THE WOOL SLUMP.

Taranaki Daily News, 13 May 1925, Page 8

THE WOOL SLUMP.

THE BACKWARD SWING. ; WILL MARKET IMPROVE? AMERICANS THE HOPE. (From Our Own Correspondent.) Wellington, May 12. There is no doubt that the backward swing of the pendulum at the London pales last week carried prices too far below, consequently reaction is inevitable. Now that the first shock of the sensational drop has passed it is possible to take a saner view of the situation. All the messages received in New Zealand agree that the attendance of buyers was large, and we may safely conclude that the buyers were not present merely for their health’s sake, or to make a spectacular display. The buyers want the wool at a price, and it is very likely that the price is something above the low level registered on the opening days of the sale. Continental buyers are operating, and it stands to reason that Bradford cannot allow their Continental competitors to secure any considerable quantity of cheap wool. Bradford will force the pace and that is one point in favour of an upward movement, which, however, cannot be very pronounced because finance has all buyers severely handicapped. The hope of the market lies in the probability that sooner or later the Americans must buy wool. For the next few weeks they can rest on the domestic clip, which runs to about 275,000,0001 b., or perhaps a little more. But this is far from sufficient to meet the requirements of the wool textile trade of the country, and almost as much foreign wool must be imported. It matters not from whence the wool is obtained sq long as it is taken off the market. The Americans are not troubled in respect to finance, and they can pay for all the wool they want. When the Americans come into the market there will be a rise in values, but when will they come in?