ON THE EVE OF THE SEASON’S WOOL SALES

Timaru Herald, Volume CXLIII, Issue 20895, 26 November 1937, Page 8

ON THE EVE OF THE SEASON’S WOOL SALES

[All eyes in New Zealand and Australia, and many eyes I in wool selling and manufacturing circles iu the United Kingdom, as well, will be turned to Auckland for the first wool sale of the present season, which is fixed for to-morrow. Generally speaking it has been difficult to forecast the movement of the world wool market. In Australia, although price levels are not up to last year, the market has been fairly steady, and no serious weakening has been experienced. The latest information from Loudon would seem to suggest that the sales are continuing before an average attendance of buyers and the market remain unchanged, or if anything a little lower. Continental and Bradford buyers are the chief operators. Average selections of wools was offered, but their is not very much animation. It is because of the condition of the London market, that the opening of the New Zealand sales is awaited with some little anxiety. It is interesting to note, however, that preliminary estimates of wool production for the 1937-38 season for Australia, South Africa, and New Zealand indicate an aggregate increase of 30,000,0001 b, as compared with last season. The Imperial Economic Council’s estimate for New Zealand production in 1937-38 (313,000,0001b —greasy basis) shows an increase of about 10,000,0001 b, as compared with 1936-37. Official estimates of production have not yet been published for the South American countries. Seasonal conditions have been somewhat uneven in Argentina, but changes in production are not likely to be considerable, while trade reports from Uruguay indicate that the current clip will be well grown, and probably somewhat in excess of that of 1936-37. Sheep numbers in Turkey have shown a further increase in 1937, which will also be reflected in wool production. In the United States wool consumption showed some improvement in August, as compared with July. The restriction of business in the men’s wear section has resulted, however, in reduced mill activity during September and October, and though the women’s wear section is in a relatively more favourable position, there has been a general decline in prices of finished goods. Business placed by the home trade in tiie French industry has been much restricted, but a sharp increase has taken place in the volume of export orders since the recent devaluation of the franc. Little change has occurred in Germany where most sections of the industry are well employed. Stocks of wool and yarn are considerably above normal in Japan. The newly-created Trade Council in Japan has been given the power to restrict imports of wool (other than Australian), but no details of the nature of volume of such restrictions have yet been published. The output of staple fibre has considerably increased in recent months and trade exports predict its increasing use in the wool textile industry. But the market generally is overshadowed by the uncertain international outlook, and until the selling season opens in New Zealand it will not be possible to say just what effect wars and rumours of war in the East and in the West are likely to be on the operations of wool buying countries.