STEADINESS IN THE WOOL MARKET

Timaru Herald, Volume CXLV, Issue 21216, 10 December 1938, Page 8

STEADINESS IN THE WOOL MARKET

So many factors have to be taken into account in determining the trend of the wool sales that expert reviews of the English market prospects will be perused with wide interest. The eminent Yorkshire wool-purchas-ing firm of Messrs Dawson and Sons, in a very cautious statement which is published in the cable messages this morning, expressed the view that the English manufacturers will be in need of further stocks in the New Year. At the moment, however, the wool market gives the appearance of being in a state of expectancy. There is so much talk in the air dealing with international understandings designed to provide for-the lowering of tariff barriers, and the freeing of trade relations between the more important producing and consuming countries that some important modifications in terms governing trade relations are almost hourly anticipated. The Anglo-American trade agreement for instance provides for a reduction of from 10 per eent. to 25 per cent, in the duties on British woollen fabrics and hosiery entering the United States, and that decrease should have good results on sales of Yorkshire products. It remains to be seen whether a concession will eventually be made in the duty on wool, but it is probable (hat American millmen will endeavour to have some reduction made as under the tariff the raw material is costly compared with the supplies used in other countries.

Bradford, trade with the United States reached a very low ebb earlier this year, its value for May only being £37,298, but has since revived. In July the total was £110,383, August £91,842, and September £141,725. Its highest level of recent years was £584,932. Ample scope for a further recovery exists. Late October reports indicate that trade in America in fabrics was brighter and mill activity greater.

No indication of a boom in the demand for wool for America exists in London, but the position is more favourable than last season. Uncertainty in the attitude of several important wool purchasing countries is also steadying the trend of Australian and New Zealand wool sales. At the moment, there is no buoyancy in the English markets, but it is generally assumed, in all wool-selling centres, that steadiness rather than unnatural livelines will mark the wool sales in New Zealand in the coming weeks.