THE OUTLOOK FOR WOOL.

Dominion, Volume 2, Issue 560, 15 July 1909, Page 4

THE OUTLOOK FOR WOOL.

: . The July number • of Daltjeiy's ; Review contains the firm's annual analysis of the :wool, markets for the year, and.' in addition to a' mass of interesting and valuable statistical''and, other information deals, as usual,, with the outlook for the coming season's clip. Wool-growers will learn with, satisfaction that .it is considered, that on the whole tho; /factors in favour of, a maintenance of satisfactory prices outweigh possible adverse influences. The ; ' Australasian export of wool during the past year showed an unexpected increase of nearly seventy-nine million pounds' weight/ partly.due to the carry-over from the previous year and ithc earlier dispatch of litany Queensland clips during the present winter. Tho values which commenced at about UO per .cent..below the opening of the previous year's prices advanced in most gratifying fashion until about 25; per cent, of the decline mentioned has been recovered. 'So .much for .the past. What of the future? Will present values be: maintained 1. Messrs. , Daloety and Co. can at least be said to be hopeful. "With good supplies ahead,"' they' 1 state,: "the general run of merino wools may slip back a little, yet, looking back over a series of "years," the 'outlook is distinctly encouraging," Prices,;' they consider,

Seem fairly safe from any violent fiuctuations for some time yet, though tho domaud for light-mako goods may ho affected by tho cold weather. With crossbroda cheapor than morinos and standing at tho ayorago price of tho past sixteen years, and a decline in tho Argontino clip probable, tho position of tho coarse grades of crossbrods may bo regarded as a solid ono. Summing up, tho opinion is expressed that Vcontinuanco of high prices during tho coming season will depend largoly upon how supplies are handled on this side. Any delay in the offoring of heavy supplies such as might occur through a wot spring or other caußca. would greatly help tho position; but what producers and milling brokers '.should aim at is to control the offerings in such a manner as to prevent tho possibility of any Burfcit in supplies. The factors in favour-of a continuarico of high prices for wool during the coming year are stated as follow: i .-..,-

1. Modornto stocks in manufacturers' hands. 2. Abundance and cheapness of ■' monoy [abroad], and likelihood of a continuanco of such conditions for somo time. 3. Natural■', general oxpansiori of tho world's trado after a period of depression and

economy. 4. Tho knowledgo that TJ.S.A. wants more wool,'and is not unwilling to pay high prices for it. 5. Peaceful industrial and international outlook, yet largo circulation of money on account, of ■groat expenditure on arma-

ments; ■ ( .', ■',' ' 6. Growth of the desire all' over' tho world, including Japan, China, and India, for woqllon garments in proferoiico to cotton or shoddy; and • T.'Tho firmness of.tho terminal markets.

On the other hand, the forces 'which may militate against a continuance of tho present rates are: '\.

1. Present values for-merinos are well above the average of recent years. 2.. Prospective slight increase in production ;' ■ of r merino wool from the chief oxportiug

. countries. '; /■. . .'.-.; 3. Dear foodstuffs; and 4. Possible resort to adulterants, 'on account of the relatively;high prices for ■ '.', ;raw wool. ■■;• ■■•-■'■ ]:■;• . ■.-. • We recently expressed the opinion -■ that thoro was a '.' possibility that .merinos would drop slightly in valup, but that croßsbreds would quite!'hold their.-own'j and that an adjustment of the balance between these classes would have a good effect, : : -Messes. ; ;Dalgety, who,; we believe,: handle more wool than any other firm in Australasia, it will bo. noted, ap- 1 pear to.hold;the same opinion as to the possibilities,, ahead of,merino, and; crossbred woolb,during the coming season. "Wc would commend to all interested iri: the wool. industry the very' exhaustive'' arid admirable review which firm has presented on the present occasion. ;-;.