PROGRESSIVE RISE

Otago Daily Times, Issue 26782, 27 May 1948, Page 5

PROGRESSIVE RISE

DOMINION MERINO COMBINGS BRITISH WOOL MARKETS N.Z.P.A. Special Correspondent Rec. 9 p.m. LONDON, May 26. Dominion merino combing wool is now commanding the highest prices which have been obtained in Britain since the boom following the 1914-18 war. In the early months of 1920 merino combing wool in London sold at nearly 140 d per clean lb, and at the same time corresponding tops in Bradford were quoted at more than 160 d per lb, these being record prices for Britain. The market to-day is a long way short of those high levels, but the current prices of Australian and South African merino combing wool of 64's to 70‘s types exceed IOOd per lb clean, and when combed into tops in Yorkshire the comparable cost of a /top approaches 10s per lb. The extent of the rise, which has been more or less progressive since dominion wool was restored to auction disposal nearly two years ago, is indicated by the fact that under wartime control the official selling price for warp 64’s tops for the British home trade was less than 48d per lb. This was possible because the United Kingdom Government was then buying dominion wool clips at fixed prices. The diUcrence between the situation then and now is that to-day world buyers are all operating for wool in a completely open market, and have established a remarkable demand for the commodity, especially in fine wools relatively free from fault. As the Dominion wool marketing seasons reach their final stages the demand appears to become more keen, and certain foreign countries in particular are bidding with an intensity which suggests that the price is secondary to the need to acquire supplies. Among the foreign countries now buying wool are Russia, Germany and Japan, the two last-mentioned under special facilities provided by the authorities which control their affairs. Most Continental European countries are also active, and the United Kingdom is supporting the market in order to maintain the high rate of wool textile production recently achieved by her factories. The widespread nature of the world demand for. Dominion wool lias more than counterbalanced the relative quietness of the United States buyers during the current season. One reason given for the present eagerness of world wool buyers is the general desire to obtain supplies sufficient to cover requirements until the new Dominion !wool marketing seasons open about next Septemebr. Dominion wool sales in London resume this week for'the final fortnight of the current series with a total offering for the two weeks of 67,600 bales. This comprises 36,350 bales from Joint Organisation stocks and 31,250 bales of direct shipments.