THE WOOL SALE

Otago Daily Times, Issue 23688, 21 December 1938, Page 10

THE WOOL SALE

Wool prices ano not rising yet. The first auction o\ the season in Dunedin did not ijlisclose any advance on Christchurch rates. Values were firm on those ruling at the Timaru sale fast week, but the final analysis of selling at this centre evinced a weakness which growers would be happy to interpret as a result of a particular lack of condition in the Otago city. Though they were below the Timliru rates, prices at yesterday’s sale’ show no decline on the level of valines reported for the opening auction jit Christchurch. The experience of Australian markets, in which prices! are rising, almost imperceptibly, indicates that buyers are prepared to pay for quality. But unless something quite unforeseen happens, it is [doubtful whether similar developments can be expected in Otago. , The southern clip does not seem to have measured up to its customary standards. Values might have been' better at yesterday’s auction, but fit is at least satisfactory to know that the market is holding steadily, rlither than fluctuating violently as. it has frequently done in the past. [Uncertainty as to values, however, jleads to a great confusion in the wool market, particularly at a timp when political conditions in those' countries which have been the m ainstay of our market for several, years are far from settled. But jt is conceivable that harm may be (done if growers are induced to 1 hold off the market. A weakening of values in one direction can often lead to the introduction of other, factors having a further adverse effiect, and thus a vicious circle is set u p which might lead to consequences .that are hardly guessed at when the, first causes of dissatisfaction with market rates appear. Market conditions in Dunedin have often been li stter for wool, but it may be suggested at this stage, notwithstanding a discouraging outlook for grower) 3 of fine wool, that no good purpose han be served by any withholding ojr withdrawal of supplies from subsequent sales. It may be that the level of values at succeeding sales will be better than those ruling yesterday, but the argument still remains that Continental conditions to-*lay are uncertain. And since tli»e Continent for many years has seh the pace at New Zealand sales, tig? possibility

of an Improvement In the international situation must be a vital factor in the pastoral outlook of this country. Most of the Continental countries, and the United States and Japan as well, are anxious enough to secure what they can of the New Zealand and Australian wool clips, but their interest in the market for the staple is determined largely by the risk of untoward events in the near future. Although buying countries are ready to accept supplies, all purchases must at present be made on their own terms. In such circumstances it is unfortunate that the Otago wool clip has so far been unable to reproduce its usual quality.