WAR AND WOOL PRICES

Dominion, Volume 8, Issue 2276, 9 October 1914, Page 6

WAR AND WOOL PRICES

(By Telegraph—Special Correspondent.) Palmerston North, October 8. Commenting on the rise in wool prices, a merchant says he thinks the rise will remain throughout the whole period of the war in respect of crossbreds, but after the war a slight fall may occur for some time, till normal trade is reistored. Now that the fighting is being ipushed back to tho French and Belgian borders, it : is to bo expected .that the woollen industries in, those countries will be soon resumed, and this will further help to maintain good prices. It had been estimated that the Id. per pound risomcant an extra million sterling to the Dominion's wool crop. Last year Germany bought 25 per cent, of the'wool in the Australasian markets, tho total bales offered being 1,968,000. This means that Australian fine- wool will suffer this year owing to the lack of market operations on the Continent. "The only question which is likely to affect the sales very materially," no said, "is finance, but, thanks to tho arrangements made by the British Government, it is possible that this factor will bo eliminated." Another gentleman connected with agricultural pursuits is less oxtremo in his optimism. "No doubt," he stated, "there is shortage of supplies suitable for army clothing, but when New Zealand comes on the market thore will bo a large amount, and prices ruling at the next sales would be perhaps a little lower. The wool sold at Wednesday's sales was principally freezing companies' wools, and thore was not a great deal ofi station clips, which had been mostly sold before now. The New Zealand clips come on to tho market about January and February." He would not 'bo surprised, he added, if prices came back then. The fall in merinos was expected. It is taken mostly for tho Continent, Germany especially buying largely, and tho absence of tho Continental buyer no doubt caused tho decline. "Australian wools are going to suffer," he concluded, "as they are fine." New Zealand's prospect for food stuffs and wool will be exceptionally eood.