CONFIDENCE IN WOOL

Poverty Bay Herald, Volume LXIII, Issue 19030, 2 June 1936, Page 2

CONFIDENCE IN WOOL

STABILITY OF PRICES

SMALL EUROPEAN HELP

SOUND SELLING POSITION

“On recent experience, 1111 rence approaching u t-aiaairoylie would be needed to upset the uool market to any marked extent, * sintea u report by Winehcombc, Carson, Limited, Sydney. “On present indications' the confident feeling ol graziers mav be fully retained m Hie on. look for' the sale of the growing clip.” , The rc*])ort. continues: “Wool, ],:»rtieularlv merino, is in a strong selling situation, but that fact is not alone responsible for stability in prices, 'the chief] cause is the gradual disappearance of the highly nervous financial and commercial outlook produced » the slump in values which commenced in 19:20. Prices for cotton, lead, tin, silver and wheat all bear evidence ot improvement recorded since 19.--, aru 1933. In those <lnys world thought dwelt on how low values could go, but ideas have become more or less reversed. The English wool mule was iu the forefront of this revival and its turnover continues to be highly

satisfactory. . . “The soundness ot the position is increased l.v the fact (Hat Italy has been to a great extent out id the world’s markets. Exports to Italy of wool from Australia, Smith Africa, and South America to February tins .•.eason were only one-fifth ot the total of [he previous season. In addition, German imports were 20 per cent, less in .19.'!.') than 1933. and still display n considerable reduction. France’s recpiirements have also declined compared with two years ago, though they- have improved in the past 12 months. To an appreciable degree, therefore, recovery iu wool demand and values has occurred without decided aid from the Continent. At some period business in Europe is likely to show an improvement. A revival in that quarter would add further strength to the situation or the staple. ’ ’