WOOL PROSPECTS

Wanganui Chronicle, Volume LXXXIII, Issue 19989, 4 November 1927, Page 6

WOOL PROSPECTS

THE COMING SEASON INTEREST CENTRES ON OPENING SALES With the opening sale of the season less than a fortnight away, Waaigauui sheepfarmers are anxiously sounding the pulse of the market. The task is not a simple ojue, as may well be imagined but nevertheless there are certain factors having an important bearing cui prices, which make the outlook a brigM one. Taking the position locally, the first point which makes itself apparent, w that the season is opening up “on bare boards” or, in other wonds, witnout any of last season’s wool in store. This position obtains throughout the country, the rising market of last season having seen nil reserves realised, with a consequent clearance of stocks.

But there is another factor which looms large on the horizon. It is the production from the continent across the Tasman. Last year Australia sold 3,000,000 bales, the clip being a record but the Commonwealth farmers have not made a good start this season, with the result that it is estimated that the clip this year will be djown by about 250,000 bales.

The Home Trade There is also an improvement in general trade conditions and as regards the textile industry an increase in exports is now making itself apparent. Buk the question of price level must always be borne in mind. In the last report to hand from Messrs H. Dawson and Co. it is stated that the future of wool values is as perplexing as it is vital. Despite the fact that the largest clip ever known had been so rapidly the present level was the cause of serious misgivings. In England the raw material had been “top-dug,” and between that and the retailer, the manufacturer had had an unprecedentedly hard struggle to live. The position at the moment was that should 64’s tops be about 4s there would, be a probability of good sound business, but at anything over that level business was difficult and trade stagnated. On the continent the position was different and better prices could be paid. But circumstances there appeared to be dependent on the continued prosperity of Germany and ability to finance the large increase of business. In Wanganui Stores

Returning to the supply of the raw product locally, it may be mentioned that wool so far brought into store is of excellent quality and particularly well grown. At the present moment there are about 2,000 bales in store in Wanganui, and providing the weather holds there should be a record offering for the first Wanganui sale on November 22. With the shortage in the raw material, it is expected that the buyers will operate on clastic limits and that prices will be in advance of those ruling at the close of last season’s sales.