WOOL PRICES HARDEN IN BRITAIN

Otago Daily Times, Issue 27450, 25 July 1950, Page 8

WOOL PRICES HARDEN IN BRITAIN

Commerce

New Zealand Press Association Special Correspondent LONDON, July 24. Bradford and London wool markets are both responding to strong features of the Dominion wool statistical situation, which become increasingly apparent since the Dominion marketing season ended, states the International Wool Secretariat special news service. The United Kingdom and European consuming countries are now feeling the full effects of the joint organisation’s limited ability to furnish wool for the period when the Dominion markets are temporarily at a standstill.

Heavy burry wools in London are bought with an eagerness normally reserved for better types, and the manner in which home and overseas buyers are competing, suggests genuine concern in some quarters over the problem of acquiring sufficient wool to keep their plants running until the new season’s supplies arrive. Prices are hardening on supply and demand factors alone, although it is possible that users are taking a mental account of the possibility that the supply situation might become more acute if defence measures here or elsewhere increased the aggregate demand for wool.

In the Bradford market, some large topmakers are not offering tops for sale as they have sold all that their existing wool stocks permit and they will not offer more until they buy further wool supplies. This is responsible for increased interest in offerings of firms still prepared to sell and there is a steady trade at prices showing daily movement against buyers. Compared with last week Merino tops have advanced in some cases 5d to. 6d per lb, while medium crossbreds are up 4d per lb, this being one of the largest advances in any week of • recent months. Even so, it does not keep pace with the wool price advance and Merino tops would be another 6d dearer if quoted fully in line with London wool costs. British mill activity maintains a high level and official figures of United Kingdom wool stocks at May 31, show them to be the lowest recorded level for the past two years, the decline Being principally in crossbred wool stocks.