WINTER SHOWS

Otago Daily Times, Issue 23500, 14 May 1938, Page 3

WINTER SHOWS

LIST OF DATES Winter Show dates fixed for the various centres to date are as follows: May 4-14.—Auckland. May 24-28.—Hawera. June 3-9.—Dunedin, June 14-18.—Palmerston North, July 2-9.—Timaru, The Wool Market

Prices for well-grown, good-length wools Of medium to fine quality were 5 'per cent, higher at the Sydney sales for the first week in May, compared with the closing pre-Easter sales of April 7 (says the Sydney Morning Herald). Values for other classes showed an advance of par to 5 per cent Competition was keen and well distributed. The Continental section, particularly France and Germany, was noticeably active. Italy and Belgium were appreciable competitors. Yorkshire operated with freedom. Japan freely purchased good-length lines showing only a limited amount of vegetable fault. Her activity has been practically confined to those types this season, her requirements differing from two years ago, when faulty topmaking types commanded the lion’s share of her competition. In present circumstances, she wants as much actual wool as possible for the money she has available.

Probably the greatest influence on the market recently (the Herald continues) has been the certain reduction ini Australian supplies next season resulting from drought conditions. The recent rain, even if followed by further falls, cannot cause a full recovery in wool production. Two months hence the main shearing Will start in the plain areas of the State, and the greater part of the new clip has been growing under sparse pastoral conditions. Losses of sheep have not so far been heavy, but the stock will cut a smaller weight of wool per head in most „ districts. The threatened /.unusually large carry-over stocks at June 30 next were a factor in making consumers nervous regarding the future, but a smaller clip will, to a great extent, if not wholly, offset them. The keener Inquiry from the Continent and Yorkshire indicates more confidence in those quarters, partially as a result of the calmer international situation in Europe and also owing to the more hopeful trading outlook in the United States.

Factors In Creating Demand Theoretically, the demand for the raw material should depend entirely on the inquiry for manufactures (says the Sydney Morning Herald), but actually trade does not fully function on those lines. The Cost of raw material is the basis of prices for mill products. If the former is uncertain, the buyers of goods become nervous and refrain from purchasing, fearing that competitors, may subsequently secure wool at lower figures and undersell them. That is why the recent improvement may give some fillip to the sales of goods. Those requiring them may be induced to replenish stocks, fearing that prices will move to a higher level. The unusually large quantities of wool unsold month by month- this half-year unquestionably made buyers nervous regarding values. Latterly, the effects of unsold wool stocks have been a smaller influence on traders’ minds. Production in Australia. and probably South Africa, next season is certain to show reduction. Adverse seasonal conditions have, to some extent, proved a market corrective. The amount which Nature, through poor pastoral circumstances, has taken out of one pocket, may, to some degree, be replaced by a better level of prices for the smaller quantity of wool grown, but as yet that monetary replacement is not appreciable. Continued rain, followed by weather warm enough to grow good winter feed for the stock, would be considered the most favourable development for pastoralists at this juncture.

British Exports Board of Trade returns covering January-February of this year disclose a reduction in United Kingdom exports. ' Shipments of tops were 4.923,0001 b, being 3,067,0001 b less than a year previously. Worsted yarn exports were 3.225.0001 b. a decrease of 1,349,0001 b. The exports of woollen and worsted dfabrics were 19,799,000 square yards, a decline of 3,477,000 square yards. Smaller sales to Europe, the United States, and the dominions were recorded. Simultaneously with the reduced exports, an appreciable falllng-off was noticeable in the quantity of imported wool retained in the United Kingdom. The quantity for the two months was 113,169.0001 b, a decrease of 22.283.0001 b compared with the cprresponding period of 1937, and a reduction of 32.920 0001 b on the 1936 total. Despite the decrease in exports of mill products, the stock of wool in Great Britain was not heavy. A revival in sales of manufactures was necessary, however, to stimulate the need for the sheep’s staple, and

this week’s improvement in. prices, if it is maintained or shows further development, should encourage turnover in mill products. Combing Profits The easing in turnover at the English mills during the past year is reflected in the reduced profits earned by Woolcombers, Ltd., a Yorkshire commission combing concern, which has made handsome profits for some considerable time. Net profit for 1937 was £114,947, compared with £194.104 for 1936. The dividend and bonus declared for the 12 months was 2U per cent., the 1936 distribution being 261 per cent. A year previously £75,000 was placed to reserve, no allocation in that respect being made on this occasion. The dividend paid, however, provides an excellent return for investors who did not pay high figures for their shares, despite the reduction in profits. Woolcombers Ltd., however, should not be accepted as a general indication of mill earnings. The organisation combs on commission, the profits on which are much above average manufacturers’ earnings.

United States Position In view of recent movements in the United States., figures published by the Imperial Economic Committee are of interest as showing the position of supplies in that country. Stocks of apparel wool at December 31 were 117,800,0001 b clean scoured basis, being 11,400,0001 b less than a year before, but slightly more than in 1935. As the mills in the early part of this year were only working at about 50 per cent, of capacity, the raw material supplies were ample. A decided recovery in manufacturing activity is needed to improve appreciably the American situajion. In December last the apparel wool consumed was only 2,600,0001 b clean scoured basis, compared with 7,000,0001 b in December, 1936, Latest advices indicate a slight regain in mill turnover, but as yet not sufficient to alter the wool position to any decided degree. Bradford figures show the effects of the trade depression in America. In January-February the exports to the United States were to the value of £178,383. compared with £848,167 during the corresponding months of 1937. Poisoning Rabbits

The eradication of rabbits by the use of poison is apparently not as easy as it would appear, according to the opinion expressed by a farmer at a meeting in Masterton to discuss the formation of a rabbit board. “A property near Masterton,” he said, “is covered with poison, but rabbits are still swarming over it like vermin on a sheep’s back. They won’t touch the poison, and you cannot make them take New Zealand Lamb in Canada '* There is room for the development of a new market for New Zealand lamb in Eastern Canada during a few months of the year, although the quantities which can be taken are limited-” This is the opinion of the British representative of the New Zealand. Meat Producers’ Board (Mr R. S. Forsyth), who has returned to London after a very busy two months in Canada. As a result of the reauction in duty on New Zealand lamb entering Canada from 3 cents to i cent ‘per lb, a shipment of 6000 carcasses was made from .the Dominiori to Saint John, Nova Scotia, and Mr Forsyth crossed the Atlantic to super* vise its sale and test the market in conjunction with the New Zealand Trade Commissioner in Canada (Mr J. W. Collins). Spirit of Ottawa The Bradford correspondent of the Yorkshire Post says that there is a strong feeling in Yorkshire that Aus-r tralla, without detriment to her own expanding wool and textile industry* might reasonably allow more generous import facilities to goods from the United Kingdom. Great Britain, he claims, is far from enjoying competitive opportunity, which the spirit of the Ottawa Agreement dictates. In the pre-depression year 1928-29 Australia imported about £1,500,000 (sterling) worth of wool textile piece goods, tie says, but the 1935-36 figure was down to £259,000, compared with £12,500,000 for :domestic production of these goods. There can be no doubt, the correspondent says, that the high degree of protection which has been brought about allows scant opportunity. for Empire goods. 1 Canadian Agriculture The exceptional business done in wheat exports in the two previous years was followed by a decline last "ir. but exports of live stock recorded a large gain. Butter production was marked by a minor decline, but production of concentrated milk showed; a large increase. Exports of wheat for the first five months of the current crop year were only 43,000,000 bushels, as against 122,000,000’in the same portion of the previous crop year; but inspections of grain in the main producing district in December at, 7.796.000 bushels were only moderately lower '.han in December, 1936, Sales' of live, stock at the markets in the; third week of January were 41,440 head, compared with 43,298 head in the corresponding week a year earlier; but this followed total sales of 2.966.000 head in the year 1937, as compared with 2,769.000 head in 1936. On the December comparison creamery butter output declined from 10,700,0001 b to 9,820,0001 b, but concentrated milk production rose from 6,835,0001 b to 9.235.0001 b.