THE WOOL TRADE

Evening Star, Issue 22460, 3 October 1936, Page 14

THE WOOL TRADE

BUOYANCY OF VALUES BUYING BY JAPAN ACTIVITY IN SOUTH AFRICA In spite of the Japanese situation, which has produced general nervousness over the past month, the general buoyancy of values for wool has materially, assisted in sustaining confidence among consumers, states the ‘ Sydney Morning Herald ’ in a review of the wool market. At the sales in London, Australia, knd South Africa the demand displayed wider distribution, good competition coming from Yorkshire and the Continent. “ Japan’s desire to obtain woo! is ■responsible for the relatively higher level of values at the South African auctions,” states the review. “ Her marked activity so far in that quarter has certainly diminished the opportunity for Continental and English buyers to obtain supplies of the African staple. While Japanese operators are not likely to continue buying the exceptionally large proportion of the African offerings they have to date secured, the effects of their purchasing enhance prospects for an increased volume of buying by Yorkshire and the Continent in Australia.

“ Sooner or later the basis of prices in Africa and Australia must come closer to parity, Japan will not pay more for wool in Africa than is_ dictated by the strength of competition, and a reduction in orders from elsewhere would give her _ the chance to bring her operating limits closer to world basis.

“ In Australia hopes are held that Japan will again buy with fair freedom in the Commonwealth. A feeling exists among some growers to refrain from offering their clips in anticipation of higher prices for burry, topmaking wools if Japanese purchasing is again experienced. “ Probably prices would show some rise owing to competition from that quarter, but it is well to remember that other factors can also play a part. France, by nay of example, is in an unsettled condition, and the absence of demand from that quarter would affect prices. Considerable truth exists in the statement made bv. a member of the wool trade in Sydney that if Japan were bidding in Australia all concerned would be satisfied to accept quickly the prevailing scale of prices.”