DOMINION WOOL PROSPECTS

Taranaki Daily News, 31 August 1933, Page 16

DOMINION WOOL PROSPECTS

DIFFERENCE IN CONDITIONS. MERINO AND CROSSBRED. The higher prices in Sydney for Merino wool this week have increased optimism in the wool trade and brokers are hopeful that the strength of this market will result in an improvement in the market for crossbred wools when the New Zealand selling season opens in November. Broker? in Auckland, however, emphasise the difference in grades of the Merino wool produced in Australia and New Zealand crossbred wool, which comprises about 95 per cent, of this Dominion’s production. Values of the finer wool have remained on a much better level throughout the long period of depressed prices, while the present Sydney sales are the first large offerings of Merinos since last season. The improved prices now being registered in Sydney bring Australian levels on a parity with and slightly better than the advanced rates attained at the last London series which closed in July. London values have shown a considerable improvement this • year. In May there was a rise of approximately 15 peft 1 cent, all round, followed by a further appreciation of about 30 per cent, in July, a total advance of 45 per cent. The Australian market has moved in sympathy, with similar advances at the June and the current sales. While a favourable factor, present developments in Australia are not considered an accurate guide to the possible trend of the crossbred market. Shearing has yet to start in New Zealand. Some will be done next month, but the bulk takes place in October in the northern districts and during November, further south. Just prior to the opening of the New Zealand sales on November 27, however, sales commence in South America and these are usually regarded as the best indication of the possible trend of New Zealand business.

Nevertheless, it is considered that there is a healthier tone in the market generally which augurs well for the prospects at the forthcoming sales. Important factors governing this are the large reduction effected in the carry-over of New Zealand wool last season, when stored wool was lowered by 85,474 bales to 160,863 bales, and the depletion of flocks by the abnormal killings of breeding ewes in the 1932 meat export season. Further, fleeces in both South Africa and Australia are reported to be considerably less than last season.