WOOL TRADE.

Waikato Times, Volume 119, Issue 19892, 22 May 1936, Page 12

WOOL TRADE.

SITUATION REVIEWED. JAPAN’S INCREASED DEMAND. Wlnchcombe, Carson. Ltd., writing- from Sydney on May 12, said:— Due to lack or adequate Continental demand, competition for wool has not been as brisk at the current London auctions as at preceding- sales, but In Sydney orders from Japanese, Yorkshire, Continental and Australian mlllmen have been noticeable in sufficient volume to maintain prices. The experience is an indication of the benefit of Japan’s buying- to the Australian trade. During: the nine months ending- March 31, the total exports of wool from the Commonwealth were 13 per cent higher than for the corresponding period of the previous season, but the shipments to Japan were 668,909 bales showing an increase of 55 per cent. All departments of the Japanese mill Industry have been actively employed. The output of yarns In 1935 was the highest yet recorded, being 2 7 per cent greater than in 1932. Exports of mill products from the country have expanded considerably of late years, but 80 per cent of the goods turned out by the manufacturing establishments are used within Japanese territory. . The people have certainly become woof-minded and with an increasing population consumption Is likely to continue extending. For that reason it is most desirable that every effort should be made in Australia to retain the full strength of Japanese wool purchasing. Manufacturers in that quarter have become accustomed to this country's raw material and the geographical position or the Commonwealth adds further to the advantages of buying the Australian staple. Gratifying Turnover. In Bradford this year, turnover In tops has been less than 12 months before, chiefly owing to a decrease in German buying. The Yorkshire textile establishments have, however, been well employed. In the worsted and woollen trades In February the number of unemployed registered was 4 2 per cent less than a year before. Activity has not been as great as In December last, but turnover was gratifying for the period of the year. Good length merino wools suitable Tor the English trade are now difficult to purchase and will remain so until the new season opens. Only short wools are now available in South Africa. As In Australia, the South African clip was marketed more rapidly this season. Towards the end of March stocks of unsold wool in that quarter were only 18,164 bales comnared with 81,300 bales a year before. The advantage of selling while conditions were favourable is demonstrated by the situation which has arisen in regard to France. Uncertainty exists in respect to the value of the franc. Temporarily business has been disturbed. If French currency is eventually devalued, it is probable that demand for wool will Improve. That was the experience when England went oft the gold standard in 1931, the United States in 1933 and Belgium in 1935. Meantime trade is unsettled and If sales of this -season’s clip had been delayed and bulky quantities were now being ofTercd. the market for the staple would probably be more seriously disturbed.