THE WOOL MARKET

Dominion, Volume 32, Issue 154, 25 March 1939, Page 4 (Supplement)

THE WOOL MARKET

London Prices Higher

UNREMUNERATIVE RETURNS Averaged over this season’s series of wool auctions. Loudon selling appears to have handsomely exceeded returns achieved at New Zealand sales. This was also so last season. From that, it is not to be inferred that this is always so; it has been declared that, on average, the two come out about equal. Seasons can be recalled when New Zealand selling gave the better net return. And it is that which counts. The actual relationship of London to New Zealand sales prices is somewhat complicated in detail; additionally so, because of the exchange factor. Simply stated, it works out this way. To achieve the same net return, as at shearing shed, in each instance, a 0.78 d. lb. higher figure must 'be reached at a New Zealand sale than in London. Selling at lOd. London is ns good ns selling at 10.78 d. lb. New Zealand sale. ■ Since New Year New Zealand wool hns sold in London for average crossbred at Old. To equal that lOjd. is needed here.” Sales have returned Sd. short of that figure. A rough progress average of this season’s Dominion sales shows wool as down a full id. on last season and averaging onlv 9}d. That is a mighty poor price. Wool today is probably suffering more than any other of our major products from the “international jitters.” However, if woolgrowers are feeling the pinch, so. too,, are their factory competitors. The great British artificial silk firm of Courtolds report this year’s profit at £352,000. That is but one-sixth or less of the £2,374,000 earned the year before a profits decline of 84 per cent. This will give little or no encouragement to artificial wool investment in other than totalitarian States. As to the future course of wool, Antwerp futures and Bradford tops show no indications of change. The great de? termining factor is international politics. It appears improbable that wool will go lower; therefore there is some chance that it may go a little higher.