WELLINGTON NEWS

Hokitika Guardian, 1 April 1927, Page 1

WELLINGTON NEWS

THE AVOOL MARKET. (Special to “ Guardian.”) I WELLINGTON, March 30. The wool-selling season of 1926-27 in New Zealand was brought to conclusion last Monday with the sale at Wellington, when nearly 21,000 bales : were catalogued. The final sale showed the wool position to be extremely .sound, for there was a keen demand for all Hasses of wool, and prices all round were appreciably higher. The first sale of the season like the last was held in Wellington on November loth. At that date the disastrous coal strike in Britain had just terminated, and the textile trade which suffered severely from the labour trouble did not know, or rather felt uncertain about the future. It was inevitable that buyers should act with caution and prices at the opening sale were very low. As a matter of fact the price per hale was Clfi f)s O.j'd. and !1.267d per lb. Wool was selling at under one sliili'ing per lb. But trade conditions began to improve, and gradually the outlook widened and a feeling of optimism began to animate the trade. As everyone interested must know the December sales showed rt decided advance, the average per hale rising to Cl 7 7s fid. Since then the market has continued to improve, culminating in tho excellent sale at AA'ellington on Afonday. AA’ooi’, of course, has a world market, hut not all those who need wool have operated as freely as might have heel) expected. The Americans have not brought their pre-war quota of the staple. The American duty on wool is very high, hut that would not have prevented purchases on the part of the United States if woo! could have been absorbed : the fact is that the wool textile trade of the United States has boon in a depressed condition for a considerable time and manufacturers could not see a way out. Apparently there lias been some improvement in tile trading conditions for both in London and New Zealand the Americans have operated on a relatively small scale. AVithin the last three or four months Russia lias come on the market and although her purchases are comparatively small the competition is valuable in maintaining the markets. Growers in New Zealand have shown a stronger disposition to accept the prices offering at the local sales, and the prices realised in the Dominion have been above London parity, allowing 2d per Hi for transport and other charges and commission. This has been a strong factor in eliminating temporarily the speculator who has been provided with no scope for his talent and energies. It can he safely stated that the greater part of the season’s clip has been marketed locally, hut it is impossible to say what was actually sold ill tho Dominion. Probably the wool in New Zealand approximated to about tM,000.000. and hv April 12th the whole of this amount wii'l have been returned to the growers. The wool market is strong, sound and stable, hut for all that the average price for the entire clip cannot equal much more than a shilling per lb, which looks good on paper. The costs of production eat largely into this average, so that tho growers' reward is small in comparison. AYool growers may not he fully satisfied with the prices realised, at all events they have reason to ho pleased with thy soundness of the mar- I ket, with the rising tendency displayed which is in striking contrast with tho conditions of the dairy produce market which has been managed hv a hoard. It seems that London as a wool-soiling centre is no longer paramount. Tlie sales in the centres of production have displaced London, and as a matter of fact relatively hotter prices are obtainable in Australia and New Zealand than in London. AVlien prices in the great metropolis are higher than here there is scope for the speculator, hut that score has been doViied Ibis season. The marketing of ; wool locally is obviously advantageous to Ihe grower who hereby holds control ot'or his clip. Ho can if he chooses fix his own reserve, but a prudent grower would not do this without consulting his broker. Tn tho dairy indudrv as now conducted the pro- '

• i.. b•■ , no voice whatever, and must take what he can get. Some day a review of the marketing methods of our various export products must he made with a view to improvement. If butter and choose eoni'd he sold in the same way as wool it would ho a great advantage.