WOOL VALUES

Hokitika Guardian, 25 September 1933, Page 5

WOOL VALUES

IMPROVED DEMAND INTERESTING PARTICULARS. (United Press Association—By Electric Telegraph—Copyright.) LONDON, September 23. The “Morning Dost” says: Notwithstanding the rise, wool is not yet dear. A conviction that the era of low jirjces has passed has improved the- demand for manufactures, and industry is bus)' with substantial orders. - 'Hie “Economist,” reviewing tbe world wool situation, alter analysing consumption figures, concludes: The sharp- improvement of values in recent- months was the natural result of a revival in demand coupled with an expectation of a decrease of supplies. The improvement, therefore, is fully justified- Present indications, are that an expansion in the demand for raw wool will continue in the near future. The advance is not iully reflected in retail prices, but it is believed that in the absence of a serious recession in the world’s industrial activity, the rise can be passed on to the consumer without redueng either the demand or prices of wool. . .

Discussing a table showing the- retained supplies of raw wool, it emphasises Japan’s-figured between the years 1.928 and 1932. These in lbs are : 1928, 115,000,000; 1929, 117,000,000; 1930, 115,000,000; 1931, 189,000,000; 1932. 204,000,000.- These figures, it says, suggests that Japan will absorl) and develop her manufacture of woollens at the same rate as she has expanded her cotton industry.

LONDON SALES.

LONDON, September 22,

At the wool sales, 10,036 bales were offered (including 6117 New' Zealand), 7753 being sold. There wae a full attendance and late rates were well maintained, except for -inferior qualities, which were slightly irregular ’and weaker. Greasy merinos (Queensland) top 17, average In- 5-8; -New South Wales 17fd, scoured merinos, Queensland 27 Acl and 25 l-Bd, South Australian 25d and 233c1, New Zealand Gerard 27d. New Zealand greasy halfbred Baffields 16d and lojd. The Yorkshire Post’s” wool expert- says: London’s substantial endorsement of overseas rates, though not- sensational, confirmed most people’s desire to .see a steady maintenance, of a : .-level.: commanding general confidence and increased consumption. 'File “Yorkshire Observer”- lengthily interviewed manufacturers in relation to Japan’s threat to- divert purchase to South American wools, as reprisal against Australia’s anti-dumping tariff. All agree it is bluff, because the South American supply of' Merinos is limited, whereas the Australian is plentiful, It -is essental for the goods in which Japan specialises. Even if Japan did transfer, it would only in* crease the price of South American, and encourage Bradford to restrict purchases there, and buy more from Australia. Nevertheless, it is significant- that Japan is crossing Australian sheep with Mongolian breeds.

N.Z. IMPROVEMENT FORECAST AUCKLAND, September 23. Air Thomas Willear, jum\ ; a New South Wales pastoralist ,a passenger by the Monterey, predicted that if the present wool prices held, New Zealand growers at the coming season’s sales would be agreeably surrjsed by the size of their cheques. He said the Australian graziers did not want to see to rapid a rise:in prices, or too high a price, lest there should be a breakdown, with a. consequent disproportional decline in the prices.