MORE HELPFUL OUTLOOK

Timaru Herald, Volume CXXXVII, Issue 19667, 8 December 1933, Page 6

MORE HELPFUL OUTLOOK

PROSPECTS FOR COMING SEASON FALL IN WOOL OUTPUT . ANTICIPATED. Prospects for the coming production season are more hopeful, generally speaking, than they were at this time last year, according to the Abstract of Statistics for November. In a review of the business statistics for October it is stated that, generally speaking, business indexes are about the same level as in the same month last year. For some months past there has been a considerable improvement in the wool situation, and a considerable fall in world production of wool during the season is anticipated. There has oeen a decrease of approximately 10 per cent, in New Zealand as compared with the season just past, which is less than is disclosed by preliminary estimates for Australia and South Africa, drought conditions affecting the outlook in South Africa, and, to a certain extent, in Australia also. Stocks of greasy wool in New Zealand on. October 31 were estimated at 40,500,0001 b, as compared with 68,000,000 lb on the corresponding date last year. Decreases in stocks of wool as compared with last year were reported also from all other main wool producing and selling centres, greatly increased activity in the woollen and worsted manufacturing trades in recent months having reduced stocks on hand considerably. The realisation of considerably enhanced prices for the current season's clip appeared assured. Prices for fat lambs at sales throughout New Zealand during October showed a marked increase when compared with prices at sales during the same month of last year, extra prime lambs selling at from 24/- to 25/-, as compared with from 13/- to 18/- last October. The meat market in London late in October and early in November was quiet, supplies of home-killed lamb being still available, and buyers operating from hand to mouth pending the arrival of the new season’s shipments. Favourable weather promoted a good spring growth of pastures in most dairying districts, gradings of butter and cheese during September and October showing a marked advance on the figures for the corresponding months of last year. Butter prices on the London market were somewhat easier than was the case three or four weeks ago.

It was noteworthy that, while exports of butter from New Zealand during the last three months were 82,544 cwt., or 18 per cent, in excess of exports during the corresponding period last year, Australian exports during July-September were 146,900 cwt., or 44 per cent, lower than during the same period last year. The volume of internal trade in New Zealand appeared to be responding to the stimulus of improved prospects for the incoming production season. The amount of sales tax collected during October was considerably in excess of that recorded in any other recent month, indicating an increased volume of wholesale trading. The operating revenue of railways for the period ended October 14 was in excess of operating expenditure during that period—an unusual occurrence during that relatively slack period of the year. The tonnage of cargo carried by coastal shipping in October was, however, lower than in September. The value of bank debits placed to individual customer’s accounts showed an increase over the September figure, indicating increased monetary turnover. The ratio of free to fixed deposits was still, however, abnormally low, no improvement being evident as yet in this measure of the flow of capital to industrial enterprise. Mortgages registered during October showed a slight increase, both in number and in value, as compared with September; while land transfers indicated a small increase in transfers of both town and country properties. Exports during the month of October exceeded imports by £107.000 in sterling, or £134,000 in New Zealand currency. For the expired 10 months of the calendar year 1933 exports of merchandise exceeded commodity imports by £12,700,000 in New Zealand currency or by £10,000,000 in sterling.