N.Z. MEDIUM CROSSBRED WOOL DEARER ON LONDON MARKET

Wanganui Chronicle, 1 December 1949, Page 6

N.Z. MEDIUM CROSSBRED WOOL DEARER ON LONDON MARKET

LONDON, Nov. 30 (Rec. 6 pm).—Some of the strongest spot market conditions since the war were in evidence at the London wool sales, which opened last week-end.

With all sections of the Yorkshire trade buying heavily to correct the lightly stocked position, and good support forthcoming fropi several sections of Continental buyers, prices paid in London not only confirmed the dearer levels lately established in Dominion markets, but were frequently in excess of Dominion prices for comparable sorts. Compared with the Liverpool October sale, greasy Merino topmaking wools were sevan and a-half per cent, dearer, rising to 10 per cent, for short Continental combing types, ’ while scoured Merinos were 10 per cent, dearer in good style wools and, up to 20 per cent, dearer in average styles. Greasy comebacks and fine' crossbreds were 10 per cent, dearer,; new Zealand greasy medium cross- • breds 15 to 20 per cent, dearer and scoured crossbreds and slipes were also 20 per cent. up. All New Zealand wools showed a ! clear premium over the prices paid at the Auckland sale which opened the New Zealand marketing season earlier last week, and crossbred wools anything up to 50 per cent, dearer than in July last. One reason for the exceptional demand now in evidence in the spot market is that the present stage of

the season finds trade stocks unusually low, as firms await bulk arrival:, of the new clip wool from Dominion sales, which opened some weeks ago. Added to this the fact that United Kingdom wool consumption maintains very high levels, and that the rate of consumption over the past year has not allowed many firms to build up adequate margins of stock. Another factor which places spot wool in a favourable position is that the general level of wool prices in the past year •or two has discouraged many firms from carrying stocks in excess of visible requirements, and as a matter of policy some have preferred to buy spot wool as needed rather than ! engage in long date buying programmes. , There is a wide representation of Continental buyers in the London marl; x including France, Holland, ; Belgiu Switzerland , Poland and • some of the Scandinavian contries, while orders for Germany are also held by some buying houses. Not all 1 these countries are buying at high ! pressure, but the total buying power ■ they put into the market represents ' strong support for prices. There is nothing to indicate that either the United States or Russia are in London market, though that may bo due to the fact that the general standard of the offerings is not very suitable for these countries.—Specail N.Z.P.A. Correspondent.