WOOL PRICES

Press, Volume LXXXII, Issue 24911, 26 June 1946, Page 6

WOOL PRICES

DETAILED STATEMENT SOON NEGOTIATIONS WITH DISPOSAL COMPANY (P.A.) DUNEDIN, June 25. The suggestion that woolgrowers should await a detailed statement on the price which they will receive for their 1946-47 clip was made to-day by Mr W. Horrobin, a member of the wool Disposal Commission, in an Interview. Mr Horrobin was asked to comment on a statement published to-day on the plans of United Kingdom-Dominion Wool Disposals, Ltd., for the orderly disposal of the accumulated war-time surpluses of wool and the maintenance of an appropriate degree of stability of prices. Clarification was sought particularly of the Statement that “The initial general level of reserve prices for Dominion wools sold in the Dominions shall be the same as the present aver, age selling price ex store in the Dominion concerned." Mr Horrobin said he was not in a position to comment on the statement issued from London beyond saying that while in the main it Was on the general lines of the wool disposal plan, it was impossible at this stage to state with any certainty what price an individual grower would receive in the 1946-1947 season. A general statement would he released as soon as finality was reached between United Kingdom-Dominion Wool Disposals, Ltd., and its subsidiary in New Zealand. Disposal Methods The satisfaction of wool brokers with the system by which United KingdomDominion Wool Disposals, Ltd., will dispose of the war-time accumulation in conjunction with the auction of current Clips was expressed to-day by the manager of a woolbroking firm. He explained that the New Zealand branch of. the organisation would buy a portion of the accumulated surpluses of wool from the United Kingdom, and Would market it at Dominion auctions of the new season’s clip. Buyers would operate as they did before the war, and the organisation would come in to support a weak market, bidding against buyers. Where there was a strong market the organisation would offer at auction some of the wool from its stockpile, and in that way would gradually dispose of its surplus, The organisation's appraisers would value all wool to be auctioned, and would put a reserve price on the various types on offer. If bidding did not reach the reserve it would buy in the wool, and add it to its surplus for disposal at a later date. Where bidding was keen some of its surplus would go up to auction, and this would have the effect of keeping prices stable. Wool brokers valuers would also value clips, and firms would have the right, as in pre-war days, of withdrawing wool which did not reach their own reserve.