London Wool Prices At Highest Level

Chronicle (Levin), 11 October 1949, Page 5

London Wool Prices At Highest Level

Received Mondav 7 p.m. LONDON, Oet. 10. Wool in the Dominions and in London last week, registered oue of the biggest advances for several montlis, which restores prices to the highest point tliis year, states the Iuterngfional Woul Secretariat special news service. The chief reason is that sterling devaluation makes the Dominions ' wool cheaper to the dollar buyers and America is competing strongly in the Dominions and in London supjiorted by some European countries whose devaluation is less than tliat of sterling. Devaluation has opened the door to a wjder aggregate demand for wool and competition is keener than at any previous stage of the season. To keep" pace with Australian wool markets which have been advancing almost daily, some large Yorkshire importers have virtually witlulrawu then' buying iimits and given wide discretou to their saleroom representatives. Good Australian and South Ai'rican Meriuos have advanced not less than (id per 1b tdean in as many days — the rise being more than that in some types — and -New Zealand erossl>reds are advancing in London in iine with Australian crossbivds. London today fully eiuloivses the p rice lift in the Dominions and adds the usual ?i)ot market premium to cur rent Dominion prices. Sterling iniport ers are not enamoured of eurrent price.luit realise that wool remains cheap in tenns oi' doilars and that it is still ne cessarv for Yorkshire to buv to corre«" the liglitly stocked position here. More over, Britain 's rate of wTool consump tion maintains high levels and sonn. mills are now selling their output web i intn 1950. I A fortniglit ago, at the first hint oi a wool priee lift following devaluation 'some Yorkshire topmakers and spmner.[uiade their largesf. sale of the eurrent ! year and big contracts for tops and yams were placed by home and export houses. Last week the volume of busi n. -s was smaller but large enough to sliow that the niarket is following the uplitt in wool prices. The American de mand here is not onlv in bale wool but extends also to tops, yams and by-pro iliK'ts sueh as noils while there is also a big Americgn inquirv for wool cloth. Attractive prices are available for topand varns which can be delivered quickly and cloth is being sought by U.B.A. for delivery well into next year. Some Bradford topmakers prefer not to qyote until the wool price position clarifies further but several leadin» firms ofTer Merino top seat prices aliout fid above the previous week's quota tions though quotations would be higher if liased strictly ou eurrent wool costs.