WOOL MARKET.

Press, Volume LXVI, Issue 20092, 22 November 1930, Page 10

WOOL MARKET.

THE AMERICAN POSITION.

OUTLOOK; BETTER. The '' National Woolgrower." an American, -publication 'devoted to th« wool and lamb industry makes, some rather encouraging 'observations in it 3 October issue:—

September has passed into history. While the month lma not brought all the improvements hoped for, neither ha.3 it brought anytliingof retrogression If there has not been realised all the gains so confidently forecast by the more optimistic a month ago, certainly no ground has been lost. There has been no recession in wool values. All the previous weak places in the market have been strengthened, while previous strength lias been confirmed and consolidated. The outlook is distinctly better at the end of the month than ac its beginning. There is a feeling in local wool circles that priccß cannot fail to show some.improvement as tho needs of the mill develop.

If there are any connected with the wool textile industry, who are looking 1 for it big boom in wool, now or later, they are likely to be disappointed. Such an "attitude does more credit to thoir optimism than to their judgment. Conditions in the wool trade have radically changed in recent years. It is no longer possible to forecast with any degree of confidence a return of the market a,» tivities recorded a decade ago. It has been pointed 'out lieforc that it is no longer a trade practice for large consumers of wool to accumulate practically a season's supply of wool and then go to the goods trade with such control of the market as to be able to dictate prices and styles. Now the opposite is the fact,. Manufacturers get what orders they can and then cover thoir needs by purchases of wool daily or weekly. This practice has been well illustrated during the past month. There have been spurts in the buying of wool, followed by corresponding lulls, showing that, buyers were keeping very closely to mill needs. All the time it has. appeared as though the supply of wool at the friills is very close to the machines. It is not, of course, possible to run quite so close to the wind as the above simple statement might be supposed to indicate. Successful manufacturing processes require that a certain amount of wool must be going through the mills all tho time. That is what is now happening. Increasing Inquiry. In one way there has been a decided improvement since last month's report. The light-weight season for fancy worsteds for men's wear is now fully open, and buying of goods ought to be soon in full swing. No attempt is made to conceal the fact that the heavyweight season was n great disappointment. Buyers held off until the last moment and refused to placo their orders in a seasonal way. Quite recently they have been coming into the market looking for the needed supplies, and to their surprise have found it impossible to get the desired deliveries. Those who expect to find the market stocked with goods awaiting their order have been forced to wait until the goods can be made. . Often tfcey have been forced to accept thirty days' delay rather than the prompt delivery they had in mind.

The market for worsted wools has been quite firm, of late, but not at any time strong enough to suggest to buyers the necessity for forward covering on a large s.;ale. Thu« far they have found on salo all (he wools needed. Both cooperatives and/ independents have been free sillers. Tho co-operatives are - meeting the market, and are reported to be selling largo weights of wool. There has also been a big movement of sample bags with the possibility of a larger movement in the near future. In every way the market may be said to be promising, with this reservation: —Large buyers who ought to take 100,000 to .'iOO.OOO pounds at a time are more disposed to take 10,000 to 20,000 pounds. The result of this is seen in the week's totals. The activity in tops has evidently become a permanent feature in tho wool market. Tho popularity of short,'fine tops has been quite pronounced, not only during the past month, but also throughout the year. Dealers liave welcomed this development as an aid in disposing of large weights of wools of the French combing type and also ofi overage character. Summer Street houses found that the activities of topmakers have been depended upon to keep sales of suitable wools on a seasonable basis. Yet topmakers ■ have not had tho market to themselves. Mill buyers' have also been active, not always to the extent desired, but sufficient to show their interest and to indicate that all buyers aro, keeping close watch of the situation in the wool houses. Moderate Advances Predicted. There is no further talk of the possibility of lower prices for domestic wool. All experts agree that the market is in a very firm position and due for a rise,if any change in the position of raw. wool is noted in futuro trading. Compared with a month ago it is difficult to see where there has been any perceptible change in wool values in thismarket.

The opening of'the Australian season and the opening of the fifth series of the year of the London wool sales have been the principal foreign events attracting attention in this market. Though the openings in both London and the Colonics were somewhat disappointing, owing .to the. Jaclt of clear-cut strength in those markets, they were regarded here as on the whole encouraging, giving promise that there' is, to bo no ruinous, competition from that source during coming months. Thus far Americans have bought very little, as suitable wools have been generally lackipg in the Australian offerings, and prices in London have' been too high.: The whole domestic wool situation is. regarded as sound and healthy, with moderate advances in values predicted in the near future.