WOOL MARKET

Dominion, Volume 15, Issue 2, 27 September 1921, Page 5

WOOL MARKET

MR. MASSEY INTERVIEWED / — “LOW PRICES WILL NOT CONTINUE” The Primo Ministers (Mr. I Massey), after a few days’ visit to Bradford for tho purpose of inquiring into the position of the wool trade as it affects New Zealand, informed a London "Morning Post" representative in August last that ho had been afforded by tho leading firms' the fullest possible opportunities of learning the truth about the trade, not only as to its present conditions but also as regards its future prospects. Speaking generally, Mr. Massey found the position more hopeful than ho had been led to anticipate. 1 Low Prices Only Temporary. "The impression received was that the present low prices of wool would not continue much longer," hejsaid. “Much of tho present temporary trouble arises from the fact that the Imperial Government are holding a large accumulation of wool. Tho stocks remaining over from the purchases of New Zealand .wool are alone equal to one season’s clip in that Dominion. That, fact alono creates a feeling pf insecurity, because there is always tho possibility that the British authorities holding those stocks might bj tempted to do what is called 'cutting the loss’ bv putting three stocks on tho market On tho other hand, private stocks are . low, and there are no heavy holdings in warehouses in Bradford—in fact T heard in several directions that speculators are already beginning to operate in anticipation of a possible rise in price. Three Important Factors. "There are other factors which may tend to strengthen the position from tho producers’ point of view. The first of these is that the number of sheep in the world to-day is very much lower than it was at tho time of the outbreak of wnr. In the second place, I am _ informed that according to reports received in London from South America the sheep farmers there are reducing their holdings of sheep, and stocking up with cattle, for tho re,iron that in the Argentine beef is just n|w ft more profitable export than mutton. In the third place; i the cotton crop is said to be not very good, and a shortage in that direction should' bo made up by an increased demand for wool. "Add to these factors tho further consideration that some of tho most populous Continental countries are suffering from a shortage of clothing supplies, which must be replenished sooner or 'later by: the utilisation of the Particular grades of wool which New Zealand supplies, and you may make out a. trood case for the optimistic view which: I have reason to believe is now held among Bradford authorities on this subject.” Continental Markets. Mr. Massey admitted that against all Hlose encouraging anticipations there remained 1 the hard fact that there was in file hands of tho British authorities a vast accumulation of' wool remaining over from their war purchases, and much care and provision would have to bo .used in placing those stocks on the market. TTo, however, hoped for great relief from the reopening of Continental markets, which in pre-war days absorbed very large consignments of wool, par-, ticulgrly of tho crossbred variety which Now Zealand produced.