MARKET FOR WOOL

Poverty Bay Herald, Volume LXI, Issue 18551, 10 November 1934, Page 8

MARKET FOR WOOL

"TWi —.* •* RECENT LONDON SALES AN IMPROVED POSITION A note of returning 1 confidence .is struck in-a report on the fifth series of ,colonial wool ,sales, which closed in London on October 3, issued by 11. Dawson, Sons and, Company,; Limited; The course of the series was marked by- movements which were not only surprising, but somewhat sensational, the report states. The tone and atmosr phero completely changed ..after- the. first week, when hesitation and depress sion dominated.- - T-ho •unexpected advent of strong Continental demand during the second week initiated a new development, which was - keenly supported hy the home trade. Competition strengthened daily; and a sharp upward movement resulted. The surprising feature was that several derma n houses shared in. this buying movement, in spite of the,difficulty which still obtains. ia.G.orniany to get the necessary import licenses. The only explanation/, was the fact that Germany's need for wool was so apparent that it encouraged speculative operators because.of the early.possibility of the door being more widely opened. The support from France and .England was.based on two' factors —that new business was available, although at low prices, and the ■ general belief that wool was cheap and worth buying, especially in view of the fact that the spring goods, season was likely to show .a -preferential Mcmand for fine Worsteds. There was also a remarkably keen demand, for medium,crossbreds at improved prices, in spite of the. fact that merino values were so low. Although the position is somewhat anomalous the salient facts remained that all wools..were relatively cheap, and that a general confidence in the situation was returning,