POOR SELLING SEASON

Wanganui Chronicle, Volume 75, Issue 118, 21 May 1932, Page 8 (Supplement)

POOR SELLING SEASON

UNPROFITABLE PRICES. “The past wool-selling season will rank as one of the leanest in wool history and one of the most difficult for wool-growers and others in the industry,” states a report issued by Dalgety and Co., Ltd. The report continues:—“Unfortunately the woollen trade is faced with economic conditions still far from normal, and although we had hopes that the long-continued subsidence in wool values had been checked there is at the moment nothing to justify any statement that a definite measure of recovery is assured. Confidence has not so far returned, and generally a hopeful view cannot be taken * for the future. We refer particularly to crossbreds. “At the moment, the outlook for crossbreds is obscure and unless something unforeseen happens it. is very doubtful if any decided appreciation can be looked for in these wools during the 1932-33 season. At the opening of the Dominion’s 1931-32 wool-selling season purchases were made at what looked like bedrock, but which ultimately resulted in severe losses, and each disappointment intensified rhe lack of confidence and forced many previously large “forward” buyers to adopt a hand-to-mouth purchasing policy. The extra heavy stocks of New Zealand greasy crossbred wool on the London market, combined with full sup- ■ plies offering locally, gave buyers the assurance that their requirements from month to month could he filled either ■in tho Dominion or in London as required. “The past four wool seasons reveal 1 a gradual descent from prosperous <?on--1 ditions to what can be classed as disas- • trous. The 1927-28 wool-selling period > was one of the most successful in history from tho w’oolproducing standpoint, the outstanding features being ’ sustained demand, accelerated realisation and high prices. In 1928-29 there 1 was a waning confidence, and considerL able trouble at the manufacturing end, ■ but wool prices were sustained and a very satisfactory wool cheque was • handled. An initial drop of 33 per 1 cent, in the 1929-30 prices had no appreciable effect in spurring demand—f rather the reverse. Prices steadily de- ’ dined and rendered wool-growing un- ’ profitable, while all attempts to stem ’ the receding tide proved unavailing. 1 A slight recovery in March. 1931. has been followed by a continual decline.”