WOOL POSITION

Evening Post, Volume CXVII, Issue 72, 26 March 1934, Page 12

WOOL POSITION

A YORKSHIRE REVIEW

THE HOLD-OVER PROBLEM

Dnlted Press Association—By Electric Telegraph— Copyright. (Received March 26, 10 a.m.) LONDON, March 25. The "Yorkshire Post's" Bradford correspondent, in commenting on the recent London wool sales closing at the highest point, expresses the opinion that values are sufficiently strong to provide a tonic to the consuming centres for weeks with Continental support. It seems that the lowest point of the readjustment prices has been seen. Present- contracts suggest that when manufacturers recover from the present seasonal lull there will be a resumption of last year's healthy consumption. The writer adds that in view of New, Zealand's hold-over of 41,000 bales in London and Australia's 11,000 bales, some brokers are wondering, whence wiH' come the greasy merinos for" the next sales. . The Bank of New South Wales is in receipt of the' following cable message from its London office, dated March 23:— "Wool prices steady and firm at closing rates; "fair, inquiry." , Winchcombe, Carson, Ltd., Sydney, report:—ln the present-day world, with its recurrence of political and financial pro.blems, its discussions regarding tariffs, import quotas, and currency difficulties, the person who expresses a definite opinion regarding the future value of wool and other commodities is liable to prove astray in his reckoning. The statistical position of the sheep's staple is so sound, however, that a • serious upset abroad would be necessary to have decided effect on the market. ,- The woolgrbwer 19 in a rather remarkable position^ Tariffs and the depreciation of currencies have upset the course of trade from various countries. Japan, by way of example, has invaded India with Woollen products, cutting into other nations' exports to that quarter, and seriously curtailing the output of the Indian mills. India took 6585 bales of wool from Australia last season,- but considerably less this year. -But the wool must -be bought, whoever may supply the goods, and Japanese demand has certainly been brisk at this season's sales. Relatively few growers will have any appreciable quantity of wool-sold during the ensuing five months. The sheepskin market, however, depends upon wool values, and most owners will have some skins for sale. In Sydney, three-quarter to full wool merino skins were ■ only realising fid ,to-.7%d a year ago, compared with 13d to 15d recently. In that respect, and also in- the sale of sheep and lambs, the stoekowner is decidedly well placed compared with this period of 1933.