of current needs, which is a further illustration of the current belief that values are now somewhere near rock-bottom." • The Yorkshire Observer-Declares that what the wool .textile industry needs is an atmosphere of confidence, at the manufacturing end, similar to that which is now evident at the raw material end. The failure of the buyers of finished goods to respond to the soundness of the wool situation is the "fly in, the ointment."

There has been a gradual and continuous liquidation of accumulated stocks of manufactured goods in the hands of manufacturers and riierchants. There are many outstanding- contracts the taking up of which is long but deliveries have improved, and the way is slowly but surely being cleared for the placing of new business. The outlook is dependent on conditions outside the control of those, engaged in the industry. The turnover will not be normal in the piece trade until international complications are straightened out, and there is a freer access to the markets on which English exporters mainly depend, especially on the Continent and in the Far East. Commenting oil industrial activity,' the Imperial Economic Committee 6aya that the United States wool*textile industry showed a definite improvement in July, and this country is,again purchasing carpet wool abroad, but in the United Kingdom activity remained low, in spite of the firmness of prices. This was also true of most of the other .consuming countries, with the exception of Germany and to some extent of France. Stocks of wool remained very low in Japan in April, os compared with those in the same month of earlier years. The new trade agreement with Australia mav result in the purchase of between 350,000 and 400,000 bales in 1938-39, as compared with-Australian shipments to Japan in 1937-38 of about 280,000 bales. A new order- compels Japanese manufacturers to mix 30 to §0 per cent of staple fibre in wool cloth for noma consumption.

OHRISTOHURCH PRICES DOWH HALF BRED SCOURED 12JD [BT tELEGRAPH—£RESS ASSOCIATION } ~CHRISTCHURCH, Tuesday

As 1 happened at', the Auckland sal© earlier this month, only about half th& catalogue of 1800 hales was sold at the annual Winter sale of wool eddmentg this afternoon.. Mo|t of the main butnig points except Japan were represented, but competition was nfit very knen at any stage and the sale wag over in an hour aiid a-half. Prices werQ well below those at the Corresponding sale last year. . The catalogue . comprised mostly crutchings, but with a small. selection, of pieces. There was very little-fleece wool and most of it was of indifferent quality. The quality of the erutchingn was mixed. >'•'

The chief result of Japan's absence from •the. market was the slack inquiry for halfbreds, of which Japan is usually the main buyer. The offering of coarse wool cruteliings -was very small and the demand for them was good. Best condition crossbred crutchings were in fair deninud, but other qualities were absolutely neglected* , Although prices were not-high, fleece wools sold consistently well on .the. day, . The unusually heavy number "Of passings was to a srtiall extent .due to growers having anticipated a slightly better market, but mainly to the condition of the wool offered. A good deal < of it was showing signs of a very wet -season, being of poof colour, dirty and stained, and for this there was practically no demand at all. Many of the lots were passed without a bid. The best price at the sale was for an attractive lot of seven bales of ha If bred scoured pieces. The best price last year was 243 d. Greasy halfbred fleece made up to lljrl (21d last year) atid Merino made up to lid (19jd last year'*. Halfbred cruteliings sold to 9sd (15r1) and crossbred crutchings to 7-Jd (15d). QUOTATIONS FOR WHEAT LONDON AND LIVERPOOL FUTURES IN CHICAGO LONDON, August 22 Wheat.—Cargoes are lower and pareels are easier. Futures.—London: August, 2Fs od a quarter; November, 2os 3d. Liverpool: October* 5s Bld. a cental; December, 5s 2Jd; March, 5s 03d. CHICAGO, August 23 Wheat.—September. 631 cents a bushel; December, 65| cents; May, 68$ cents. GISBORNE MAIZE MARKET FIRM AT 5/-V [BY TELECiftAftI—OWN CORRESPOKDESt] GISBORNE, Tuesday The shelling of maize has been affected by the long > spell Of wet weather and the position was' Ro acute a few weeks ago that a slight premium was beina: offered by -merchants above the minimum rate of 5s a bushel f.o.b. Tt is doubtful whether any of the Gis- . borne growers secured this premium, for practically, no supply was available here at the time. The position was much the «ame in the Bay of Plenty, where there were 21 wet days in July. Gisborne had 24 Met days during the same month. With good weather from now on supplies should be sufficient lor requirements. The demand is for prompt shipment, wit" little inquiry for forward business, merchants appear-. in ,T content to buy trom hand to mouth. Owing to ' the present short supply, the market is firm at the minimum rate of os a bush'd. BRADFORD MARKET BUSINESS STILL SMALL LONDON, August 22 On the Bradford market to-day thera was more inquiry, but business wa§ . small.