OUTLOOK FOR WOOL

Poverty Bay Herald, Volume LXV, Issue 19666, 25 June 1938, Page 12

OUTLOOK FOR WOOL

TRADE REVIVAL NEEDED

NEW SEASON’S PROSPECTS

FAI'LTV SORTS PLENTIFUL

A revival in trade abroad and an increase in consumption will be necessary to produce an appreciable upward movement in wool prices, according to the latest report of Winchcombe, Carson, Limited, Australian woolbrokers. The review points out that although the Australian wool clip is estimated at only 2,970,000 bales for the coming season, the smallest recorded since 1930-31, the quantity available, allowing for the carry-over at June 30, will not show much change on the present season’s supply. , , , Lately the trend of the market has been easier, particularly for short, faulty wools grown under drought conditions. Lines of this type will be more than usually plentiful next season, owing to poor pastures experienced over a wide area of New South Wales, and lo some extent in a number of districts in other States. Demand from America For some years demand for woollen goods for men’s wear was stronger than that experienced for women’s fabrics. In the United States, this year, however, the position has been reversed and textiles for feminine use have sold fairly freely in the American retail stores. The demand for male apparel has been sluggish. Consumption of apparel wools in the United States during the early months of 1938 was less than half the quantity used in the corresponding period of 1937. As a result, imports of wool have been, small, being about one-twelfth of the total recorded in the first quarter of the preceding year. It is hoped, however, that the Government spending programme will cause a brightening in business. Japan’s Lower Purchases

Japan lias not bought the 500,000 bales she was expected to purchase this. Reason. The latest figures covering the stocks of wool on hand in her warehouses show a total of 30.400,0001 b. At June 30, 1937, the quantity was 103,400,0001 b. Consumption of new material, therefore, has outpaced the .supplies which have arrived, despite the increased use of artificial fibres in textiles. The wool market is much in need of a regain in purchasing by Japan. The anomaly is that the Japanese industry wants larger supplies of wool, but has not the means to buy it. The existing position of the wool market is not due to any special weakness in the situation of the raw material. Artificial fibres are being used, but two countries. Germany and Italv, which produced 357,000,0001 b of staple fibre in 1937, three times their 1935 output, have imported more wool during this season than for some years. It is by no means certain that artificial fibres have decreased the world’s wool requirements. In some ways they have increased its needs by the production of cheaper goods.