Sound Markets

Sun (Auckland), Volume I, Issue 207, 21 November 1927, Page 9

Sound Markets

ADVANCE IN WOOL VALUES

Butter Continues in Strong Position

WOOL and butter appear to be in a distinctly favourable position in the European market, and this week’s commercial review from London indicates that an advance is expected in wool, and that a strong demand is being maintained for butter.

Reed 9.5 a.m. LONDON, Sunday. T HE Prospects for the wool sales opening on Tuesday are regarded as most satisfactory. There is geneial talk of a rise of 5 to per cent, m Merino prices and 10 per cent, in crossbreds, so it is most surprising that some Bradford firms, despite all i j' l ‘' talk about the scarcity of wool there, are sending a considerable number of bales to London for the auctions. Apparently they expect that the Continental demand will he so keen that they will be able to make more profit by selling wool than bv converting it into tops for sale in Bradford. A Bl *adford correspondent writes: Many in the trade assert that they discern signs of a distinct turn of the tide. This is not the first occasion on which optimism has sounded such a hopeful note, but there seems rather more warrant for it than before. “Wool certainly is being used up at a greater rate than at this time in 1928, and there is less in sight. Even if Germany, which is the centre of the greatest European activity, slackens off there is little doubt that the raw material released will find an outlet elsewhere without difficulty. “The obvious difference that has arisen between supply and demand, however, seems to be one of the impelling motives, on the part of buyers of fully manufactured goods, to place orders for larger quantities. “Confidence in the soundness of raw material values now being well established the future of the West Riding trade turns largely upon the outcome

of the present wage negotiations, and there is a favourable prospect of a satisfactory settlement being effected.” BUTTER IMPROVING The butter market continues to improve, and all quotations are higher. There Is a strong demand for colonials from the North of England and, Scotland, probably owing to the smaller supplies of Danish which have been eagerly bought by Continentals, notably Germany, which appears to be very short of butter indeed. German buyers purchased a small quantity of Australian kangaroo brand in London this week. The outlook appears good and traders expect that present prices will he maintained till about the end of the year, for the quantities afioat from New Zealand, Australia and Argentina total 480,000 boxes, compared with 566,000 at this time in 1926. The demand for Australian eggs is steadily increasing and supplies are clearing rapidly. The Jervis Bay maintained the Commonwealth Line’s reputation by landing eggs in practically perfect condition. There is something of a mystery about the retailing of these eggs. Probably most of them are used in restaurants, as they are not visible in any grocers’ shops or stores ticketed, but inquiry at one large suburban store elicited the fact that they had the eggs for sale at 2jd each, though it was not considered advisable to mark them as that would give their age away.—A. and N.Z.