THE WOOL OUTLOOK

Hawke's Bay Herald-Tribune, Volume 81, Issue 55, 27 November 1937, Page 16

THE WOOL OUTLOOK

Yorkshire Is Still Pessimistic •> A STATE OF DOUBT Unfortunately tke manufacturers of Yorksliire liave been pessimistic of late. Their frame of mind is reflected in sagging tops quotations, and, ir: .turn, the current raw wool prices aro down, comments R.V.B. in the Australasian. Only a month or two ago we "were told that whatever might be the demnnd for wool fro mother countries, the Tequirements of the manufacturers in Britain would be greater this year than ever, and that the lively competition of buyers for Yorkshire experienced during the first few saies of the season would be eontinued. But • reeent Yorkshire bidding for wool has been disappointing, and, in consequence, there prevails at the moment a state of doubt in wool trade circles concerning the outlook. At any time, however, more cheerful conditions might arise. Next week, perhaps, there may be better Yorkshire orders in the market, and all .will be well. The market atmosphere will then be changed for the better. Instead of searching with melancholy care for all the black spots we will be finding and cherishing the encouraging hopeful signs. And yet more than 40 per cent. of the wool sold in the Commonwealth this season has been taken for Britain. The bulk of the shipments to Britain have been for the mills of Yorkshire. Nothing has happened aetually to suggest that the incidence of the demand for wool will be changed greatly or that less than 40, per cent. of the total ship-

ments for the full season will be for tho United Kingdom. If that percentage of our wool shipments for the full season is eonsigned to Britain surely we can have little eause for complaint, but when the influential men of Yorkshire are quiet, even temporarily, a cloud gathers over the market. Such is the influence of Yorkshire in the wool markets of Au«tralia. The wool market is depressed at pr-esent, prices at the London and Syd* ney saies having been well below last seasons ' closing rates. Crossbreds, .which comprise the bulk of the New Zealand offering, have been particularly / weak, being up to 25 per cent. lower at this month 's London saies eompared with prices in September. Tho world stoeks of raw wool were "down to" the sheep's back" at the opening of the season, and tjiere was no carry-over from last season to be sold, Stocks of finished cloth are stated to be fairly heavy in New Zealand, and there are indications that this position is fairly general. The war in the East has also affected the market, as neither Japan nor China, both large users of wool, can buy any great quantity at present. A setback to business in America has been another faetor which has had a weakening effect on wool prices. As against these adverse conditions, however, the woollen mills in Yorkshire and other parts of the world are operating at capaeity. Business is good in England, and the demand for woollens is lceen. There is a widespread opinion that the lower prices for wool are not justified and that a rise may occur when the general commodity markets have. righted themselves.