Foreign Competition Forces Wool Prices to Record Heights

Wanganui Chronicle, 25 May 1948, Page 5

Foreign Competition Forces Wool Prices to Record Heights

(Special N.Z.P.A. Correspondent? Recd. 7.10 p.m, London, May 24

Keen foreign competition for wool, in Australia and South Africa in particular, is forcing the Bradford ton market to new high levels unequalled for the past 28 years. Market prices increased by 2d per clean pound on more than one day this week.

Bradford market conditions arc excited, and although tops' cannot be sold here on a full basis of what the wool costs in the Dominions, Merino top quotations in Britain this week are 1 advanced by amounts ranging from 6d to Is per lb., according j to quality. Ten shillings per; pound is now a definite quotation j for superior Merino tops, but! several firms have withdrawn their quotations tindci what are; regarded as the present abnor-1 mal conditions. |

Everyone recognises the strength of the fine wool position, based on the continued

heavy demand for good combing ; Merinos and the rapidly diminishing supply as the season’s clips approach clearance. Nevertheless Bradford firms , experience difficulty in selling ■ intermediate products at prices j commensurate with current, wool j costs, and today business in tops

and yarns is at prices relatively : below today’s wool market and facilitated by wool formerly bought at prices less than today. ■ Spinners and are 1 consuming tops and yarns bought at previously ruling I lower prices but offer resistance Ito intermediate products based jon today’s wool costs, as they ' fear u'iffieulty in selling the manufactured goods on a com- : parable basis. I The problem of Yorkshire wool I importers is that commercially

held stocks of Merino combing wool in Britain are inadequate to occupy British wool-combing capacity until the new season wools begin to arrive, and several firms need to increase the stocks of wool they now hold. This foreshadows continued Yorkshire support for wool in the primary markets and a strong reopening of the London sales next week. Woollen trade wools and worsted by-products, such as noils, show very modest advances compared with Merino combing wools and tops. Cui rent quotations for tops, which would be higher if based strictly on replacement costs in woo], are approximately: 70’s, super. 120 d to 121 d: 70’s, average, 115 d; 64’s (A), 114 d, 64’s (81, 111(1; 60’s, super, 974 to 98(1; 60’s, average, 95d to 96d; 58’s, super, 74(1 to 75d; -58’s, average, 70d; 56’s, 59d; 50’s, 37|d; 48’s, 36Jd; 46’s, 354 d.