THE TREND OF THE WOOL MARKET.

Timaru Herald, Volume CXLII, Issue 20465, 9 July 1936, Page 8

THE TREND OF THE WOOL MARKET.

Although at the moment the thoughts of the New Zealand wool growers are turned away from wool sales, the trend of the market in the Homeland, as revealed in the opening sale of the fourth series in London on Tuesday will attract attention in all wool producing countries. It is generally anticipated that the wool sales are about to enter upon a quieter period. This deduction is based on the assumption that there is no flare up in Europe threatening war. Moreover, no one can estimate the positive or negative effects the lifting of the League of Nations sanctions will have upon the commodity markets. Another uncertain factor is the attitude of Japan. But the sustained Home demand at the London sales still exerts an important influence, and so long as Britain’s export trade continues to expand, the Home demand will be maintained, and will probably be reinforced by many other countries seeking wool and wool products. The other day a Bradford correspondent indulged in these observations: The lifting of sanctions is not expected to have any immediate effect on Italian buying of wool, because foreign credits are scarce. A more important factor is that Germany has been buying very little lately, and some decrease is expected in that quarter. Permits to import yarns into Germany are being granted more freely, but only for moderate weights; while there has been a lack of permits for wool and tops. In fact, so far as the exports of tops are concerned, China has been the mainstay so far this year. Her average monthly takings have been nearly a million lb weight, and she has been easily the largest customer. Exports of tops have kept up very well, having averaged nearly 4,500,0001 b per month. Exports of yarns, however, remain subnormal. Exports of woollen and worsted tissues continue to show a steady increase compared with last year, although, of course, they are below a normal figure. One Interesting feature is an increase in trade with Japan, the exports of worsted tissues to that country in May being 441,000 square yards, compared with 162,000 square yards. For diplomatic reasons Britain has remained silent on the effect of sanctions on the Old Land’s export trade, but the losses suffered are known to be substantial. Very little disturbance has been caused in the wool market, because Italy succeeded, indirectly of course, in securing her necessary supplies of wool. Other countries, it is reported, have large stocks on hand, but because the demand is increasing in all countries the steadiness of the market may be anticipated, in spite of the unsettled international situation.