WOOL CLIP

Otago Daily Times, Issue 21981, 16 June 1933, Page 6

WOOL CLIP

LOWER IN AUSTRALIA PRICES RISING ( From Our Own Correspondent.) SYDNEY, Juno 8. The official forecast of the Australian wool clip for the coming season has not yet been made, but it seems certain that it will-, not he so great as was in the season just closed. Unfavourable seasonal condition! have prevailed over a large proportion of the woolgrowing country of the Commonwealth, and it is feared in some quarters that a reduction in the clip will be substantial. For example, leading woolgrowers in New South .Wales estimate a falling off in that State of about 12vJ per cent., or 175,000 bales. It is believed that the estimate for the whole of Australia will indicate a reduction of at least 300,000 bales, and may be the figure will go to 350,000 bales.

There is a brighter side to the story. Although it is practically certain that Australia will sell less wool during the approaching season, the wool cheque is not likely to be any smaller than last season, and may even be higher. During the last few weeks wool prices have advanced from 10 to 15 per cent., and as much as 20 per cent, for fine wools suited to the requirements of the United States. Experts any that the wool position is stronger to-day than it has been for years. Improvement in wool prices is attributed to three main factors —the anticipated decrease in world wool production (the South African and United States clips, it is reported will also show a decrease), anticipation of improved economic and financial conditions as a result of the forthcoming Economic Conference, and the “dirt cheap ” prices that have been ruling for wool for a number of years. Australian growers say that there is room for wool to rise a great deal more and still he reasonably cheap. Mean time the encouraging thing is that there are no huge accumulations of wool stocks in any part of the world. It is felt, therefore, that Australia’s selling policy of “ meeting the market ” instead of holding out for better prices has been fully justified. It now needs only the breaking of the dry spell in some of the grazing areas to put further heart into the groat wool industry.