The Guardian And Evening Star, with which is in corporated the West Coast Times, SATURDAY, FEBRUARY 28, 1931. THE WOOL MARKET.

Hokitika Guardian, 28 February 1931, Page 4

The Guardian And Evening Star, with which is in corporated the West Coast Times, SATURDAY, FEBRUARY 28, 1931. THE WOOL MARKET.

The present wool selling season in the Dominion is now far enough advanced, says a contemporary, for the country as a whole to realise the serious position of the wool grower as a result of the collapse of a market in which values have declined to the level of prices ruling in 1913. Interviews have been published with persons prominent in the wool industry, who have strongly deprecated, and even resented, the pessimism of the moment. No doubt there lots been undue pessimism, as might perhaps have been expected, but the situation that is reflected in the unremunerative returns for a most vital staple is unquestionably one to cause a great deal of concern. The low prices of wool that are ruling must have given the textile 1 industry an opportunity of profitable business so that ii is not surprising to learn, as has been indicated by cable, that the warehouses of the At cst Hiding oi Yorkshire are empty. This intelligence, considered in conjunction with recent news from Australia of a considerable

firming in the market for fine wools should prove encouraging to the industry in this country, but it is doubtful whether wool growers will regard as other than idle the appeal made to the Bradford Wool Federation by he High Commissioner for New Zealand for heavier buying and a greater iisplay of confidence. The view that Bradford has done less for the local uarliet than was honed has lately developed into a conviction that the hope for the future of the wool industry at the producing' end lies in the vigorous purchasing of Continental and Japanese buyers, upon whom the 'rowers in this country have so fre•uently had to rely in critical times. It s to these foreign influences entirely hat pa.storalists owe the temporary rvivni which is reflected jn the rise f 71 per cent, to 10 per cent, in allies which characterised the first eek of tlio February wool sales in vciney. Although it, is certain that die fast disappearing stocks of wool at the mills and the Irgli exchange rate have been influential factors in the improvement of the position, it is impossible to overlook 'the important part played by the Ointment. Its buyers appeared at the Sydney sales in full strength with limits apparently raised to a level that gave them command for the time being over the Japanese, who had undoubtedly been the mainstay of uie market for several months. The better prices that accompanied this development were followed wiihin a few days by a further upward tendenev consequent noun the re-entry of .I:i''nne«o operators into tli<> field with limits obviously raised to allow them to compete on equal terms with the Continent, which has been bidding well for wool throughout the season in both Australia and New Zealand. The demand now prevailing far exceeds that of the earlier competitions, and the future thus begins to take on a much more promising appearance than it had only a few weeks ago. The London auctions proved a blow to growers inasmuch as they opened at a price level 15 per cent, below previous quotations, and although a daily recovery had the effect of gradually bringing prices back to the level that obtained prior to the series, it is becoming increasingly obvious that l-otb New Zealand and Australia must look to foreign competition to bring i return of values that will at least meet the farmers’ costs of production.