Wool Position Is Showing Unfailing Strength

Chronicle (Levin), 25 January 1949, Page 5

Wool Position Is Showing Unfailing Strength

i Received Monday, 7 p.m. LONDON, Jan. 24. Wool users in Britain are mucli impressed by a British Wool Federation leader's statement tliat the world wool supply outlook will beeouie more ditiicut as Joint Organisation stocks of Dominion wool and the American Commodily Oredit Corporation 's stocks of Anierican domestic wool, hoth dwindle to uuimportant proportions, states the lnternational Wool >Sec retnriat .s]>ecial news service. He estimates that wool production must increase bj' 27 per eept to balauce the current rate of consumption. The strength of the wool position is readilv acknowledged here but consuming iirms will not buy more than they need at current prices. Tliese prices are resulting in one of the most Iightlv stocked^ positions known for uiany vears and account for the exeeptional deniand for spot wool. Manv firms will pay a sharp premium for wool .available at short notice to augment any sliort fall in primary market purchases. The London wool saies opening next week, will be the largest for many .vears, with a total offering of 137,000 bales spread over i'our weeks. Most will be Joint Organisation avooI. Top market quotations tliis week were substantially uncluuiged birt prices of medium crossbred (jualities iyre agajnst liuyers.