OUTLOOK FOR WOOL.

Timaru Herald, Volume CXXXIV, Issue 18819, 6 March 1931, Page 11

OUTLOOK FOR WOOL.

FUTURE PROSPECTS BRIGHTER. A NOTE OP OPTIMISM. A note of optimism prevails respecting the future outlook for wool prices. Businessmen closely associated with the industries in South Canterbury view the advance in prices at the recent Christchurch wool sales as an indication that we have “turned the corner” so far as values are concerned. Opinions were expressed that, on the Continent especially, there is a shortage of wool, and this is likely to bring buyers into stronger competition than has been the case for some time. One authority stated yesterday that England was not overstocked with wool t hence the active competition from Bradford at Christchurch. It was advanced as evidence in support of the • contention that there is a shortage of wool overseas, that the Australian wool values have been rising steadily for some time. The better tone of the market to-day is considered to be clearly a sign of the upward tendency of the wool barometer, and the one regret voiced so far as New Zealand is concerned, is that the improvement did not come sooner. Unfortunately many farmers were compelled to dispose of their clips at very low prices, and comparatively few farmers will benefit this season should the present improvement be maintained.

There is a disposition in some quarters to view the latest figures with reserve, chiefly for the reason that it has been publicly stated that the Japanese, who operated so freely at Christchurch, did so because they were short of halfbred supplies. One broker stated, in support of this, that he had asked the Japanese buyers to inspect some wool in store at Timaru, and had received a reply, “orders filled.” There is a disposition to view the situation with optimism notwithstanding this, and it is generally believed that there is a likelihood of a steady improvement, though the real effect of it will not be felt until next season.

With Australian stocks cleaned up, buyers are showing a tendency to operate more freely where wool is obtainable, but whether there will be any further appreciable rise before next season seems to be, at the momept, uncertain. It is considered, however, that any advance will be of advantage to growers, and will establish an air of confidence in the future prospects for wool. Butter and Cheese. One merchant stated that of late there had appeared a gleam of sunshine on the clouds which had de - pressed markets for produce sold overseas. He instanced the fact that there had been a steady advance in the butter and cheese markets, and this wag being reflected in the pay-outs to producers of butter-fat in certain parts of New Zealand. Some factories in the Auckland province had paid out as much as 1/2$ to suppliers, plus a bonus, so that this was a decided improvement on what was experienced a year ago.