WOOL VALUES

Hokitika Guardian, 5 March 1929, Page 8

WOOL VALUES

GENERAL POSITION SOUND. COMPLAINT OF TO JAM AKERS- ■* In view of tile declining tendency of tlie wool market during the past few weeks the following commits hy the well-known Sydney wool brokers. Messrs Winchcombe, Carson and Co., dated February 6, are of some interest :

“Though some irregularity has been experienced in wool values of late the likelihood of any marked setback in rates is remote. When even limited downward movement is seen some persons will always he found who anticipate the whole of the trade losing confidence and prices showing a mark ed fall. When the market is on tin rise, those of that turn of mind are equallv pessimistic of the disaster aboard when wool gets too dear. Fortunately the majority of those win handle wool are more balanced in tehir ideas and recognise that wool values are never stationary indefinitely, and the extremes in low prices and high prices only result from unusual circumstanaes.

“Nothing has arisen this season to produce an extreme movement in tinmarket one way or the other. Wool is 10 to 15 per cent cheaper than it was a year ago. Supplies of it are more plentiful. Topmakers in some quarters complain that enough nnr gin has not existed between ihe cost of wool and the prices they have been able to get for tops. That complaint lias been registered on many occasion 4 but the raw material has continued to make satisfactory rate-. The man who confined his activity solely to the manufacture of tops may not have done well, but the millnuin who manufactures goods in all stages from top l to fabrics has not Been so badly situated.

“Much has been heard of poor truth’ But during the eleven months ended hist November Great Britain exported nearly 159 million square yards ot woollen and worsted 'fabrics, not quite 1 per cent, less than 19*27. France’s exports of fabrics to the cud of October were 5 per cent greater than in 1927. Italy’s exports for the same period were 10 per cent greater and Germany had maintained her foreign business. In most countries exports of tops displayed a decline, but the maintenance of trade in fully finished goods does not look as though the price of wool was pressing too severely on the few who used finished woollen materials. It rather appears that the topmaker was being squeezed between the textile maker aad tin wool market. That is unforrunate for those who specialise in topmaking but it does not necessarily mean thai wool prices will suffer unduly. 'lhe situation would be stronger were top makers doing well, but even if price, for the staple were lower, comber; might find themselves under just as great a pressure from those w!jo buy their goods.