WOOL PRICES

Hawke's Bay Tribune, Volume XVII, 23 November 1927, Page 9

WOOL PRICES

WILL THEY RISE OR FALL? WORLD PRODUCTION AND CONSUMPTION. (By “Sundowner.”) According to world statistics just published by the International Institute of Agriculture, covering the 1925-26 and 1926-27 seasons to July 31st, wool production has increased during this last period by thirty-nine million one hundred and sixty-two thousand pounds. During the same period the world consumption has also increased to the extent of fifty million pounds, leaving a shortage of production of ten million eight hundred and thirty-eight thousand pounds. Reduced to bales of 4001bs. this represents approximately 27,100 bales shortage last year. AUSTRALIAN SHORTAGE. According to unofficial reports the Australian dip this present 1927-28 season is likely to be 500,000 bales, oor 200,000,0001b5, short of its average, while increases from other countries such as New Zealand, South Africa and South America are unlikely to more than make up half this deficiency. At the same time the reports of the prospects of the cotton crop—wool’s greatest competitor—indicate that, almost without exception in the cotton-growing countries of the world, the crop will be smaller than last year owing to unfavourable weather conditions and the ravages of the boll weevil. 1 A FALL NOT LIKELY. In view of this combination of circumstances there is little wonder that wool is in unusually keen demand, and little prospect of the prices at present being paid falling to any extent. In fact the indications are rather that prices will show a hardening tendency. Those who fear the depressing effect on the market of the now’ popular artificial silk, must remember that the supply of this material depends entirely on the extent of the cotton crop, and as cotton has always been used to adulterate wool, in the cheaper class of materials, the position so far as the demand for wool is concerned, is really very little altered since the discovery and extensive manufacture of artificial wool and silk.