THE WOOL TRADE.

Otago Daily Times, Issue 19197, 13 June 1924, Page 5

THE WOOL TRADE.

SOME DISTURBING FIGURES* , HALT IN PRICES CALLED FOR, (From Odr Own Correspondent.) LONDON, May 1. From a strictly trade standpoint, the wool textile industry does not present any striking feature, but some relevant matters are mentioned by the Wool Authority of the Daily Telegraph. One of these is the publication by Messrs Dalgety and Co. (Ltd. of figures snowing that during the nine months ended March 31, 1924, the exports of wool from Australia and Now Zealand showed a decrease of 441,000 bales compared with the same period of 1923. In the light of the known demand for wool and the current values 'for merinos, these figures are somewhat disturbing the writer). As the Australian wool year includes the period in which the raw material grown should be arriving in the markets, it should ' give an approximate idea of the annual wool production, iujd the decrease fits in very unsatisfactorily with the general position of merino, supplies. It must be taken into account that prior to the end of March, 1925, shipments of wool belonging to B.A.W.R.A. were included in the export figures, and it is by. no means reassuring to find evidence of a retrograde tendency in the production _ ofwool in most important wool-growing countries. Information from South America, point? to Ihe continued slaughtering of sheep for mutton, and this naturally prevents any increase in flocks. That the increase required should, wherever possible, be ,in merinos, is pretty clear from the present level of fine wool values. All the leading firms in the West Riding of Yorkshire, which by virtue of the position they occupy in the trade have a thorough grasp of. its prospects, are unanimous in the opinion that the supply of wool generally in the near future will not be large enough ; ta exert any depressing influence on values.; Board of Trade returns for March eonlain some suggestive figures relative to, experts of top s to Continental and other countries. The total quantity exported during the first three months of this year was 11,612,6001 b, compared with 9,827,90011> m the same period of 1923. This increase is accounted for by larger exports to all Continental countries and Japan. Germany has taken less so fax this year than in 1913, and Japan more, but it may bo expected that future reports will show ta, further expansion of the German trade, in which there has been a .considerable improvement during recent months. • Exports to Japan are not likely to show any further important expansion. The exports for the first three months of this year, which amounted to 2,054,9001 b, aro representative of the large sales made to mat country during recent months, hut Bradford topmakers cannot expect to he really serious competitors with, the tops combed in Australia. The nearer proximity of that country to Japan gives topmakers there an advantage in respect of cost of transit. HANDSOME PROFITS. The Textile Mercury. refers to wool as a prime commercial commodity and an article . indispensible to the well-being of humanity. With the millions of workers engaged in the textile industry it naturally commands universal respect, and there is here real incentive to sheep breeders and wool-growers throughout the world to pursue their avocations with increased interest, knowing ttiati their product will find a ready sale aO .. good paying prices. Instead of low crossbred wools being cheap as they were twa years ago, they have risen at least 50 pear cent, during recent months, lifting as it) were at one stroke these raw materials out to a sound paying basis for the first producer. prices have advanced so quickly since last October (says this trade paper) i the lime seems to have arrived when the - 1 lust rise lias spent itself, and we find, I everywhere a desire to call a. halt and to consolidate what has been done. We think there is wisdom in tills. Wool values cannot go on advancing for ever, that is impossible. Wholesale fabric buyers have determined to fight every proposed advance on the part of manufacturers for their productions, and soft handling fabrics have oeea largely banned because of tne big rise which manufacturers are demanding. It simply means that no .man can afford to take recent rates in view of the very big figures which, are having to be paid for the raw material, hence comparative quietness has fallen upon . the Bradford market, which largely determines the price of the fully-made article.. The position is that for the time being then* is no advance in prospect, and these remarks apply just aa much to crossbreds aa merinos; in fact every quality of top from 4a s upwards can be bought at a fraction below the high prices asked a fortnight ago. Topmakers , spinners’, and munutactutcrS’ profits cannot compare with what importers uro making this season out of their diredk imports. In other words, the-wools bought in Australia and New Zealand since last October up to the end of 1923, and of whiohl large quantities are being re-offered itt Colemon street, show very handsome profits* “Ao doubt B.A.W.R.A. has served excellent purposes during .the past three years, ■ and it. may be resurrected under the name of Wool Control Limited and continue its act ivitiea in a somewhat different way. All ihe same the trade is looking with considerable interest to the quantity which will; be available at the coming London series, probably not more than IOO.udO bales. la the meantime, the somewhat quieter aspect . which has overtaken the market can ba taken to indicate simply a resting period, i the trade being furnished with the opportunity to consolidate its position and consume the big weights of direct arrivals. We think there are occasional signs of a little financial pressure due to heavy obligations which have to be met bv tails maturing.’* SHORTAGE IN PROSPECT. After quoting the figures received from? Melbourne' by lUft-ssrs Dalgety and Co., the Bradford Telegraph is disposed to think that the actual net. decrease in the season’? clip will be around 325,000 to 350,000 bale's.' “Whatever is the final decrease, it will be too much.” says this journal. “Thei world’s spindles and looms are crying ouli for a bigger preduction* of wool, and thia fact will be emphasised still more effeifH lively before the end of the current yeafl, It is the writer’s firm conviction that by ihe end of next September the manufao* luring world will be confronted with a» actual shortage, and supplies will bo exceedingly limited, fur below what we hav» seen during the past decade. “ It looks as if wool is being consumed faster than it is being grown,, and stock? at the end of the season will be uncomfort* ably light. Our biggest users to-day am satisfied iu-their own minds'that there is no adequate supply of wool in prospect seriously to affect values in a downward direction. The West Riding of Yorkshire is giving a good account of itself at We. inblev. and those who have had the privilege of inspecting the Bradford-mad© fabrics arg . loud in their praises regarding the smarts up-to-date cloths wliich ore being shown. “ Not all the cloths made are from merinoi yarns, although the bulk of them are. Still, design, ornamentation, and every other! qualification that stamps the cloth as firstrate will lie seen there, and wo are satisfied that anyone having a real taste , for fabrics will find such fully gratified. The Wembley show will be one of the best as far a? Bradford's standpoint is. considered, and the exhibits also of private firms will lack nothing.”