RISE EXPECTED

Wanganui Chronicle, Volume 79, Issue 99, 30 April 1935, Page 9

RISE EXPECTED

EON DON MAY WOOL SALES. The Bank of New Zealand, product department, is advised by its London office, under date April 26, that prospects for the third series of sales, commencing on May 7, are favourable for all kinds of wool. It is generally expected that Merinos will advance Id to lid per lb, halfbreds Id per lb, and orossbreds id to Jd per lb. JAPANESE DEMAND. The next London sales open on May 7. Germany is again buying wool and yarns from* Bradford, probably owing to the French embargo on wool exports diverting the demand to Britain, states a recent cablegram received in Australia. Her purchases, however, do not approach the scale of those in January and February, owing to financial limitations and restrictions on raw material, which wool trades arc P° r ' mitted to use after April 1, ranging from 50 to 20 per cent, for various sections. The general competition experienced in Sydney from Yorkshire, Japan and all Continental countries indicated a widespread demand for the raw material, which augurs well for May and June sales. Fully 85 per cent, of the wool which will be available for sale in the Commonwealth during the season has now been sold. Japanese inquiry at the auctions and for passed-in wools privately proved a notable feature. Japan is apparently not well supplied with raw i material. In J 934 her imports of wool totalling 585,484 bales were 24 per cent, less than in 1933. During the past 12 months her exports of woollen fabrics were double the quantity of a year before, reaching 20,230,006 square yards. Her shipments to India were over four times the value of the consignments she sent to that country in 1933. She also shipped larger supplies to Manchukuo, Korea. Formosa, China, the Dutch East Indies, and Egypt. Her foreign trade included limited quantities of mousseline de laine, and woollens consigned to Africa, Germany, Great Britain, Sweden, Norway, North and South America, Australia, Hawaii, and New Zealand. She looks like becoming an important factor in export trade of the world as :t whole but in the East Jier possibilities are great. With her low costs of manufacture, the selling price of her goods is I more in keeping with Eastern purchas- * ing power than the products of mills lof the older world working under | higher manufacturing expenses. ' If Japan is in the future able to expand her business with China, possibilities for the sale of her woollen textiles are almost boundless, says Winchcombe. Carson, Ltd. Provided Australia encourages her with a reasonable amount of balancing trade, the Commonwealth will continue to be her chief supplier of the necessary raw wool. Currency conditions in Europe ar i to an appreciable extent responsible for the improvement in Sydney, bu; an increased consumption of Merino wool and prospects of diminished supplies, due to the dry season in Australia. have also been an important influence,