COMMERCIAL

Poverty Bay Herald, Volume LXII, Issue 18596, 5 January 1935, Page 15

COMMERCIAL

WOE SALE PROSPECTS

CHOICEST WOOLS- CHEAPEST

Messrs. Winchcombe, Carson, Limited; report': "The Well-distributed competition Whicji (Characterised ttio closing wool sales of 1934 supplies good reason to anticipate" » ready demand at opening auctions of 1935. Indications do not point to rising" values such as were experienced 12-mouths ago, when January catalogues in Sydney averaged 20£d> pel lb, but the i'ears nave been dispelled that demand would not bo sufficient to absorb the supplies available. "The' experience of cheaper goodt stimulating sales is again being ■ seen. Of late> business has shown signs ol expansion on the Continent. In Germany me mills have continued to be well occupied. Trade in that liasbeen better than in 1933, retail' business generally, in the June-September quarter being P2 per cent, higher than 12 months before'. Australia has experienced a much curtailed volume of orders for the sheep's staple from that quarter, "but German coiisuiheiv have not been doing without' supplies. The total imports of wool, tops, yarns, etc:., front January to September last were only- 2"per cent, less than in 1933. As a matter of fact, German stocks of tops increased slightly during October. "Circumstances have compelled Germany- to search the world lor requirements, and to procure them in quarters where compensating business in goods 'can lie obtained. South Africa, the Argentine, and oilier European countries have found means of selling her raw material. Even France has sent her bulky quantities, selling her, among other lots, 10,000 bales of old slock South' American wool by means of a barter arrangement. "The absence of usual purchasing for Germany in Australia was largely responsible for the fear that the Commonwealth might not bo able to dispose of this' seasoii's clip within the seasom If she buys in other quarters she is reducing the supplies available in those direc : tions for other consumers and compelling tliem to seek ra\v material elsewhere. It. is satisfactory to know that', despite the production of 'wollstra,' Germany wants wool. Her consumption is still a factor in. the world position, though Jit is a diminished direct' influence at "Australian auctions. The Commonwealth ;is losing, however, bccaiiso German mill!men are transferring portion of their consumption, to other types, and the (■lasses of wool Australia' grows are consequently not commanding normally widespread' competition. "One' of the most unusual features of this season's sales has been the lack of normal, demand' for superfine, specialty merino fleece wools. Most wools are dearer to-day tlian during the depression years from 1930-31 to 1932-33. The highest price secured for merino fleece in Sydney this season is 20d, and some excellent lines haVe been offered. The highest class more or less luxury trade

for which specialty lines are bought is not prosperous. Interest rates are low and the incomes derived from investments by the wealthy are much diminished. That is one contributing factor to the unusual position. Sooner or later the situation in that respect will alter, hut meantime it is a most exceptional phase that the really choicest, most attractive fleece for which this countryis renowned should bo relatively so cheap. "The Sydney sales re-open on January 7. Between that date and April 11 493 500 bales are to bo offered on the market, which will bring the season's offerings to that time to approximately I.CCO.bCO bales."