WOOL IN 1936

Poverty Bay Herald, Volume LXIV, Issue 19372, 9 July 1937, Page 10

WOOL IN 1936

COMMITTEE'S REVIEW PJRESSURT3 OF DEMAND ' STOCKS BELOW NORMAL The countries largely responsible for the sound statistical position of wool throughout 1936 were Great Britain, the United States, and Belgium. Wool purchased overseas was mainlv (or immediate use, and, throughout the year, as far as could be ascertained, stocks, especially ol crossbred qualities, were considerably below normal in manufacturing countries. Wool supplies moved steadily from the countries of primary produc : tion at hardening prices.

This is part of the admirable picture of wool textile activity in the chief manufacturing countries in 1936, given in the annual review entitled "World Consumption of Wool 1936," issued by the Imperial Economic Committee. The achievement of hardening prices and reduced wool stocks is all the more notable in view of the reduced purchases of-France, Germany, ana Italy, the Japanese-Australian trade dispute, and the various political, labour, and economic disturbances in certain Eurooean countries. The chief factors contributing to the

development are summarised thus:— (1) A general improvement in the purchasing power and industrial conditions in some of the more important consuming countries. (2) The increased demand for wool in Great Britain and the United States (the two largest world consumers). (3) The confidence engendered by the sound statistical position of wool in the chief producing countries at the' close of the 1935-26 season. <4) The improvement—to a limited extent only—of international trade in wool products in some countries.

In almost all cases where import?! of wool increased, the demand was chiefly on the part of the home consumer, and there was no noticeable expansion in the aggregate volume ol the world's foreign trade in wool products. America Buys More The United States, which has only had n minor influence on the world market for wool in recent years, bought largely both in Australia and South America during the opening months of the 1936-37 season. The maintenance of a higli degree of industrial activity since September, 1935, reduced stocks of domestic wools and prices moved into line with the import parity price of foreign wools. In Belgium activity remained satisfactory throughout the year, resulting from \the improved economic and linancial situation, and there was some improvement in the export trade. :

Imports of wool into France during 1936 were much reduced as compared with the years prior to 1934. After the devaluation of the franc a sharp improvement set in, mainly on home

account, but it was not maintained to its full extent. Imports into Germany were also reduced. There was some improvement in exports, but trade reports in general indicate that the industry was severely handicapped by the lack of its normal wool supplies. In Italy supplies of wool in 1936 were only just over half those in 1935, and export trade in wool tissues was much reduced.

Unusallv heavy wool purchases in the first half of 1936 compensated largely for the abstension of Japan from the Australian market after June, so that aggregate imports in 1936 were only 10 'per cent below the high point reached in 1935. Stocks were much reduced and there was a further expansion in exports of wool tissues and wool yarn. Demand Vor Crossbrcds

A feature of the year was the improved demand for crossbred wools and the relatively high prices obtained for them as compared with merinos. A definite scarcity developed in the lower qualities. This may be partly attributed to the increased demand for uniform cloths, the general fashion trend towards woollen goods, the utilisation of crossbrcds in Coronation decoration goods in Great Britain, substitution for merinos in fixed price goods as wool values hardened, and the operations of Japan in New Zealand, where supplies of lower grades .are already reduced, and in South America, and ol the United States in South America.

Increased prices were the outcome of the pressure of demand upon a healthy market and there was a marked absence of speculative forward buying.

In 1936 Germany and Italy increased their efforts to stimulate home production, but although some improvement is reported output is still .small in relation to the needs of the respective industries. World production in 1935-36 was on a greasy basis 3,726,900,0001 b, as against 3,608,000,0001 b in 1934-35 and 3,861,000,0001 b in 1932-33. Principal Producers of Wool In million lb —greasy basis.

1932-33 1934-35 1035-3 Australia ] 0(51.7 1015.4 092.0 Mew Zealand 238.4 270.0 317.0 Argentine 388.0 370.0 350.0 Uruguay 112.1) 117.0 112.( United States 440.5 451.0 452.7 Great Britain 119.0 115.0 109.0 Soviet Union 143.0 53.8 141.0 163.1 52.7 German v 31.5 32.2 30.3 Italy .. .. 42.0 30.0 Rumania 43.3 43.0 42.!) Spain 78.0 •1-73.0 ■I (ifi.O South Africa 330.0 222.0 251.0 * Not available i Uno Tieial os timate