LOW VALUES FOR HIDES

Wanganui Chronicle, Volume 80, Issue 122, 26 May 1938, Page 4

LOW VALUES FOR HIDES

BACK TO 1933 LEV ELS 1 BROADER INQUIRY EXPECTEF. '( The unsettled condition of international politics still exercises a strong influence over the hide market, according to the latest report of W. Weddel and Company, Limited, London, but there is an underlying tendency toward firmness in view of the improved situation in the United States and on lhe Continent. Prior to Easter it was considered that there was likely to be a much broader inquiry lor hides. “Tanners themselves are quite prepared to buy the material at prevailing rates, but have been persuaded into abstaining owing to the very unsettled situation everywhere," the re- ’ port states. “Now, however, confi- ■ dence appears to be slowly returning. 1 The leather market itself will doubt--1 less benefit by this change and in turn the hide market will become more active. “It is still very difficult to see ahead, and frankly no one can put forward any sound judgment as to the trend in prices over the next few weeks. The concensus of opinion indicates a lift in values for the late summer or early autumn. Probably the second half of the year will produce a very much better market than • for the early part of 1938. “Hide prices to-day are, in fact, almost back to where they were in 1933. This means that in the last 12 months the slump has resulted in a decline of between 30 and 40 per cent, on all descriptions, and current values, therefore, are very low indeed. It is not at all likely that the hide market will decline to the absurdly low basis of 1932. In fact, during that period prices only touched I the extremely low values for a very [short time. i “One thing to-day is certain, namely, that no large stocks of hides [exist at any of the main origins. [Neither do the tanners in any country in the .world have any stock of raw material in their yards, so that when leather is really wanted unsold supplies of raw hides may be found quite inadequate for the immediate needs of consumers. This is the point which will undoubtedly cause a very quick uplift in hide prices al! the world over.”