DEMAND FOR WOOL

Timaru Herald, Volume CXLV, Issue 21183, 2 November 1938, Page 3

DEMAND FOR WOOL

IMPROVING TENDENCY IN BRITISH MANUFACTURE " i SUPPLY OF CROSSBREDS Reports from overseas indicate that there is a strong demand, if no marked advance in values, and an encouraging stability. Evidence of the demand for wool is supplied by the fact that since the Australian season started 268,265 bales have been sold on the Sydney market. Prices have not been on a gratifying basis, but they have shown stability under unusually disturbing world conditions. The sheep's staple is still wanted, in spite of the quantity of artificial fibres produced. South African Estimate The early estimate of the South African clip, totalling 730,000 bales, will be improved upon, because pastoral conditions have brightened in many areas, but the increase will not total 50,000 bales. At mid-Septem-ber the best parts of the South African wool-producing districts were not favourably situated for pastures. The unsold stocks at African ports on June 30 were only 27,000 bales. A few years ago South Africa produced over 1,000,000 bales. Merino wool will not 7 plentiful this season with the limited clips of Australia and South Africa. Although trade in Great Britain has not been gratifying during the past year, stocks have not accumulated. An improving tendency for exports of wool fabrics has been noticeable during recent months. They had previously been steadily declining. Supply of Crossbreds Rearmamen' effo“ts are likely to create a strong demand for crossbreds. Supplies of crossbreds have not appreciably increased during the past 10 years. South America and New Zealand are the largest exporters of crossbreds. Hie combined clips of those countries are larger than 10 years ago, but the increase has not been great and the trend has been toward fineness of quality. Ten years ago a difference of 4d to 6d per lb existed between the prices of 50’s medium cr.ssbred Bradford tops and 46’s coarse crossbred. The margin between the two classes is now id, and has not been mare than Id for two years. Thas is an indication of the relative scarcity of coarse types. Cotton, metals and other commodities, as well as wool, have latterly been in better demand. That general improvement gives added soundness to the wool position and a good inquiry appears probable, but indications do not point to a marked rise ir. prices. As far as Hawke’s Bay is concerned this year’s clip promises to be both considerably heavier and of better quality than was the case last season, factors whl ’h should result in a welcome Increase in returns.