WOOL TRADE.

Waikato Times, Volume 121, Issue 20264, 5 August 1937, Page 16

WOOL TRADE.

JAPAN’S BUYING. . GENERAL OUTLOOK FAVOURABLE. Writing from Sydney on July 26, Messrs Winchcombe. Carson l.td. said:— Circumstances have favoured the wool market since the season closed on June 30. Devaluation or the Trane has given a fillip to the demand Tor rellmongered wool from France and prices have tepded upward On present Indications, however, a definite limit to rising values exists. As the cost or the wool advances, the number of buyers able to do business diminishes. That Is evidence or Inability to sell mill products beyond a specified figure and it will probably exercise a check on the market. In Bradford, 70’s merino tops are tnioted at 40d, a rise or Id on the late luno price and 64’s at 3Sd an advance Df id. Those quotations are conslder»bly higher than a year ago when 70’s tops sold at 32d and 64’s at 30d. The Continental rutures top market shows a rise or 6d to 7d per lb on July, 1936. Prices Tor wool and the manufactures made rrom it have been dominated by the raw material position and that ractor la likely to continue exercising a strong Influence. Statistical Position. In some countries a slight Increase In wool production will probably be seen luring the ensuing season, but any advance in that respect will he offset by foe smaller quantities or wool carried Dver at June 30 in all selling centres and Ihe reduced stocks or tops and raw material on hand at the mills. Competition at the opening auctions of the new season should show a more confident tone than a year ago. On (hat occasion Japan was not a buyer. The Australian trading agreement with that country provides for the purchase of not fewer than 800,000 bales of wool in the Commonwealth between January i. 1937, and June 30, 103 8. Exports rrom Australia to Japan for the six months ending June 30 last were 285,696 bales. Allowing for a limited number of purchases made and not shipped by the date mentioned, Japan has a minimum quota or approximately 500,000 bales to buy In the twelve months ahead which assures a good measure or competition from that quarter. Exports or wool rrom Australia to Japan In preceding years have been as follows: 1028-29. 342,175 bales; 1929-30, 284,659 bales; 1930-31. 605.421 bales; 193 1-32, 628.310 hales; 1932-33. 651.369 bales; 1933-34, 57 1.031 hales; 1 934 - 35. 635,872 bales; 1935-36. 779,857 bales. The Japanese quantity Tor 1937-38 Is not as great as the total from 1^32 with the average for tiie periods prior to that year and will be a considerable influence on Australian markets.