WELLINGTON NEWS

Hokitika Guardian, 25 August 1930, Page 2

WELLINGTON NEWS

- THE WOOL POSITION.

v /* . / (Special Correspondent.) • * •• j . •" , - WELLINGTON, August 22. The wool season 1930-31 will, open next month in Australia, for the first sale is. to begin in Western Australia on September 9, it is therefore of some interest to gather together the, views of experts and others as to the prospects. At the July London sales prices receded by/fully' Id; and this was reflected in the sale at Wellington on Tuesday last when over 4000 bales-of fleece was offered, and the market appeared to derive its support mainly from Continental buyers. Wool has been filtering into. Melbourne and . Sydney, and reports frpm both places state that the wool already to hand reflects the unfavourable season, being described as thinly-grown, light in condition and carrying a fair nmount of dust. The N.Z, clip on the other hand should show full growth, as the winter has been cold, but there may be some lightness. We also ought to be able to show an increase in the clip.. The Australian Mercantile Land and Finance Company, Ltd., in a comparative review of the. wool situation points out that comparatively- low prices of raw wool have been followed by a notable departure in manufacture, in that.more pf it dg being used in output and the public is offered a better article, style and design-is calculated to . re-establish, woollen wear. Generally speaking here has; been ho relapse in the improved feeling noticeable for. some time regarding the future! ■: , ::

The position - of! world wool stocks is infinitely better than that of wheat, simply because of wisdom in acknowledging the titter futility of attempting evasion of supply and demand. Considering the general trade depression and credit difficulties the , purchase of the world output, of ivool approximately, 10,000,000 bales, even, at reduced prices represents a feat of the first magnitude. 7 •• / V ‘ At various times statements have been made that the use of artificial fiferes has lut severely into wool consumption, and that the sheeps’ staple was losing its grip on the woollen textile trade. Those fibres made remarkable progress, but the fact cannot' be ignored that their decided headway was made between 1923 and 1929 when wool prices were high. During 1923, 97,000,C001b of artificial fibre was produced in the world, and, in 1929 production reached 404,00,0001 b; hut in the latter yart of the year the output of the fibres far exceeded their use. The twelve months finished with supply stocks, many of the factories were in financial difficulties, and steps were taken to curtail the quantity turned out. The world consumption wool.-has at least. kept pace; with its production. The Australian, New Zealand and African clips have passed opt of growers’ hands and any wool held in London and South America are. in those centres because the owners of them will not sell at ruling price*. As far as Yorkshire is concerned the future of wool buying looks uncertain, In Japan the position is somewhat obscure. Financial conditions in that country are stringent, but great efforts are being made to attain stability, and Japanese milJmen are now endeavouring to develop a Targe export trade in woollen goods in China and other Far Eastern countries. Prospects for keen continental purchasing of the new season’s wool are promising; thus it is believed that the future of ■ wool selling is reasonably good, and there may be some slight improvement in values, x The quantity of tops on hand ip Continental centres at the end of May was 40,715,4001f0' being the smallest total seen at any period during the past two years. At the end of May the total French stocks of merinos and crossbreds was only 22,822,8C01b or 26 per cent, below the quantity on hand at the same time a year previously. German stocks of merino tops were only 4,463,8001 b and crossbred 5,225,0001 b, the total being the smallest seen for a number of years and being practically 50 per cent, lower than at the same date of 1929. In Belgium and Italy stocks were flower. The top position, especially on the Continent, looks very good, but it would be unwise to become oyer optimistic in regard to wool values because the top position appears healthy, nevertheless the situation is promising. After the next London sales due next month, the position should be more clarified.