WOOL PILING UP

Timaru Herald, Volume CXXXVIII, Issue 19953, 10 November 1934, Page 15

WOOL PILING UP

AUSTRALIAN MARKET Because of the disinclination of growers to sell at the prices which have ruled this season, huge quantities of wool have been piling up in the stores. On September 30 there were 881,960 bales awaiting disposal, compared with 671,145 bales at the same date a year ago. The National Council of Wool Selling Brokers of Australia reports that sales of wool at Australian auctions, in the season to the end of last month agregate 279,793 bales, against 395,691 in the corresponding term of last year. New season’s wool sold aggregated only 160,000 bales, against 359,086 bales last year. These figures illustrate the weaker market. The average price of wool in Australia for September was only 8.79 d a lb. Since the beginning of the season the figure was 9.13 d a lb. Woolbuyers are extremely dissatisfied with the small offerings at the new season’s auctions: Unless sales are speeded up buyers believe that not only will the revised allocation to Christmas fail to be reached, but that there must inevitably be a big carry-over at the end of the wool year on July 31. They estimate that 120,000 fewer bales have been sold than at this time last year. With an increased clip of about 200,000 bales, and with a carry-over of 190,000 from last year, some of the leading buyers submit that as far as the selling of this season’s clip is concerned, apart from prices, Australia has got into arrears by more than 500,000 bales. Selling brokers do not accept responsibility for this position. They state that it is due primarily to the disinclination of growers to sell their wool at the heavy reduction in prices, compared with last season’s auctions. As soon as the market gives indications of an upward trend there will be much freer selling and larger catalogues. If the present conditions persist, overtures may be made to the Commonwealth Bank through the Federal Government for advances to individual growers to meet their >bligations until their wool is sold. Before the elections it was disclosed that tentative negotiations of the kind had been entered into, and that the amount likely to be involved amounted to several million pounds.