The Gisborne Times PUBLISHED EVERY MORNING. TUESDAY, SEPT. 3, 1907. THE WOOL TRADE.

Gisborne Times, Volume XXV, Issue 2175, 3 September 1907, Page 2

The Gisborne Times PUBLISHED EVERY MORNING. TUESDAY, SEPT. 3, 1907. THE WOOL TRADE.

Farmers throughout this district will have noted with considerable satisfaction the cable news published in yesterday’s issue in regard to the position of til© wool trade. The cablegrapliist reported that the demand for all classes of wool was keen, and that tlio positioii had never been sounder in the history of the trade. In other words, the exceptionally high prices which ruled last season will in all probability be again in evidence, if they are not actually exceeded, and all that this country needs for continued prosperity is the climatic conditions necessary for a large clip. Shearing is now general in New South Wales, and it is pos- • siblo to give an approximate idea of the-probable extent of the coming season’s clip. Buyers are accordingly ■beginning to feel their way for the season, *and the question of absorbing .interest is that of supplies. Summarising the position as it existed ten days ago, a writer in the Sydney Morning fHerald wrote thus: —“Will this season’s Australian clip equal or exceed in quantity that of the 1906-07 wool year? is tho question of questions at t.he present time. During tho late summer and early autumn, when parts of this State were experiencing droughty conditions, and flocks were being removed to relief country, being hand-fed, and in some cases being left to their fate, it was generally thought that there would he a shortage in this season’s clip. Rains fell, and prospects improved. Upon the strength of the brighter outlook 'rough''estimates we-e made of tho jirobable output of wool for the ensuing year. Conservative estimates put the Australasian clip for tlio 1907-08 wool year to exceed tliat of last season by 125,000 bales, while outside estimates placed it at an increase of 200,000 bales. These figures were cabled abroad, and an increaso of at least 100,000 bales seemed- to he assured. Further research, however, points to a modification of these estimates, and it is not certain at the present time that there will be any increase at all this season. Latest inquiries seem to point that way. The matter is of supremo importance to wool-growers as well as to wool-buyers, and the earlier any reliable information is to hand the better it will be for all concerned. Supplies, in conjunction with the demand, exercise a piramount influence in determining wool values; and the more clear the situation is at the opening of the season the more stable the market is likely to-be throughout its course. With a vieiv to arriving at a fairly reliable estimate several firms are obtaining the fullest information possible, for the purpose of disseminating it among consumers and others interested. On several of the large flocks already shorn there is roughly a shortage of one pound of wool per head, and this, too, on sheep that were early shorn last year. Should this light weight prove general, as seems likely to he the case, especially with the sheep in the later districts that were shorn last season with 13 months’ wool on, then the premature estimate of an increase this season is not likely to bo realised. Within the next few weeks more information on the subject will ho gained; meanwhile,

those who proceed on the basis of an increase of even 125,000 bales are seemingly favoring what may prove to bo a myth. Tlieso indications should bo kept well in mind, for it is not as though supply was ahead of demand. On the contrary, on last .year's basis of values the trade required every pound of wool produced. The clij) has practically .gone into consumption at remunerative rates to buyers, and they have no accumulated stocks to bar the way to future purchases. So if present indications of no increase are borne out—without mentioning the possibility of a shortage—tlie necessity on the part of consumers getting in at the early doors is apparent. That is,- if they do not wish to be left out in the cold before the performance, or the hotrush of the season, is over.” This certainly makes very pleasant reading for our wool growers, and the actual result will have a very important bearing upon tbe country’s prosperity during the next twelve mouths.