THE WOOL MARKET

Poverty Bay Herald, Volume LV, Issue 17238, 19 April 1930, Page 14

THE WOOL MARKET

PAST SEASON REVIEWED !

MORE HOPEFUL OUTLOOK I

The- sheep' returns issued last year showed an increase in the flocks, and it was evident that if the winter was favorable the clip of the season 1929-30 would show a substantial increase on the clip of the previous season, but until the wool statistics are available it will be impossible to say whether there, has been any expansion in wool production. Jl must, however, be remembered that last winter in, the Wellington district was a difficult one for wool growers. The heavy growth of grass required more cattle than were available in many parts to keep pastures in order. This comhined with frequent cold snaps, resulted in hoggets not doing well during the winter, and there was considerable mortality. Older sheep weathered the winter, but the growth and staple were not, as good as in past seasons; there was evidence of tenderness, and the wool was not attractive. Furthermore, it was short in weight, this being roughly estimated at lib. per fleece, or about 12£ per cent The quality of the wool was poor and nothing like equal to an average season's clip. SEASON'S DECLINE IN PRICES

The sales began in November with an unexpectedly good tone, largely due to the Australian mills evincing a demand for bright crossbreds. America also was an active opoiatorl'or this class of wool. This gave a bright but false tone to the opening sab at Wellington. The average price realised at the November sale was £l6 3s per bale, .and 11.225 d per lb. After that, prices showed a tailing tendency. At the December sale super crossbred wools realised November parity, but the prices for all other grades sagged, tin drop being about Id to The averages for this sale were £ls 19s 3d per bale, and 10.749 d per lb. In January there was a further drop of Id t<i lfd, the averages being £l3 15s 7|d per hale, and 9.284 d per lb., and compared with the opening sale there was a decline of £2 7s llfd per bale. At the sale scheduled for February, but which was held up by the buyers, and eventually took place on March 3 at Wanganui, there was another drop in values, and or. this occasion it amounted to |d lo Id P et " 'h., the averages being £ll 8s 102 d per bale and 7.839 d per lb. At the March sale there was another recession in prices, estimated at an average of Id per lb. The official averages for this sale are not yet available, but the average per bale cannot have been much over £lO. This was the worst sale of the season as regards prre, for at the sale hold this month values showed an improvement.

BEDROCK LEVEL?

It is considered that wool reached the bedrock level at the Wellington March sale, for at the sales held at Wanganui, Timaru, and Dunedin subsequently there was » progressive improvement in prices. At the London January series of sales the closing prices showed a 5 per centadvance on opening rates, and again at the March-April series a similar movement was recorded These definite movements seem to warrant the opinion that wool has turned the corner, and it will be the wish of everyone that this will he confirmed at subsequent London sales.

THE CARRY-OVER

. The recession 'n values from December to March inclusive naturally caused growers to take some action, and in Wellington, Nr-pier, Wanganui, and Auckland a fair quantity ,of wool, it is said, is held over, but in the South Island growers were more inclined to meet the market, and it is believed that there is very iittle wool held over in the south. The wool in reserve must be sold by November next, and if the London market shows a Httle improvement and stabilises at the higher level; no doubt a good deal of the held-over wool will be consigned to London for sale, and with the exchange, so very much in favor of the exporter, the saving in this direction would help to pay the whole or some part of the freight. Furthermore, twitching sales will be held in New Zealand daring the next few months, and. if the prices are satisfactory, a. certain quantity of Heece wool is bound to figure in the catalogues. The pleasing feature respecting wool at fhe moment is that prices have shown a tendency to move up, after a comparatively long period on the downward run.—Dominion. ]