FUTURE OF WOOL MARKET

Taranaki Daily News, 26 August 1930, Page 16

FUTURE OF WOOL MARKET

■■■'. ,X NEW AUSTRALIAN-,, SEASON

' SITUATION LOOKS BRIGHTER/ ; ' CON'SUMPTION -SATISFACTORY. ■ (Special Correspondent.) Wellington, Aug. 22, The wool season 1930-31 will open next month in Australia, for the first sale is to begin in Western Australia on September 9. It is therefore of some interest to gather' together the views of experts and others as to the prospects. Ac the July London sales prices receded by fully /d, and this was reflected in the sale held at Wellington on Tuesday lust, when over 4000 Wiles of fleece was offered, and the. market appeared to derive its support mainly frum Continental buyers. Wool has been filtering into Melbourne and' Sydney, and reports from both places state that the wpol already to hand reflects the unfavourable season, being described as thinly-grown, light in condition and carrying a ‘air amount of dust. The New Zealand clip on the other hand should show full growth, as the winter has been cold, but there may be some lightness. We also ought to be able to show an increase in the clip. The Australian Mercantile Land and Finance Company, Ltd., in a comparative review of the.wool situation points out that comparatively low prices of raw wool have been .followed by a notable departure in . manufacture, in that, more-of it is .being used, in output, alid, ? the public.is being offered, a better article, style and design a re-calculated to re-establish- woollen wear. • Generally speaking .there has. been no relapse, in the improved feeling noticeable, for. some time 1 regarding the' future. The positionof world wool stocks is infinitely better, than that of - wheat;'simply' because Of wisdom in. acknowledging the litter futility of attempting evasion of supply and demand. Considering the- general trade depression and credit difficulties tlie pure chase of the world output of wool approximating 10,000,000 bales, even at reduced : prices, represents a feat of • thefirst magnitude. - c . . . • ' ARTIFICIAL FIBRES At various times statements have been made that the use of artificial fibres has cut severely into wool consumption, a'lid "that ’ the sheep’s staple was losing its grip ; on the woollen textile trade.. Those, fibres made remarkable-. progress, but. the fact cannot be ignored that their decided headway was made between 1923 and 1929, wlren wdol prices were high. During 1923, 97,000,0001 b of artificial fibre was produced in the world, and in 1929 production reached 404,000,0001 b, but in the latter part of the year the output of the fibres far exceeded their use. The twelve months finished with surplus stocks, m.any of the factories were in financial difficulties, and steps were taken to curtail the quantity turned out. The world consumption of wool has at least kept pace with its production. The Australian, New Zealand and African clips have passed out of. growers’ hands,..and. any wools held in London and South America are in -those centres because the owners of them will not sell at ruling prices. As far .as Yorkshire is concerned the future of wool buying looks uncertain. In Japan the position is somewhat obscure. Financial conditions in that country are stringent, but great efforts are being made to attain stability, and Japanese millmen are now endeavouring to develop a large export trade in woollen goods in China and other Far Eastern countries. Prospects for . keen con-, tinental purchasing of the new season’s wool are promising; thus it is believed that the future of wool selling is reasonably good, and there may be some slight improvement in values. The quantity of tops on hand in Continental centres at the end of May was 40,715,4001 b, being the smallest total seen at any period during the past two years. At the end of May the total French stocks of Merinos and rcossbredswere only 22,822,8001 b, or 26 , per cent., below the quantity on hand at the same time a year previously. German stocks or Merino tops were only 4,463,8001 b and crossbred 5,225,0001 b, the total being the smallest seen for a number of years and being practically 50 per cent, loiyer than at the same date of 1929. In Belgium and Italy stocks were lower. The topposition, especially on the Continent, looks very good, but it would be unwise, to become over-optimistic in regard to wool values because the tup position appears healthy.. Nevertheless the situation is promising. After the next London' sales, due next month, the position should-, be clearer. . .