DEMAND FOR WOOL

Wanganui Chronicle, Volume 83, Issue 35, 11 February 1939, Page 15

DEMAND FOR WOOL

COMMONWEALTH SALES STEADY MARKET PROSPECTS BUSINESS IN AMERICA Although Australia carried over 238,000 bales of wool at the end of last season, the quantity in hand for sale at December 31 was 192,643 bales less than at the same date a year before. It speaks well for the consistency of the demand experienced that the Commonwealth was able to sell 1,395,110 bales in the first half of the season principally to the Continent and Yorkshire, states Winchcombe Carson, Limited, Sydney woolbrokers. The fact is that wool is safe buying at current figures. The chance of making money on its purchase is far greater than the risk of loss. No scope for a marked fall in values exists and a spurt in trade could easily lead to an appreciable advance. American orders have recently been fairly plentiful. Early December mail advices indicate that mill business in women's fabrics was increasing and the unfilled orders for men’s fabrics held by manufacturers were 30,000,000 yards, or twice the quantity recorded a year before.

Climatic conditions play a large part in the state of trade. For a period in the United States the winter weather was unusually mild. Cold conditions arrived and retailers experienced a quick revival in demand for warmer apparel, blankets, underwear and hosiery. The effects of the weather on woolgrowers’ welfare is, therefore, not confined to the pasturing of sheep and the production of the clip. Although the demand from Japan and the United States has of late been brighter, we must continue to look to the Cintinent and Yorkshire to lift the greater part of the wool available. They appear quite capable of absorbing it. The German trading agreement with South Africa has resulted in Germany being a most extensive purchaser in that country. As a result other nations have been compelled to divert a more-than-usual volume of their buying to Australian Merinos. A similar position existed when Japan bought in large quantities at the South African sales. Some English wool importers who to a great degree confined business to the .importation of wool from Africa, have found their turnover seriously reduced by the prevailing situation. Australia is now more than ever Yorkshire's main source of supply for Merinos.