THE WOOL TRADE

Wanganui Chronicle, Volume 79, Issue 169, 22 July 1935, Page 11

THE WOOL TRADE

LOWER RETURNS FOR 1934-35 LARGER CARRY-OVER In their review of the 1934-35 wool season in New Zealand, Dalgety and Co., Ltd., state that “the present un satisfactory prices must be attributed, in major part, to national restrictive trade policies, together wih embargoes on wool impoi'ts, the outstanding ex ample being the embargo imposed by Germany. Future prospects for im proved trading are a little more encour aging, and although prices for cross breds are below cost of production, in dieat ions Hr a slight increase in prices 'luring the coming season are notice able. “It is fully recognised that the Do minion wool trade can be restored to prosperity only through improvement in economic and financial conditions ovei

seas. Cost of production has been cut to the lowest, and by no stretch o? imagination could further economics be practised which would bring cost down sufficiently to allow wool to be profitably produced at the present, low level of price. Unfortunately this year many growers refused to meet the market, with the result that a fairly heavy carry-over has to be recorded, 164,411 bales as against 61,496 bales at .June 30, 1934, viz., 93,148 bales in brokers’ stores and 71,263 in growers’ sheds. “During the selling year German competition, owing to trade restrictions, was sadly missed, especially in -t-hc North Island, for the fine shabby wools which are eminently suitable for the German trade. Recently two German representatives, who are interested in the wool manufacturing trade, have been in the Dominion endeavouring to make arrangements for next year’s business. Their aim was for a. barter agreement to be consolidated, but it is very doubtful indeed if our Government will move in that matter. “Speculative buying has been noticeable all through the selling year, especially at the early round of sales. Much of this wool is still held in the Dominion, and whether it will bo shipped for sale in London or marketed locally during 1935-36 depends entirely on how prices rule. Although low prices have been the order of the day, it is somewhat remarkable how steady they have been, the fluctuation from sale to sale being small, as shown by undermentioned figures:— Average Average

It is remarked that in the April sale there was a much larger proportion of oxersized packs than at, any other auction, which to some extent explains the higher average per bale. I he quality of wool sold in New Zealand during the la-st two seasons com pares as follows:

Shipments overseas on account of growers last season were: Greasy, 73,647 bales; scoured, 14,241 bales; siipe, 788 bales; a total of 88,676 bales. Large Increase in Carry-over. The bold over of greasy wool at the end of last month is estimated as follows:—Held in brokers’ stores, 93,148 bales; held by growers, 71,263 bales, a total of .164,411 bales, compared with 61,496 bales at the end of June, 1934. Scoured and slipc wool held over at the end of last month was estimated al 22,268 bales, making with the greasy wool a total carry-over from the 1934 35 season of 186,679 bales. The production for last season is given as follows:—Greasy wool, 613,756 bales; siipe, 88,800 bales; a total of 702,556 bales. r following table gives a com pa ri son of the results of the Dominion sales for the last two stasons:—

The distribution of the wool sold in New Zealand during the 1934-35 sea •son is shown in the following table: - Bales. United Kingdom 203 753 Japan, China, and India ... 29,500 Franco 84.221 Germany and Austria 28,561 Belgium and Holland 19,33,". U.S.A, and Canada 20.425 Italy ami Switzerland .. 9,366 Russia, Norway and Sweden . 7,300 Poland and (Czechoslovakia .. 4.216 Spain and Denmark 2000 Local manufacturers 27 638 Local scourers 32 484 Au-Da in and Tasmania .. .. 11,000 179.797

per lb. per bale (] December (1934; . 5.983 8 17 9 January (1935) . 6.355 9 14 I February . (5.188 9 2 9 March . 5.717 8 11 2 April 6.557 10 0 10

1933-34 1934-35 Bales. Bales. ( i reasy . .. 618,203 478,253 Scoured .... . . . .1,233 208 Slipo . .. 1,252 7,336 Total .. . . .. 650,638 479,797

1933-34. 1934 35. Bales sold . .. 650,688 479,797 Net weight lbs. 226,590,295 Weight per bale, 164,618,251 J], 348 343 Gioss value .. 110,451,565 £4,486,480 Avg. per bale £16/1/3 £9/7/Avg. per ll>. 11.7d. 6.54d. The following table shows the bales sold and the average prices realised in the North ahd South Islands, respectively:— Av. Avg. Wght per per per Bales bale lb. bale Island. sold. £ s. d d. Il> Xorlh .. 26:1,783 8 14 3 5.84 358 Scutih .. 216,014 10 2 8 7.49 325 N.Z. . . 479,797 9 7 0 6.54 343