SMALLER MARGINS

Otago Daily Times, Issue 27510, 3 October 1950, Page 6

SMALLER MARGINS

Speculators’ Operations

Special Correspondent WELLINGTON, Oct. 2. Wool speculators this season are not making the same profitable margins as they have in other seasons. Their operations in the country have been very considerably curtailed since London auction prices in September have been making history.

In the “off” season it has been the practice for operators on a gate-to-gate schedule to go round the country offering to buy the new season’s clip, and there are times when farmers have been glad to do business with them, but this is not one of them. Early last month some private deals were reported on a basis of about 60d per lb for good utility type, Romney wools. Under ordinary conditions 5s a lb for this class of wool is something the farmer would find it hard to say no to, but with the existing keen market for this and other grades of coarser wools this price is probably about Is below its current value. Most of the private buying has been for urgent shipping. British manufacturers have been crowding the spot market because of a shortage of stocks, and prices at London sales reflecting this urgent immediate demand are a good deal higher than local parity. Prospects for the coming New Zealand season are good—in fact, better than ever if the present demand for crossbred wool is maintained. Shearing in the North Island will begin in earnest this month. The indications are that growers will be shearing earlier than usual this season, if the weather will permit, in order to catch the early auctions with their clips.