WOOL MARKET

Wairarapa Times-Age, 21 August 1940, Page 9

WOOL MARKET

REDUCED OUTLETS RESULT FROM WAR. More information is forthcoming as to the effect of the exclusion of the Continent from the world’s wool market. The equivalent of 3.700,000 bales was normally imported each year by Europe, a market that has now completely disappeared. The acquisition of the Australian and New Zealand clips by the British Government provides approximately 4,100,000 bales, less the quantity used annually in the two countries. That consumption under the special conditions created by the war may reach 400,000 to 500.000 bales.

The South African clip was sold by auction last season, Great Britain taking a proportion of it at prices equivalent to those paid in Australia. America. Japan, and the Continent bought the remainder. The latter demand has now ceased and the African clip of 850,000 to 900.000 bales is available for use in British. American, and Japanese mills. Five years ago, Japan imported 800.000 bales from all sources for the 12 months period. If that rate of purchasing were resumed it would be of decided help in assisting to prevent an accumulation of stocks of the raw material, but the immediate prospect of such a recovery is not anticipated, states the fortnightly report of Winchcombe, Carson, Ltd.

Reports from the United States indicate that the equipment of military forces is becoming a greater factor in wool consumption. In early June it was reported that the army was calling tenders for the supply of fabrics and blankets which would necessitate the use of approximately 150,000 bales of wool, 50 per cent of which would be supplies of 60’s to 64's quality and the remainder crossbreds. So far. however, that prospective business has not caused a recovery in wool prices in the States.