THE WOOL MARKET

Evening Post, Volume CXXII, Issue 36, 11 August 1936, Page 12

THE WOOL MARKET

ITS COMING TEST

REDUCED CARRY-OVER

"Evening Post," August It,

Australia will begin its new wooltelling season in Sydney.on.August 31. Before that date New Zealand will have held its series of winter wool sales—consisting mainly of crutchings —beginning'at Auckland on Friday bext, followed by Wellington on Tuesday. But the regular series of sales will not begin until November 28 next opening at Auckland, followed, by Napier on December 4 and Wellington on December 9 next.

But the first information of the condition of the market for fleece wools Will come from Sydney, for although some fleece wools will be submitted at the New Zealand winter sales, as has been said, the catalogues for these ■will almost entirely consist of crutchings. .

Henry Dawson, Sons, and Co., Ltd., Bradford and London, in referring to the July sales in London, remarked on two adverse,, factors: the withdrawal of the Japanese from the Australian market, and the' buyers' market (at that time) for Bradford tops. Then there was to'Be taken into account the far from negligible; factor of wooV .substitutes.upon which, botli Jtaljr and Germany were concentrating! Messrs. Dawson's, however, lay. Stress on the'hampering of ; free business in the wool, as in other markets, by "the difficulties of credits and exchanges. Bilateral arrangements under ■the barter system are still .necessary, as they provide a fair proportion of the available business." HOME TRADE GOOD. The firm reports that home pros- ' pects are fairly good. "Unemployment | is lower, than: for six years'past, and wool consumption is well maintained. . Bradford has, howevei", settled it- j self by strong effort to the desire for the half-crown top, which is always^ looked'upon as being a safe. and .} serviceable basis, both for producer: and consumer; although the grower • mayobject to,a"10 per cent, reduction from last: season's level.

"It is'probable that at the moment, there is the usual temporary- and sea-sonal-accumulation of necessary requirements in consuming centres, but there is no ■ surplus -of old stocks remaining in the producing countries. "The most solid ■ appreciation in demand during- recent months has been felt in. the grades needed by the woollen trade, which has .enjoyed a good season. Pulled wools and cheap merino scoureds have consequently been in request. Slipes in particular were driven up abnormally, in the early months of the year, owing ' to American competition, but have since reacted in a downward direction. The decline in noils has adversely affected all short carbonising lambs, pieces, and bellies. The woollen section, above all others, depends on cheap raw material for its prosperity, and the readjustment of values should ensure a continued consumption by the woollen mills." ."■ • A SMALL CARRir-OVER. .'""**' When Australia resumes selling at v the end of this month the trade will not be hampered by any considerable quantity of wool carried over from the 1935-36 season. That season was a good one in. a financial senses for 2,791.931 bales were sold, producing £49,100;537 gross, proceeds, in contrast with the returns for 1934-35, when 2,992,267 bales produced £37,927,409. The balance of wool in. store in Australia at June 30 last was 75,343 bales, compared with 85,865 bales as at the , corresponding date of 1935:. : .

New Zealand (according to Dalgety; and Co.) had a carry-over of 168,000 bales at the; end of the 1934-35 season, but lor the "wool: year ended June 30, 1938, the estimated quantity of greasy wool held back was under 30,000 bales, the returns being as'follows:— _ . , . ' ; Bales. In brokers stores .;.■.. 19 049 In clients' sheds ■.../.. 10,481 29^530 Scoured, and slipe wool in stores, on the farm, and at freezing works was estimated at 19,870 bales, making a total carry-over of 49,400 bales. Some of-this wool may have since been'expol^ ,S, r d"ring month; of June last 27,198 bales were shipped. The exports of wool from. New< Zealand for the 12 months ended June 30 are given by the Government , Statist tician as follows:— ■ ' : " 12 ™%- Wool, bales.. , Vaiue•£'■'■-■• "36 .......... oisAn ■.i2,rsi;m'-:■ , "35 582,783- 'e,iil,inK\ w£e^ ue-.£ f s? eePskins [exported; with and without wool, for the year were as follows:— > 12 mos Woolled skins. Without wool.-, 1938 „ 432,nc 3,093,316*--WHAT WILt JAPAN DO? r The withdrawal of Japanese wool Buyers from the Australian market as a protest against the revised Commonwealth Customs tariff in so far as it adversely affected Australian imports irom Japan, was naturally viewed with grave concern by the pastoralist.' Mr. K. M. Niall, chairman of Goldsbrough, Mort and Co., referred to this matter in. his recent speech, remarking mat the wool trade fully appreciated the support which Japan had afforded the Australian wool market. But he, hoped that before very long a trade agreement would be reached by the Governments of the two countries. He emphasised the fact that "the British' market is of paramount importance to1 the Australian export trade as a whole and we hope that Japan will recognise that her own policy and that of this country (Australia) . as- it applies • to1 the British Commonwealth of Nations ore basically the same." . Japan has no • knowh grievance against New Zealand, and her buyers give valuable support to the sales held in this Dominion.