WOOL TRADE

Waikato Times, Volume 121, Issue 20253, 23 July 1937, Page 2

WOOL TRADE

OUTLOOK PROMISING. JAPANESE POSITION. Writing rrom Sydney on July 18. Messrs. Wlnchcombe Carson, Lta., The wool market has now reached Its seasonally and usually quiet Period. Summer weather prevails In the Nortnern Hemisphere, where the greatest pan. oi the world’s clip Is consumed. A large number of the manufacturing concerns are In the midst or their yearly balance of accounts and stocktaking and retail trade in warm apparel is at the minimum. London wool sales, however, are proceeding on a firm basis of prices with competition showing a broadening and consequently strengthening tendency. m Sydney, the Inquiry for fellmongered wools from the Continent is not as bngnx a 3 a week ago, but Yorkshire has purchased some lines at good figures. The figures obtained for full wool parcels are 30 per cent higher than the rates ruling Tor similar lots a year ago. Often at this period of the year, selling rates for tops are lowered to some extent in an effort to stimulate trade, but so far tbls year, sellers of tops for prompt or forward delivery have not reduced prices. Neither the cost of wool at tne current London auctions nor the position of stocks of raw material abroad, warrant concessions In prices for tops and yarns without the seller of the latter Is prepared to take the risk of some unexpected International development upsetting trade. Japan’s Activity. Apart rrom the uncertainty or how much Japan would buy owing to the trading dispute with Australia, the outlook tor the sale or wool was favourable 12 months ago. It has more factors in Its ravour to-day. Employment is greater and the market for the sheep’s staple has added strength because rates for other commodities have meantime advanced giving industry throughout the world larger earnings. Metals by way of example are about 50 per cent clearer than in July, 1936. Japan purchased bulky quantities of wool in Australia and elsewhere from January l onwards. Her reported stocks or wool at March 31 were 21,000,000 lb. more than at December 31, but they were only 45.900,000 lb., being 25,000,000 lb. less than at March, 1936, and 41,000,000 lb. below June, 1936. when they reached their peak point. The consumption or wool keeps large. Originally practically all the sheep’s staple she Imported was used in the production of goods for internal purposes. Her export trade is now a decided Influence on her requirements. In 193 2 Japanese exports or all wool and mixed fabrics were only 4,371,000 square yards. The 1936 total was 37,000,000 square yards being 30 per cent more than a year before and the figures lor the first quarter of this year showed further expansion. That business is a valuable contributor to Japanese revenue. Strenuous efforts are no doubt being made to increase It and the presence of it In conjunction with tlie quantities utilised for home needs assures Japan’s position as a purchaser of the world’s clip. No signs are in sight that wool will cheapen to any appreciable degree. The greatest risk appears to he that it may, m future, advance too much in cost and thereby lessen the use of it.