PRICES FOR WOOL

New Zealand Herald, Volume LXXV, Issue 23233, 30 December 1938, Page 5

PRICES FOR WOOL

FEATURES Of THE YEAR DEFINITE LOW LIMIT 1 CONSUMERS ON THE ALERT r JVrom' OTTII OWN correspondent] LONDON, Dec. 8 V™ Discussing wool prices, the Textile .4 Mercury and Argus remarks that, in looking back over tho year, two main T features had been that, even when the -- outlook was gloomiest during the crisis, actual changes had been slight, whilesno matter what the trade conditions, f there had been a definite limit below - •which prices could not be depressed, i There seemed to have been a well- "< defined low water mark below which : the tide of prices would not recede. j Prices had fluctuated within narrow \ limits, tho reasons being that the ' , dangers of war and the need for re- : armament had meant a demand for : military clothing, whilo owing to the v attitude of Argentine growers a large part of their clip had been kept off tho market. The results had been a _ scarcity of spot supplies in Europe, > prices had been affected, and stocks of medium and low crossbred wool in , the West Riding were light. This had " accentuated interest in the Auckland' sale. Little Speculative Buying Asking why thero had not been, - greater rises when business had been brisk, the article continues: "The main answer is no doubt, to be found in the prevailing reluctance to do any-; thing substantial in tho way of specu-I lative buying. Safety-first seems to-..-have been the motto right through the * trade and there has never been suffi- J cient driving force in any buying movement to lift prices to create a really sharp rise. "Round about 26Jd for 64's warp, buyers have been tempted to operate to a reasonable extent. They have re*, garded it as a safe basis. But at 27jd they seem to have taken fright andf to have retired from the field, fienco' the shallowness of the fluctuations, which havs been recorded over a period of 10 months. "The prices paid at Auckland have satisfied users that crossbred wools are. on a well-established basis and prospective buyers have found it difficult to get any concession, oven for delivery \\;oll ahead. The easing; which has taken place in the Argentine has not affected the outlook for prepared sorts. Reduced Yarn Stocks "Merinos and fine crossbreds are not showing the same strength as the 3 medium and low crossbreds. Although business is rather quiet, there is a healthy consumption, and topmakers cannot get away from the fact that wool in all markets still looks dear in comparison with the prices which can be made for tops and yarn. "One significant point with regard to consumption is that stocks of yarns in the hands of spinners have been appreciably reduced during the last few weeks. This is a healthy sign. The reduction of stocks paves the way for new business and there is a prospect of some improvement in the flow of new business in all sections of the; top market in the near future. The amount of inquiry received is an indication that users are on the alert, but failure to 'agree about price is often an obstacle to business being placed,"