WELLINGTON NEWS

Hokitika Guardian, 18 May 1928, Page 4

WELLINGTON NEWS

AVOOL CONSUMPTION". (Special to “ Guardian.”) WELLINGTON, May 16. The price decline recorded at the London wool sales has not been recovered. and no groat importance is to lx- attached t-o the movement. Mamusers in the Old World lira buying from hand-to-mouth and it- may he that supplies at the moment are sufficient for immediate requirements. Australia and New Zealand have vvldP little to market and price movements are therefore of minor interest at the moment. There is ample reason why growers should take an optimistic view of the wool situation, for consumption is responding, production is- at a standstill and stocks everywhere are on a small scale.

The United States makes a special statistical study of mo-t commodities and its Bureau of Census has not n *erlooked the wool, fis estimate ol the world’s production in 192(5 was -2,631.000,0001 b. against an average of 2.631.000,090 lb. in the years 1909-13. In oilier countries for which data wt:"o not so carefully compiled, the estimated production was 672,000,0001 b. in tire-war days and -127.000.0091 b. in 1925, or only 63 per tent, of pre-war production. This bald statement of fact revealed concisely the nature of tlie pressure on world supplies, but

the bare figures of wool predvc ion gave but little insight into the economic aspirations of Ihe'wool-supplying countries, which could not fail to complicate wool textile affairs as the years went by. The closer land settlement in Australia, and the policy of protection Were considered likely to affect production. Til South Africa flic decline in popularity of mnlitiir had driven South Africans to cultivate merino, which hid fair to rival Australia’s best. In South America, cattle In-ceding and the meat trade had affected wool production, while in Great Britain, b ranee jin-d Germany the domestic supplies were appreciably below pre-war levels. Regarding consumption there were some interesting tendencies to note. In pre-war days the United Kingdom registered the highest consumption in the World, with a total of 253,009,000 kilos.

In p-'st-war years the U.S. had taken the lead. Frame was second, the United States third, and Germany fourth. Foreign countries were now purchasing more wool direct frnn primary markets, a fact which might ultimately alf-.v-t London’s supremacy. Competition from newly developed textile countries was indicated by the fact that Japan’s wool consumption lias mounted from 11.000,00911). per annum pre-war. to 72,000,0001 h. and Italy now consumed 139,C00,0001b. compared with 97,090,0001 h. fifteen years ago. Consumption is steadily expending while production is more or less stationary. consequently wool values cannot he depressed, and il depressed cannot ruir.ain .- :> for any I. ngtli of time. FLUCTUATIONS IN BUTLER.

The quotation for New- Zealand salted butter declined toward the end ol

April and values have not n/overdo since. Aco-idiug to London advices, the chief cause for the weakness has been ihe heavy arrivals of Australian butter and the pressure of Australian sellers to clear their stocks. Kangaroo have been quoted down as lew as ]s2s and with larger quantities of Australian butler being olfered at this figure it lots been difficult to keep New Zealand pri.-'.s up to 16!s to 'l6ss. It is anticipated, however, that (henwill bo an improvement towards the end of this month or early in .Tune, wdien it is probable that the hulk of the Australian offering will he cleared and the pressure of Australians in .sell will have coast'd. The future will depend considerably on the weather ioiiditions of the Northern Hemisphere, and present reports indicate that an early spring with a flush production is likely. The revised duty of fid per 11> on butter imposed by the Commonwealth Government, will raino into operation in tlio middle-of next month, and it is stated that Now Zealand exporters have been anxious to place a large quantify of butter oil the Australian market. AYo may look upon this market as lost except in periods of serious drought.