THE WOOL CLIP

Press, Volume LXXI, Issue 21412, 2 March 1935, Page 19

THE WOOL CLIP

NORTH ISLAND CARRY-OVER

From all appearances the Wellington, Wanganui, and Hawke's Bay districts are likely to hold over a lot more wool than is good for the health of the 1935-36 season, states a northern writer. It. is earlv yet to make forecasts, but the failure of the Wanganui Kale to reach the 25,000-bale limit fixed by the wool committee by some 10,000 bales, and the holding back of wool already in store, together with the dull tone of the medium to low crossbred markets, points to a fairly large holding of unsold wool before the sellingseason closes in April next. Prospects of Wellington sale on March 20 reaching the limit of 25,000 bales as fixed by the New Zealand Wool Committee are not bright at the moment. London March sales are fixed for March 12. In the meantime there are only the Australian and New Zealand sales to go upon in estimating the market, and the sales to be held in New Zealand between now and March 12 will be at Christchurch (held yesterday), Invercargill, and Dunedin, where the finer sorts of wool are submitted, and the demand at the moment runs on such wools.

AUSTRALIAN VIEW

Winchcombe, Carson, Ltd., report:— Though no cause for elation exists regarding the level of wool values, reason for satisfaction is to be found in the continued bulky sales of the staple being effected. Demand has of late been fairly widespread, despite the fact that restrictions on imports into Germany and Italy have kept purchases on behalf of those countries well below normal. France has during recent months purchased with greater freedom than for some time. Her trade over the bulk of the last 12 months has been in reduced volume, but her purchases of raw material were much curtailed in accordance with the smaller turnover The imports of wool retained for use in the French mills from January to the end of October were only 935 800 bales, being 632,000 bales less than during the corresponding period of 1933. Those figures denote drastic reduction, which must sooner or later result in depleted stocks of wool at the mills. French exports m 1934 were appreciably less than in 1933. but they did not'cease, and her mills had her own internal business to supply. The holdings of tops in France at tne close of November last were 5.000,0001b less than a vear before, that reduction showing that business was greater than lhe quantity of tops being turned out. Turnover at the French conditioning houses, which supplies a guide to

trade, shows that whilst m August fhe weight of tops treated was 40 per cent less than in the similar months of 1933 the average for the three succeeding months was only 23 per cent, below the figures a year before. Though no great burst of French buying can be anticipated, the position gives good cause for hope that demand on that account will continue to be experienced in fair strength. . The financial difficulties reported in connexion with a large Yorkshire manufacturing concern supply evidence to growers that a fall in wool values such as occurred between January and December, 1934, hits mill men as' well as sheep men. Prices for manufactures abroad decline in sympathy with receding rates for raw material, and mill owners become involved in severe monetary losses. That is why it is erroneous to believe that buyers' interests solely lie in pushing wool prices downwards. It is on rising markets that handsome profits are made, but unfortunately advancing rates or figures stained on good levels cannot be experienced unless the world's people are prosperous and are willing to buy goods freely. On the basis of rates recently ruling, wool prices are on the level of early December, the advance recorded in late December and early January having disappeared. On present indications an upward movement does not appear likely, but we certainly look to see some improvement as the year 1935 progresses. The best method of assisting to produce that desirable development is for the world's growers to meet the market, thus encouraging consumption of the staple, and preventing any accumulation of stocks, the size of which might make buyers nervous as to the future of prices.