AUSTRALIAN OUTLOOK

Dominion, Volume 28, Issue 86, 5 January 1935, Page 14

AUSTRALIAN OUTLOOK

Choicest Wools Cheapest

Winchcombe, Carson, Ltd., Sydney, reports :—The well-distributed competition which characterised the closing wool sales of 1934 supplies good reason to anticipate a ready demand at opening auctions of 1935. Indications dp not point to rising values such as were experienced 12 months ago; when January catalogues in Sydney averaged 20}d. per lb., but the fears have been dispelled that demand would not be sufficient to absorb the supplies available. The experience of cheaper goods stimulating sales is again being seen. Of late business has shown signs of expansion on the Continent. In Germany the mills have continued to be well occupied. Trade in that country has been better than in 1933, retail business generally in the June-September quarter being 12 per cent, higher than 12 months before. Australia has experienced a much curtailed volume of orders for the sheep’s staple from that quarter, but German consumers have not been doing without supplies. The total imports of wool, tops, yarns, etc., from January to September last were only 2 per cent, less than in 1933. As a matter of fact, German* stocks of tops increased slightly during October. Circumstances have compelled Germany to search the world for requirements, and to procure them in quarters where compensating business in goodscan be obtained. South Africa, the Argentine, and European countries have found means of selling her raw material. Even France has sent her bulky quantities, selling her, among other lots, 10.000 bales of old stock South American wool by means of a barter arrangement. The absence of usual purchasing for Germany in Australia was largely responsible for the fear that the Commonwealth might not be able to dispose of this season’s clip within the season. If she buys in other quarters she is reducing the supplies available in those directions for other consumers and compelling them to seek raw material elsewhere. It is satisfactory to know that, despite the production of “wollstra,” Germany wants wool. Iler consumption is still a factor in the world position’ though it is a diminished direct influence at Australian auctions. The Commonwealth is losing, however, because German millmen are transferring portion of their consumption to other types, and the classes of wool Australia grows are consequently not commanding normally widespread competition. One of the most unusual features of this season's sales has been the lack of normal demand for superfine, speciality merino fleece wools. Most wools are dearer tb-daj’ thihi during the depression years from 1930-31 to 1932-33. The highest price secured for merino fleece in Sydney this season is 20(1., and some excellent lines have been offered. The highest class more or less luxury trade for which speciality lines are bought is not prosperous. Interest rales are low and the incomes derived from investments by (lie wealthy are much diminished. That is one contributing factor to the unusual position. Sooner or later the situation in that respect will alter, but meantime if is a most exceptional phase that the really choicest most attractive fleece for which this country is renowned should be relatively so ehean. 'The Sydney sales reopen on January 7. Between that date and April 11, 493.500 bales arc to bo offered on the market, which will bring the season's offerings to that time to approximately 1,000,000 bales. Melbourne Produce Markets By Telegraph.—Press Assn.—Copyright Melbourne, January 4. Wheat, new 2/8} tier bushel, old 2/7:]. Flour. £7/2/6 per (on. Bran. £l/15/-. Pollard, £5. Oats, 1/71 Io 2/-per bushel. Barley, English, 3/1 to 3/2. Maize, 3/7. Potatoes. £l2 tq £l3; anions, Glebes, £7 to £7/10/,