OUTLOOK IN AUSTRALIA

Taranaki Daily News, 16 October 1931, Page 7

OUTLOOK IN AUSTRALIA

IMPROVEMENT IN PRICES.

Sydney, Oct. 8

It is now quite clear that the wool market has regained all that it lost in July and August, and, in addition, has made some progress' toward March levels. According to the official figures covering last week’s sales in Sydney, the average price has increased 2d a lb in a fortnight—more than £2 a bale. This week has been the 'market firm and steady, an indication that the market lias in reality strengthened, and that the spectacular rise which followed Britain’s decision to go off the gold standard was not a flash in the pan. When the Victorian sales opened in Melbourne last week all the best features of the Sydney sales were in evidence. Competititon was keen and general. The position as far as fleece wools were concerned was dominated by Bradford, Japan and the local mills. Germany was active when the better style of fine wools was offered and secured several big lots. The clip generally is easily the best that has been produced in Northern Victoria for a decade, and the growers would have had reason for very deep disappointment had not the market shown such a decided improvement. The weight cut per head in some of the districts lias been phenomenal and this applies particularly to crossbreds, all of which have been magnificently grown. It is too early to say yet whether the rise in wool values will be permanent. One expert, in a warning note, says it must be remembered that the fillip owed not only its inception, but almost the whole of its incidence, to the dislocation of exchanges caused by Britain’s departure from the gold standard. With the sole exception of Bradford, there was little genuine trade behind it. The situation , generally was very much in the lap of the gods, and few people in the trade would be prepared to hazard a guess whether the advance would be accelerated, or even maintained.