PROSPECTS FOR WOOL

Taranaki Daily News, 21 December 1929, Page 11

PROSPECTS FOR WOOL

A CONFIDENT FORECAST. REASONS FOR LOWER PRICES. The course of tlie wool market during last season and the present prospects were reviewed by Mr. E. W. Parker, in his address at the annual meeting of Dalgety and Company in London, on November 14. Summarising the results of the 1928-29 season, Mr. Parker said that although the Australian and New Zealand sales were made at a definitely lower rate of values, especially during the latter half of the selling season, a substantial increase in the volume of wool realised proved a material compensation, and in the final analysis the wool cheque was the second largest ever received for the golden fleece in Australia and New Zealand. In spite of an all-round decrease of £3.9s od a bale, the total wool cheque was £69,339,438, or a decrease of £4,538,424 as compared with the record result of 1927-28 wool-selling season, when £73,877,862 was secured. ' .. After referring to tlie decline in prices at the opening sales of the present season, Mr. Parker continued:—“There have been many adverse factors militating against a continuance of the high prices which were ruling for raw wool last year. In the first place, values of the raw material had been forced up to an unhealthy level, which restricted business and inevitably led to the use of cheaper substitutes, such as artificial silk, etc. Then there came the depression in trade, and as prices be<ran to fall lower and lower an entire lack of confidence was felt, and stocks of tops on the Continent and of the raw material here began to pile up. It is as yet impossible to say whether bottom has been touched, but with the curtailed offerings in the primary markets, which means spreading out the selling season over a longer period than usual and thus permitting the extreme financial burden of lifting the clip to fall less heavily on banks and financial houses, there appears to be a good chance of wool recovering some of the lost ground —indeed it has begun tx do so already. It is a cheap commodity now, and, all things being equal, I am sure that we would much rather use wool in our clothing than any of the artificial substitutes which from time to time are put on the market.” Quoting the latest sheep returns — Australia 105,747,418, against 98,939,657 in 1927, and New Zealand, 29,011,447, against 27,133,8'10— Mr. Parker said:—“These are important increases and very satisfactory, but I do not think for a moment that there will be too much wool grown in the world. Given normal trade I think every bale can be absorbed, but in order to achieve this I think growers will have to reconcile themselves to a lower level of prices than has been ruling for the last two or three years.” The chairman added that Dalgety and Company continues to be the largest wool-selling institution in the world. In 1928-1929 it sold in Australia and New Zealand and London 5'29,181 bales, against 495,122 bales in 1927-28.