OUTLOOK FOR WOOL

New Zealand Herald, Volume LXXV, Issue 23233, 30 December 1938, Page 8

OUTLOOK FOR WOOL

The great bulk of New Zealand's wool clip has still to be offered at auction during the first few months of the new year and, judging by the present outlook, the satisfactory tone in evidence throughout the first round of sales is likely to be fully maintained. The auctions at Auckland, Napier, Wellington, Christchurch, Timaru and Dunedin have resulted in a progress return to growers of about £2,250,000 and it only requires current rates to remain firm for last season's total cheque of £8,793,873 to be exceeded by a substantial amount. A\ool is still in keen demand and, although the market is notoriously susceptible to outside influences, growers have every reason to look forward to the remaining sales with confidence. English trade comment, published this morning, fully reflects this hopeful outlook. It is pointed out that price fluctuations during the past year have been within narrow limits and that, although there has been a reluctance to do anything substantial in the way of speculative buying, a "safety-first" attitude has been adopted which is having the effect of stabilising prices. This is all to the good. The ruling rates, coupled with a healthy demand for medium and low crossbreds, are of great potential value to New Zealand and, although difficulties arising from increased costs have still to be faced, it is probable that growers would prefer a degree of stability at reasonably remunerative rates to a sharp increase with the future prospect of violent fluctuations. The English trade reports a steady consumption and an appreciable reduction in stocks. As a result, the new year for the wool growers of the Dominion should at least be reasonably happy.