WOOL SALES

Evening Post, Volume CXVII, Issue 144, 20 June 1934, Page 12

WOOL SALES

AUSTRALIAN CANCELLATION

(From "The Post's" Representative.) SYDNEY, June : 14. . . The cancellation of all wool sales that were to be held in Australia during the present month has not caused any concern. This action has been taken, it is explained, "in the best interests of the industry," and generally the decision is accepted in that light. Wool growers in Australia have always opposed any interference with the normal marketing of ■wool, but it is felt that the crisis that arose with the imposition of the German embargo on the importation of wool was such that some special action was necessary.

It is claimed that already there is proof of the wisdom of cancelling the sales, for the Bradford market, as veil as the Continental markets, has displayed a stiffening which is most satisfactory. At the same time it is recognised that it is too early to rejoice, for the German embargo is still pressing heavily on the market. However, there has been an improved tone in Melbourne, as there has been a private inquiry at increased prices for many of the lots that were passed in at a recent sale.

For some weeks past the opinion of the trade has. been that prices had fallen further than was justified by the circumstances; nevertheless, the ' uncertainty of the outlook affected every section of the trade, and no one was willing to make further commitments in raw wool until the position was clarified. ' In the meantime, the fall in-prices compelled many weak holders to unload, and that again accentuated the difficulties of the situation. Experts point out that if .the present hardening tendency has the effect of stopping any more forced, sales of tops and yarns in manufacturing centres much will have been accomplished, for the presence of shakily-held stocks always has a demoralising effect. . '

It is felt in Australia that a further extension of the German embargo beyond June 30 is inevitable, and, moreover, that the extension will be a: matter of weeks, because of the parlous state of the German finances. While the embargo exists in its present almost watertight form it is not'reasonable to expect any. considerable improvement in prices. It is probable that.any "stiffening of-the situation has been due entirely^to the removal of the bugbear of \June sales, in Australia, especially those hi Brisbane, where* a huge offering is waiting. The:' last sales in Melbourne were almost lifeless, but it was fortunate that the market should have been tested by this'scratch offering. The wool outlook-is not'promising, but it is too soon yet for gloom. Tlie developments will "be watched with the greatest anxiety by all Australians.

ARGENTINE WOOL EXPORTS.

Exports of wool from Argentina during March. amounted to • 36,948 bales. From October 13933,,t0 April the total exports auiounted'io 21^&|2 bales, as compared with 217,792 shipped^uring tHef^corresponding period last season; au yjnsignificaut decrease- of> lßsoj-b"ales. ,vj\ :•