THE WOOL MARKETS.

Gisborne Times, Volume XIX, Issue 1591, 23 October 1905, Page 2

THE WOOL MARKETS.

The causes for the present favorable state of the Home market are reviewed in the September number of Dalgety’s Review. Writing in July in London it was pointed out that the position then was one of great strength. The United States had been an important factor in producing the new situation. Perhaps the American demand overexerted itself and fixed the level of prices in May at an extreme height which might not have been easily maintained. s' Nevertheless in America as in London the position of colonial wool was sound both by comparison with the values of domestic growth, and in view of the continued enormous consumption. The American home supply for the year had been largely sold to consumers so that no serious collapse could be expected from that quarter. The position in European countries was stated to be most pronounced in strength, and since it was impossible, unfortunately, to increase supplies by values, the shortage of wools was of such an extent that it was expected machinery must, suffer seriously before the end of the year. The total Australasian shipments for the year ending June 30th showed an increase of 230,000 bales (including 5000 bales from New Zealand), and this had been completely absorbed. Against all theories prices had not suffered by the increased supply. On the contrary, the market was seldom, if ever, so hungry for a further quantity. The simple explanation is that instead of spindles being employed four to four and a-half days per week, as in 1903-4, the large consumers (especially in Germany) have latterly been working at the rate of six days per week. Of course the effect of the higher level of values was expected to be to check business, and but little easing of the position could be anticipated until next season’s bulk shipments arrive. An increase of another 300,000 bales would not fail to exert its influence as a steadying force against extreme prices. However, it seemed wellnigh impossible to discover anything that could seriously weaken values for some months to come. The boldest speculator hardly dared sell for a fall with so little supply available. The arrivals of September were not likely to exceed 80,000 bales, and except- o ing some Queensland new clip wools the offerings would probably be of a miscellaneous character.' The statement concludes :—“ The next season’s increase will be almost entirely in merino wools. Ihe outstanding feature of the situation is the remarkable strong demand which is now so. evident for fine goods j it is reported alike from all centres, both at home and abroad, and promises to more than counterbalance the additional supplies of fine* wools, The producers of the manufactured articlo are naturally feeling the pressure of high values very acutely, Topmakers and spinners alike find it almost impossible to enforce equivalent values for their productions. Ihe optimistic view is held in some

quarters that the close of the year will sec an end of the difficulties, but it will

not be wise to count on cheaper raw material too quickly, as demand from

all branches of the industry cannot fail to

be strong for a long t.me to come, if only to replenish normal stocks which

have fallen far below the ordinary level,”