WOOL PRICES

Evening Post, Volume CXXVII, Issue 2, 4 January 1939, Page 12

WOOL PRICES

AT LOW-WATER MARK

TRADE .FEATURES REVIEWED

(By Air Mail, from 'The Host's" London Representative.) LONDON, December 8. Discussing wool prices, "The Textile Mercury and Argus" remarks that, in looking back over the; year, two main features had been that, even when the outlook was gloomiest (during the crisis), actual changes had been slight, while, no matter what the trade conditions, there had been a definite limit below which prices could not be depressed. There seemed to have been a well-defined low water mark below which the tide of prices would not recede. Prices had fluctuated within narrow limits, the reasons being that the dangers of war and the need of re-arma-ment had meant a demand for military clothing, while owing to the attitude of Argentine growers a large part of their clip had been kept off the market. The results had been a scarcity of spot supplies in Europe, prices had been affected, and stocks of medium and low crossbred wools in the West Riding were light. This had accentuated interest in the Auckland sale. "SAFETY FIRST." Asking why there had not been greater rises when business had been brisk, the article continues: "The main answer is, no doubt, to be found in the prevailing reluctance to do anything substantial in the way of speculative buying. Safety first seems to have been the motto right through the trade, and there has never been sufficient driving force in any buying movement to lift prices to create a really sharp rise. "Round about 26_d for 64's warp, buyers have been tempted to operate to a reasonable extent. They have regarded it as a safe basis. But at 27_d they seem to have taken fright and to have retired from the'field. Hence the shallowness of the fluctuations which have been recorded over a period of ten months.

"The prices paid at Auckland have satisfied users that crossbred wools are on a well-established basis and prospective buyers have found it difficult to get any concession, even for delivery well ahead. " The ease which has taken place in the Argentine has not affected the outlook for prepared sorts. THE FINER WOOLS.

"Merinos and fine crossbreds are not showing the same strength as the medium and low crossbreds. Although business is rather quiet there is a healthy consumption and topmakers cannot get away from the fact that wool in all markets still looks dear in comparison with the prices which can be made for tops and yarn. "One significant point with regard to consumption is that stocks of yarns in the hands of spinners have been appreciably reduced during the last few weeks. This is a healthy sign. The reduction of stocks paves the way for new business and there is a prospect of some improvement in the flow of new business in all sections of the tops market in the near future. The amount of inquiry received is an indication that users are on the alert but failure to agree about price is often an obstacle to 'business being placed."