PRICES REMAIN STRONG

Otago Daily Times, Issue 27278, 3 January 1950, Page 5

PRICES REMAIN STRONG

English Wool Market

Highest Point For Several Years NZPA—Special Correspondent Rec. 9 p.m. LONDON, Dec. 31. The year is closing with wool and top prices very strong at the highest point for several years, states the International Wool Secretariat special news service. With the Dominion wool markets closed for the end of the year recess, Bradford- temporarily affords the sole guide to the situation, and conditions here are extremely firm and in line with wool closing-prices abroad. Moreover, the market is unusually active for this time of the year and topmakers willing to increase their order books have no difficulty in doing , business at the highest prices yet paid since the war. A wool stock census taken at Bradford recently reveals the United Kingdom wool stocks to be the lowest of any since mid-war days. Commercial holdings are equal to about five months’ supply and are not large, having regard to Britain's big volume of output in wool goods. All statistical indications are that Britain is maintaining this vast output on the smallest possible working stocks of wool. This is a healthy feature so far as the wool outlook is concerned as it necessarily means that the mills are working close to the wool market and must continue to buy wool for reasonably current requirements.

Urgent Continental demands now made on the Yorkshire market for wool and tops suggest that some European countries are also working on narrow margins of stock. Yorkshire takes a soberly optimistic view of the new year wool outlook based entirely on factors of supply in relation to demand. Bradford top market quotations are unchanged on last week’s levels.