THE WOOL CLIP

Timaru Herald, Volume CXLVII, Issue 21449, 13 September 1939, Page 3

THE WOOL CLIP

BRITAIN’S DEMAND FOR WOOL INCREASED IMPORTS Of all cuntries, the United Kingdom has shown the greatest increase in wool imports during the last year. At the close of 1937 considerable concern was expressed at the reduced quantity of wool imported and retained, but that position has since been rectified. The prices obtained by growers of the sheep’s staple indicate that the English trade selected a suitable buying period for its extended purchasing. Stocks are not at present so great as to prevent further buying, but the supply situation is decidedly more secure from consumers’ standpoint. During the year ended June 30, 1939, the United Kingdom imported and retained the equivalent of 1,275,193 bales of merino wool, 24 per cent, more than a year before, and 1,027,570 bales of crossbred, an increase of 30 per cent. Despite those large quantities of crossbred, stocks of them are not great. They have been used in very heavy quantities for uniform purposes, and supplies have been depleted. The quantity of merinos on hand is greater than a year ago. The level of prices for merinos, however, should tend to attract consumption to them. They were being used with considerably more freedom until the international situation halted new business. Crossbreds have for some time relatively been dearer than merinos. Careful Government Buying The most noteworthy feature of recent business on Government account in England has been the care taken to secure goods at current values. In June the British Government bought 3,000,0001 b of the finer crossbred tops, the purchases being made from combers by a single organisation, the purpose being to prevent an undue advance in prices. Manufacturers are not being denied profits, but rigid care has been exercised to see that purchasing is effected on a commercial basis. It was found that if orders for fabrics were placed, competition among manufacturers for tops and the raw material to make them tended to force prices. The tops were accordingly bought by the Government and allocated to millmen for conversion into textiles. No one can complain of that care in public expenditure. Results From New Boundaries The questions of a change of Government in countries in Europe is of concern to growers of wool in Australia. In Germany and Italy the use of artificial fibres has been developed to the most marked degree, and areas which come under the influence of those two nations are likely to be similarly affected. Germany in 1933-34 purchased 415,031 bales in Australia, and exports to that country in 1937-38 were 125,057 bales. The decrease in the quantity has been partially caused by the use of substitutes, and also by the transfer of her orders to other countries willing to sell her wool in exchange for her manufactures. In 1937-38, 60,269 bales of wool were shipped to Czecho-Slovakia from Australia, but the total for the last season was 25,127 bales. Exports to Austria in 1936-37 were 19,286 bales, and in 1938-39 225 bales. Poland has been a consistent purchaser of the Australian clip, taking an average of 43,580 bales during the last five seasons. Continued peace for her would consequently be of benefit to the wool market..

She grows a clip of about 40,000 bales, chiefly coarse wool. Under special Government encouragement the quantity grown has increased by 33 per cent, since 1934. Her consumption in 1938 was in the vicinity of 200,000 bales. During the same year she imported 5,500,0001 b of tops. She produced 20,000,0001 b of tops, 75,400,000 lb of yarn, and wool and mixed wool fabrics weighing 46,100,0001 b. The Polish industry, is, therefore, an important factor in the wool-using world France’s Importance During last season Australia exported 574,717 bales of wool to France, that country’s total only being exceeded by the quantity shipped to the United Kingdom. It is to those two consumers that the Commonwealth must look for the auction purchase of approximately 50 per cent, of the coming clip. French activity has shown a decided regain this year. Production of tops increased by 32 per cent, from January to June, and output was well maintained during July. Despite that fact, stocks of tops have not increased. Exports of tops, yarns, and fabrics all improved, the former to a marked extent. Larger imports of wool were made during the season, and the stocks on hand at mid-July at the combing establishments were generally greater than a year before. They were necessary to cater for the expanded business. In the case of a few concerns, however, working time was reduced in order to spread the use of the taw material until the period when shipments of the new clip arrive. The revival in French mill consumption has been partially caused by Government orders, but has also been attributable to improved business in civilian goods, both on export and home account.