WOOL PROSPECTS

Hawke's Bay Herald-Tribune, Volume 81, Issue 28, 27 October 1937, Page 15

WOOL PROSPECTS

Williams & Keltie Review Coming Season PRICES SHOULD HOLD The statistical position of wool is extremely satisfactory, and gives every reason for confldence in the coming season, states Williams and Kettle, Ltd., in their annual review. There is a world need for wool and the pressure of demand upon supply is more acute than it was 12 months ago. Throughout the year raw material has moved rapidly from sheep's back to the infinite variety of iinished textiles which are necessary to meet increasing general publie requirements. There is also the fact that held-over stocks of raw material in New Zealand are negligible and this again lends additional weight in~ inducing us to take an optimistie view of the prospects for this coming season, It is dijficult to estimate the quantity of raw wool on hand.at the various consuming centres, but we have it on reliable authority that these stocks are below normal, and are practically all eaTmarked to fill existing contracts. The remarkable demand for crossbreds, particularly the lower qualities, has been the feature of the past season, and some important factors in this demand . have been injreased requirements for military purposes at home anh abroad, and substantial deaiande which have been in evidence for these low quality wools on behalf of the upholstery ' and floor-covering trades. Simultaneously with the heavy demands for wools of this description appeared a definite shoftage in the production, and we had buyers attending the Napier sale3 who could have talcen much bigger weights of these low quality wools had they been available. When we consider that woola such as just described, that is, qualities from 36's to 44 's, are to-day realising 15}d to 16id, and that these same qualities during the seasons 1933, 1934 and 1935 were selling at round about 5d per lb., it gives one a striking illustration of the change that has come over the market, and there is no doubt that the price of greasy crossbred wool during the three years mentioned was unduly depressed relative to merino values. The present expenditure on armaments is doubtlesg a factor in the revival of the textile industry, and an important contributing cause to ^ the general uplift in trade which has given so much increased purchasing power to our people. We should, however, bcar in mind that, prior to the re-armament scheme coming into force, there had set in already in Great Britain a steady improvement in all branches of industry, xesultiug in a notable slirinkage in unemployment. It is, therefore, apparent that in Great Britain conditions are excep-( tionally favourable, and we think it reasonable to eount upon her requiring an increased weight of wool as compared with recent years. We also anticipate that she will be more active than usual at our early saies. Japan is again likely to be a strong supporter. The Government of that country is treating wool as a necessary import, and what limitations are imposed we think will be mainly in the direction of preventing speculation, It is quite likely her requirements will be at least equal to her last year's purchases. In America wool is going rapidly into consumption, and we expect her to again lend her strength to the market. The American domestie clip is not likely to show any increase, and it seems certain that increased imports will be necessary. Since the issue of our last review tho usual publicity has been given from timo to timo regarding the increasing use of artificial wool substitutes and their alleged menace to the wool grower. It is, therefore, interesting to note that, notwithstanding the enorrnous increase in the production of various artificial fibres, and the restrictions enforced by some countries on tho use of wool, the world demand for the natural staple is stronger than ever. ^ It must be understood tiiat certain countries, notably Germany and Italy, have been foreed by financial circumstances to exploit artificial substitutes for wool to the utmost exteut of their possibilities, not because they consider wool is inferior, but because their national policy .compels them to reduce imports of raw aiaterial. They realise that it is quite possible that the time may come when they may have to rely, to a very much larger extent, on their own resources, and their object is to become as self-supporting as possible. When we consider that wool is more than holding its own, and that the ^demand to-day is ahead of supply, wo can see a confirmation of what we said on this subject twelve months ago. In effeet that was that we should not altogether consider any of these artificial substitutes as competitors, but as allies, for there is no doubt they provide a medium for tho absorption of a tremendous weight of wool. Rayon, for instance, has properties in blending which actually enhance the value of wool and enables manufacturers to obtain effects which appeal to the publie, and will sell more readily than a- all-wool material. Gennany and Italy are both badly in need of wool, and, altliougli their purchases will still be under government eontrol, both countries may be expected to procure up to their fiill limits. Whilst we do ' ot th'nk we should' be alarmod ri lli • nre -M'l rate of production of ivoo' sn'i f'lines, we should not relax onr ell'oi't- to keep wool to tho forefront. bolli in ihe direction ot' , Improvement in (lio growth of the

staple, and, from the manufacturing end, in the improvement and attractiveness of the finished article. Both these sections of the wool trade are receiving expert attention in the way of •better breeding and growth of staple and more intensive research into its possibilities in the manufacturing processes. We will conclude by stating that we expect buyers will be eager to secure all the wool catalogued, and, with stores devoid of stocks, there is every reason to expect another succossful selling season.