A SOUND POSITION.

Waimate Daily Advertiser, Volume XXIV, 9 April 1927, Page 3

A SOUND POSITION.

THE WOOL MARKET. form OWK COKBESFOSDBNXi WELLINGTON, April 6. The wool-selling season of 1926-27 in New Zealand was practically brought to a close last week with the sale at Wellington, where nearly 21,900 bales were catalogued. The final sale showed the wool position to be extremely sound, for there was a keen demands for all classes of wool, and prices all round were appreciably higher. The first sale of the season, like the last, was held in Wellington on November 1.5. At that date the disastrous coal strike in Britain had just terminated, and the textile trades, which suffered severely from the labor trouble, did not know, or rather felt uncertain about the future. It was inevitable that buyers should act with caution, and prices at that opening

sale were very low. As a matter of fact the average price per bale was £l6 9s 9Jd, and 11.257 d per lb. -Wool was selling at under one shilling per lb. But trade conditions began to improve, and gradually the outlook widened and a feeling of optimism began to animate the trade. As everyone interested must know the December sales showed a decided advance, the average per bale rising to £l7 7s 6d. Since then the market has continued to improve, culminating in the excellent sale at Wellington on Monday. Wool, of course, has a world market, hut not all those who need wool have operated as freely as might have been expected. The Americans have not bought their pre-war quota oi the staple. The American drop on wool is very high, but that would not have prevented purchases on the part of the United States if wool could have been

absorbed. The fact is that the wool textile trade of the United States has been in a. depressed condition for a considerable time, and manufacturers could not see a way out. Apparently there has been some improvement in the trading conditions, for both in London and New Zealand the Americans have operated, although on a relatively small scale. Within the last three or four months Russia has come on the market, and although her pur-

chases are comparatively small the competition is valuable in maintaining the market. Growers in New Zealand have shown a strong disposition to accept the prices offering at the local sales, and the prices realised in the Dominion have been above London parity, allowing 2d per lb for transport and other charges and commission. This has been a strong factor in eliminating. temporarily, the speculator, who has been provided with no scope for his talent, and energies. It can be safely stated that the greater part of the season’s clip has been marketed locally, but it is impossible to say what was actually sold ii. the Dominion. Probably the wool in New Zealand approximated to about £8,000,000 and by April 12 the whole of this amount will have been returned to the rowers. The wool market is sound, strong and stable, but for all that the average price for the entire slip cannot equal much more than a shilling per lb, which looks good or, paper. The costs of production eat largely into this average, so that the grower’s reward may not be. fully satis fled--with the prices realised, at all,, events they have reasons to be pleased with the soundness of the market and with the rising tendency displayed, which is in striking contrast with the condition of the dairy produce markei which has been managed by a Board. It seems that London as a wool selling centre is no longer paramount. The sales in the centres of production have displaced London, and as a matter of fact relatively better prices are obtainable in Australia and New Zealand than in London. When prices in ths great metropolis are higher than here there is scope for the speculator, bu; that scope has been denied the latter

this season. The marketing of wool locally is obviously advantageous to the grower who thereby holds control over his clip. He can, if he chooses, fix his own reserve price, but a prudent grower would not do this without consulting his broker. In the dairy business as now conducted, the producer has no voice whatever, and must take what he can get. Some day a review of the marketing methods of our various export products must be made with a view to improvement. If butter and cheese could be sold in the same way as wool it would be a great advantage.