AUSTRALIAN CLIP

Press, Volume LXXI, Issue 21415, 6 March 1935, Page 6

AUSTRALIAN CLIP

EFFECT OF DROUGHT Winchombe Carson Ltd., the Sydney woo firm, reports: Stocks of wool on hand In Australian stores have been reduced considerably during he pas two months, and only relatively small supplies will reach the warehouses between the present time and next Aueust Queensland stores receive thelargest quantity between January and July! but receipts in the State wll be affected by the drought prevailing in the central west, west, north-west, ,' d to a great extent the south-west. Drv times are compelling many Queensland land-holders to shear their «heep with only eight to nine months growth of wool. The amount of deeply-o-rown staple which Yorkshire requires will consequently be less than usual". In Sydney, after Easter, the wools available will principally comprise very late shorn clips and autumn shorn lines from the more distant plain areas The wool purchaser who considers that almost unlimited opportunity is available to secure well grown raw material in Australia is liable to Cnd his ideas awry. In April-May only limited offerings will be available in Victoria and South Australia. So far this season Germany, Italy, and Poland have bought much less wool in Australia than during the preceding selling year. Germany certainly managed to obtain good weights of the staple in other countries, but she has not secm-ed normal needs in either quantity or quality. Italy and Poland have also imported in smaller bulk. Though finance is a hindrance in Germany and Italy, and mill turnover in Poland has not been as large as usual, those countries must sooner or later' make greater efforts to retain their hold on the world's trade in textiles and can only do so by purchasing wool in heavier quantities. As far as the purchase of wool is concerned, recent variations in exchange ' rates between Continental countries on the gold standard and Great Britain should assist those quarters to make purchases. During the bulk of the first half of the season the French franc was quoted at 75 to 7G to the English £. Latterly the quotation has been between 73 and 74 francs, enabling more wool to be bought with a similar amount of French money than was the case in 1034. In February, 12 months ago, the franc was quoted at 77 to 7!) to the £. The movement in exchange tends to diminish the sale of French goods to foreign customers, but it provides millmen with a favourable opportunity to stock up with raw materia). At present any decided change in wool values does not look probable. The indications for as large a clip in Australia next season as this season are not promising. Droughty times are causing stock losses in Queensland; the 1934 lambing in New South Wales was below normal, and pastures in a number of districts are scanty and generally less bountiful than for some years. Reduced supplies of the staple in the more distant future may in- ' fluencc prices upwards. ! INCREASED PRICKS I NLIKELY I Mr J. M. Niall, ch.-.irman of directors of Goldsbrough, Mort and Company, who returned to Melbourne the other day after a business visit to London, says Australian producers will be well advised to sell wool on tiie present market instead of waiting in the hope of an increase. lie found no indication that prices will improve. There was, he said, a constantly fluctuating demand in England for Australian wool, but his observations gave no reason to believe there would be any material or permanent increase in prices. Mr Niall added that while abroad he had an opportunity to examine artificial wool which was recently placed on the English market. Although there was a little demand for the artificial product, it constituted no real rival to the genuine wool. Temporarily it was influencing the sale of wool, but in the long run its effect on the market would not be great.