PROSPECTS FOR WOOL

Poverty Bay Herald, Volume LXIV, Issue 19453, 12 October 1937, Page 14

PROSPECTS FOR WOOL

CONFIDENT EXPECTATIONS LARGER CLIP PROBABLE The expectation that the new trade agreement with Germany should mean the wool industry would participate in any benefits which might accrue was expressed this week by Mr. B. J. Marquet, chairman of the Auckland Woolbrokers’ Association, who also said he could not prophesy whether a heightened German demand would result in higher prices for wool, or whether there would be any general expansion In the European market. In the absence of any setback, which could not be foreseen, said Mr. Marquet. the first wool sale in the 1937-38 season could be awaited with confidence. The general position was very healthy. Exports of wool from New Zealand to Germany in 1935 were at the low level of 5,400,0001 b, and, although last year this increased to 7,000,0001 b, the total was a good deal lower than those of 1933 and 1934, wtien totals of 45,000,0001 b were recorded. The large decreases were due mainly to the transfer of Germany’s purchases to certain smaller countries, such as China, Turkey, Chile and Brazil, and at the same time there was a pronounced fall in the stocks of raw wool available for manufacture in Germany. Substitutes for wool had increased in demand in Germany at the same time as her demand for wool lessened, he said, and it was satisfactory that Germany was prepared to expand trade, even within the bounds of a bilateral agreement. It appeared there was the probability of a larger wool clip in New Zealand this year than last, and with favourable conditions the limit of 25,000 bales should be reached at the Auckland sale on November 27.