DEMAND FOR WOOL

New Zealand Herald, Volume LXXV, Issue 23178, 26 October 1938, Page 9

DEMAND FOR WOOL

GOOD INQUIRY LIKEXY SUPPLIES OF CROSSBREDS NO MARKED PRICE RISE Evidence of the demand for wool is supplied by the fact that since th« season started 268,265 hales have been sold on the Sydney market* Prices have not been on a gratifying ba?is, but they have shown stability under unusually disturbing world conditions, states the latest review from Winchcombe Carson, Limited. woolHrokers. The sheep's staple is still wanted, in spite of the quantity of artificial fibres produced. The carlj' estimate of the South African clip, totalling 730.000 bales, will be improved upon, because pastoral conditions have brightened in many areas, but the increase will not total 50,000 bales. At mid-September the best parts of the South African woolproducing districts were not favourably situated for pastures. Th& ; unsold stocks at African ports on June 30 were only 27,000 bales. A few Nvears ago, South Africa produced ;over 1,000,000 bales. Merino wool will not be plentiful this season with the limited clips of Australia and South Africa.

Although trade in Great Britain has not been gratifying during the past year, stocks have not accumulated. An improving tendency for exports of wool fabrics has been noticeable during recent months. They had previously been steadily declining. Ke-armament efforts are likely to creato a strong demand for crossbreds. Supplies of crossbreds have not. appreciably, increased during the past tea years. South America and New Zealand are the largest , exporters of crossbreds. \The combined clips of those countries are larger than ten years ago, but the increaso has not been great and the trend has been toward fineness of quality. Ten years ago a difference of 4d to 6d per lb. existed between the prices of 50's medium crossbred Bradford tops and 46's coarse crossbred. The margin between the two classes is now Jd. and has not been more than Id for two years. That is an indication of the relative scarcity of coarse types.

Cotton, metals, and other commodities, as well as wool, have latterly been in better demand. That general improvement gives added soundness to the wool position and a good inquiry appears probable, but indications do not point to a marked rise in prices.

GOOD SYDNEY COMPETITION MERINOS UP It) 17JD PER LB (Received October 25. 9.50 p.m.) SYD KEY, Oct. 25 At the Sydney wool sales to-day 12.282 bales were offered and 11.220 bales were sold, as well as 2106 bales privately. Good competition continued. Greasy Merino sold to 17£ d per lb.