OUTLOOK FOR WOOL

Wanganui Chronicle, Volume 83, Issue 36, 13 February 1939, Page 11

OUTLOOK FOR WOOL

NO SERIOUS PROBLEM FEATURES DISCUSSED The outlook for the wool trade is rather vague and nebulous, states a j ecent review bv H D Twson, Sons and Company, Limited. “Our raw material.’’ the review, “as compared with other commodities, stocks, and shares, has fortunately shown a minimum of fluctuation during lhe past 12 months, but there have been vagaries in .he wav of preference and demand. “Crossbred wools are still relatively higher than Merinos due to recent Army contracts and also to the slightly better position ot the woollen trade as compared with the worsted section. “Merino tops constitute the cheapest commodity of all other grades, but as they get nearer the 24d basis consumption is encouraged and must eventually lead to increased turnover and also to a more assured conlidence on the part of consumers and merchants. "The trouble at the moment still continues to be most acute in the worsted spinning section. There are already serious accumulations ol stock by reason of over-production and the fact that oarticulars cannot be procured for existing contracts. “The outstanding feature, especially in the Merino section, has been an improved demand from Germany in Australia, and also in Uruguay. Naturally in South Africa, by their barter arrangements, they are possessed of advantages which have enabled them to be a predominant operator in that market. It is, however, a fact that in spite of thfe advantage, South African wools have been no dearer on a clean scoured basis than Australian sorts. “Another feature that has been strongly evidenced during recent months has been that fashion has shown a tendency to favour woollens, particularly in the present demand for ladies’ all-wool costume cloths, and this has also been accelerated because of the fact that woollen cloths are cheaper than worsteds. “However, thanks to the reasonable values which now obtain, there is no serious wool problem, especially as Merinos arc at such an attractive and workable level. The one thing that the cheaper basis has done has been to rid the market of all fear of competitive artificial fibres.”