WOOL.

Timaru Herald, Volume XIIC, Issue 13957, 17 July 1909, Page 3

WOOL.

DALGETY'S ANNUAL REVIEW. The annual review of the Australasian wool markets for the year ending on 30th June, which lias been published by Messrs. Dalgety and Company, Limited, with characteristic promptitude, deals in a comprehensive manner with the wool industry. The remarks under tho . various headings are very interesting, while the statistical matter has been carefully compiled. Space does, not permit of our dealing with tho compilation as fully as we should like to do, but a] I those who are in any way interested in Australasia's staple product can be recommended to apply to publishers for a copy of tho publication, which we understand will be furnished gratis. It is shown by these authorities that the oversea exports show the subtnntiiil and unexpected increase -of 69,772,1531b., but it must be borne in mind that tho exports for the year have been swollen by the carry over of more wool than usual from the preceding statistical year, and the earlier despatch of many Queensland clips this winter. As regards values, these have advanced beyond tho hopes of the most sanguine. Commencing at a level of about 30 per cent, below the opening of the previous year, prices have continually advanced, until at time of going to press fully 25 per cent, of the decline referred to has been recovered, and all things considered,' the year now closed has been a far more prosperous one for growers than they could possibly have anticipated. The. 1,657,906 bales which have been sold in Australasian markets averaged £ll 6s lOd per bale, and even presuming that the portion of the clip, which has been sent direct to London for sale., has only made a like average, the net gain in wealth to Australasia from wool alone will have amounted to £25,950,912, as compared with £26,768,952 for the preceding year, and £29,685,740 in 1906-7.

After fully considering the present outlook Messrs Dalgety and Company, Limited, say that it seems as difficult as ever, to forecast the future of the market. "With good supplies ahead, the general run of merino wools may slip back a little, yet looking hack- over a series of years, the outlook is distinctly encouraging. _ Prices seem fairly safe from any violent fluctuations for some time yet, though the cold, wet summer now being ex-ijerifiir-cci in r -rp,at Britain is not reassuring. With erosshreds cheaper than merinos, and standing at > the average price of the past 16 years, a - ■ in the next Argentine clip imminent, and the probability of such wools gradually being forced into fashion on account of their relative cheapness to fine wools, the position of the coarse grades of erosshreds seems to be a solid one, and it will bo surprising if they do not hold their ground. Any upheaval in finance or trade would, of course, shatter all and every argument adduced; but though history repeats itself in the past, it has not done so at short intervals. Likewise, any change in the present peaceful international relations would, of course, be a disastrous calamity to the wool trade, but it is to be hoped that the great nations of the world may continue to enioy the peace which now nrevails.

Summing up tlio position, they give it as their opinion that a continuance of high prices during the approaching Australasian selling season will largely depend upon how "supplies are handled on tin's side. Any delay in the offering of heavy upplies, such as might occur through a wet spring or other causes, would greatly help the position. What producers and selling brokers should aim at is to control the offerings in such a manner as to prevent the possibility of any surfeit in supplies, and this can and should he done. The factors in favour of a continuance of high prices for wool during the coining year are stated as follow: —Moderate stocks in manufacturers hands. Abundance and cheapness of money, and likelihood of a continuance of such conditions for some time. Xahirnl general' expansion of the world's trade after a period of donrcssion and economy. The knowledge that TT.H.'V. wants more wool, and is not unwilling to pay■ hieh price-; for it. Peaceful industrial and international outlook, yet large cir-

dilation of money on account of great expenditure on armaments. Growth of the desire all over the world, including Japan, China, and India, for woollen garments in preference to cotton or shoddy; and the firmness of the terminal markets.

On the other hand, forces which they mention may militate against a continuance of present rates are: —Present values for merinos are well above the average of recent years. Prospective slight increase in production of merino wool from the chief exporting countries. Dear foodstuffs; and possible resort to adulterants, on account §f the relatively high prices for raw wool.

As this well-known institution sold no less than 313,943 bales in _ Australasia during the past season, in addition to 124,130 bales in London, for the twelve months ending December 31 last; their Annual Review of the wool markets, we have no doubt, will be road with intereost.