THE WOOL MARKET

Southland Times, Issue 19358, 25 September 1924, Page 5

THE WOOL MARKET

ANIMATION CONTINUES THE LONDON SALES PRICES CONTINUE VERY FIRM. (By Telegraph—Press Assn.—Copyright) (Australian and N.Z. Cable Association.) LONDON, September 23. (Received September 24, 11.0 p.m.) At the wool sales, there was a splendid selection of all classes and an animated market. Prices continue very firm. Scoured Merinos, Braemar (New Zealand) fetched 68d. THE SYDNEY SALES. CLOSE FIRM AT HIGH PRICES. SYDNEY, September 24. (Received September 25, 1.5 a.m.) The closing of the first series of the wocl sales was marked by strong support by all sections of the buying trade, particularly Continental agents, at prices well up to the best of the series. REVIEW OF THE MARKET. TENDENCY MUST BE UPWARD. Mr G. A. Somerville, New Zealand representative of Marshall Field and Company, Chicago, has been advised under date Chicago, August 12, with reference to the raw wool market, as follows: — “Mr Wood, President of the American Woollen Co., says as follows: Higher prices for Wool Goods.—‘My reports show retail stores all over the United States practically bare of goods. Even in New York friends of mine have found difficulty in buying, the selection is so limited. In the West, North-west, and South-west of the United States not only are the stores of textiles abnormally low, but a selection, is practically reduced to Hobson’s choice. The recent upward tendency in the world’s wool market is fundamentally sound. The United States grows about 10 per cent, of the world’s wool clip, yet consumes 30 per cent, of all the wool grown in the world. In 1923 we consumed some 800,000,000 pounds of grease wool, and as this country has done very little importing for a considerable period, when we do begin, as we surely must before long, it is not reasonable to suppose that American wool buying will reduce wool prices any in the primary markets. These markets without our help have already shown considerable strength, so that the present average of wool prices, not including carpet wools, is up some 10 per cent, the past six weeks. There is nowhere anything to indicate a recession in prices. Foreign exchanges have also advanced in view" of the better outlook in Europe. This means we will have to pay more for foreign wools, and the past twelve months we have imported less than one-half the wool imports of the previous twelve months, excluding carpet wools. As for our domestic wools, fine Ohio delaines are publicly quoted at 1.35 clean. Comparable foreign wools can be bought for 1.28 in bond, or 1.59 out of bond. When it is considered that this country grows only 10 per cent, of the world’s wools, and that foreign wools are already Tiigher than domestic wools, is it not reasonable to suppose that the tendency of prices from now’ on should be upwards ? This country is short on wools and short on cloth, and only recently has an increase in interest among buyers been noticeable. This is likely sooner or later to run to the other extreme. The general advances in commodity markets show clearly that the tide has turned.’ ”