The Waikato Times THURSDAY, MAY 7, 1936. THE WOOL SEASON.

Waikato Times, Volume 119, Issue 19879, 7 May 1936, Page 6

The Waikato Times THURSDAY, MAY 7, 1936. THE WOOL SEASON.

The aggregate returns from the wool sales of the-193536 sea—son :how a welcome increase on those of the preceding year. The average prices are still below the level recorded two years ago. but the much larger offerings in the past éeason have improved the total. In no previous season had 700,000 bales been sold, so that the figures for 193536 of 737,454 bales constitute a record. That, however, is largely due to the exceptionally big carry-over from the preceding year, when muny growers refused to meet the market. The bulk of that wool has now passed out of growers’ hands and the next clip will reach practically bure floors. The presence of accumulated stocks is always an adverse factor and the Australian growers have made :1 practice of meeting the market so as to clear each year’s clip. That policy is sound, and this year the sheepfarniers in the Dominion should be able to anticipate confidently a steady demand for the raw material. _.

Prices have fluctuated rapidly during the past three years. In 1932-33 the average was slightly over 5d per Ib. In the following year it exceeded lld only to drop to GM in 1934-34. In the past five selling seasons the average price has been 7.42 d per lb and that was more than 3d per lb below the average of the preceding five years. The depression hit the sheepfarmer first and with exceptional severity, but while many plans were discussed, both here and at the inter-Dominion conference in Melbourne, the growers steadily avoided any system of control. They gave attention to the better preparation of the clip for sale and the reports of the experts show that a measure of progress has been made, .the wool being better classed and the fleeces skirted.

The new system which the Government intends to apply to the dairy industry during the coming season will be watched by the woolgrowers with interest. The Minister of Finance made a guarded reference to a possible extension of Government control, if not of ownership, and the Hon. W. Lee Martin, when he spoke at Motnngi. mentioned the possible extension of the system at the invitation of the producers. In view of the way in which they have avoided any such plan the sheepfarmers probably will be content to watch the scheme in operation with regard to dairy produce. The “tremendous experiment” is not directly to affect them for the time being so that they may be able to benefit by the experience of others. The most cheering aspect of the wool trade to-day is the continued activity in the manufacturing centres. British exports have been well maintained and there has been heavier business on the Continent. Stocks of raw material are said to be on the small side, and the current London sales shouldlaiford a reliable indication of the strength of the demand. With supplies going steadily into consumption buyers will be anxious to cover their normal requirements and the market should strengthen as the year passes. The best indi—cation of market prospects is the activity of mills in the North Riding, and for some time now they are said to have been steadily employed. The abundance of grass will enable the flocks to come through the winter in good condition so that in the coming season the New Zeulund clip should be readily sold. Token generally the outlook for this important branch of primary industry is encouraging.