WOOL PROSPECTS

Southland Times, Issue 22993, 12 September 1936, Page 14

WOOL PROSPECTS

A great deal of interest was shown in the opening of the Australian woolselling season in Sydney last week. It could not be expected, of course, that a fully reliable indication of the values to rule throughout the roster would be available immediately, but despite the absence of Japanese buyers prices and clearances were satisfactory. The market was steady, although competition was not as keen as some judges had predicted. The Japanese threat to refrain from competing was carried out, and since Japan bought about onefourth of the Commonwealth’s total offerings last season—more than 10 times as much as she took from New Zealand —it is obvious that the absence of her representatives would have a definite effect on prices. However, a Sydney reviewer states that tlie attendance at this first sale was exceptionally large and that there was a record number of buyers and wool specialists from other states. “Before more than a few minutes had passed, it was seen that the market depended chiefly on the activity of buyers from Yorkshire,” this review continued. “It is correct to say that competition was widespread. There was a persistent demand from Germany and Italy, and it is true that bids were shouted by representatives of most other wool importing countries, but Britain was easily the dominant factor. There was a feeling that despite the tumult of many voices and the welcome competition of buyers for Germany and Italy, the European demand was somewhat disappointing. . . .Here and there one could hear whisperings of anxiety lest the competition of Germany and Italy should weaken and place the market at the command almost of one section of the trade.”

It is to be hoped that this early suggestion that Germany’s demand was disappointing will not be borne out by future sales because it was expected that she, in particular of Continental buyers, would be a bigger buyer this season. It has been predicted that Europe’s requirements will be heavier all over, and this in the face of the threat of wollstra and other substitutes. Great. Britain’s' employment figures have improved considerably and wages have gone up in most industries, and very heavy trading can be expected in Coronation year. Wages have risen in France and Germany, too, and Japan will have to obtain supplies by some means. American competition will help the market, and when Australian manufacturers begin to operate, it is quite possible that more optimistic predictions will be justified. It is recognized abroad that wool has definitely moved away from the low basis of depression times. This is supported by the fact that last season’s improved prices were well spread and maintained over the whole series of sales, which, as Dalgety’s annual review points out, was in marked contrast to the “sudden and even yet not fully explained rise” of 1933-34. There have been no indications of a falling away in Great Britain’s needs, and there, as elsewhere, stocks of raw material cannot be unduly big. It seems that producers can look forward confidently to another steady season. Since lamb prospects, too, are good, no doubt fanners who changed from dairying to sheep during the last few years will be satisfied with their decision.