WELLINGTON NEWS

Hokitika Guardian, 8 July 1927, Page 1

WELLINGTON NEWS

THK WOOL MARKET. (Special to • Guardian ”.) WELLINGTON, July (j. There were not wanting indications that the Luiidon wool sales, the fourth ol the series, which commenced last I iiesdny, would show an improvement in values, and the anticipations have been realised. '7 me, the advance is not very pronounced, still it is a. reae*Hm nn the .May sales when owing to heavy withdrawals, the sales had to ho closed sooner than was originally intended. Bradford, however is not keen in seeing values advance, for trade in ma nui act tired and semi-manufactured goods is still far from being satisfactory. Ihe view has been put forward in London that the British public is acting very much in the same way as tiie Americans have been doing during the past year or to, and the motor eat has had something to do with tiiis. Cars are now avail'll bio on the hire purchase system, and people are acquiring them instead of spending so much money on clothes.

Another factor against dear wool is the l increased use of substitutes for mixing purposes, and the growing output oi artificial silk was hound sooner nr later to have its effect on raw wool values, while the American offering of foreign wool in London has also had an unsettling ell'eet. In connection with the use of artificial silk exports of rayon yarn from Italy amounted to 701.1178 kilos in 1026, against 7,250.807 kilos in 1025, and 1,082.780 til IU2I. The production of rayon in the United States for 11120 was 02.81 (>,OOOII > or an increase of 21 per cent over 1925, while imports into the United States from other silk producing countries are ai'so increasing.

The position is said to he that users of wool at least in F.ngland. are determined to continue their resistance against any attempt to force values to a higher basis, and although they arc carrying light stocks they think they are pretty certain of being able to obtain fresh supplies at reasonable rates should the state of trade in the near future warrant any increased purchase in;; of raw material. As a very large industry in Kngland depends more and more upon cheap materials, in consequence of heavy taxation anti keener competition from the Continent, there is a disposition there to attach undue importance to factors which imrv make for low wool prices. The break with IGissia in consequence of raid on Arens has no disturbing effect on Bradford.

It was reported that some big weights of wool and fair quantities of tops and yarns had been purchased in Yorkshire by Soviet representatives during the past two years, and as the requirements of Russian mills will still have to he met buying must continue in Kngland or elsewhere. No new orders had been placed after the raid, hut deliveries against old contracts were being made, and the general opinion was that the Soviet would meet the hills as they became due. Most of this business was done on long credits, frequently on five and six months’ hills, and these hitherto have been met. The Soviet has been for some years reequipping its mills with modern machinery and actually biiii'ding new mills, and how it is to run those mills without supplies of merino wool, which must he obtained from the British Empire, ii is impossible to see. FROZEN M FAT OUTLOOK. There is a probability that the prices for frozen meat' will show some improvement,. While various factors have operated to bring prices of meat in the British markets to a disappointing level competition among the

large meat companies In Argentina is generally recognised to have been one of the pauses of the imsalifnctory conditions that have obtained in the past two or three years. Cattle raisers in Argentina complained hit ferly of the prices which were being paid for their slock, and the Government of that country was approached with a view to having the industry placed on a bolter footing.

In March the marker for calti'e showed some improvement. The higher prices tlial were then being paid were attributed by some traders to the opening of new freezing works intensifying (ompeTition among the buyers, hut export interests were of opinion that (he higher (imitations were due to agreement in London based on the recognition of tlie fact that it was advisable to give breeders of cattle a little more encouragement to study the supply of suitable cattle for the trade.

Owing to the unprofitable nature of the business several cattle companies in Argentina have gone into liquidation and this lias brought home to the freezing companies what a substantial falling off in production would mean to them, ff chilled beef improves in value it will re-act on ail other frozen meats in the Smitlifield market.