WOOL TRADE

Waikato Times, Volume 122, Issue 20503, 20 May 1938, Page 8

WOOL TRADE

DROUGHT IN AUSTRALIA Writing from Sydney on May 10 Messrs Winchcombe, Carson Ltd., said:— Sales of wool In Australia now total over 2,400,000 bales, or about 85 per cent, of the quantity estimated to be available for the season. In Sydney 1,013,648 bales have been sold. Despite the unsettled world conditions which have prevailed, large quantities of the sheep’s staple have round purchasers and the wool sold in the Commonwealth to April 30 realised an average or 13d in Australian currency. • A larger carry-over than usual will be on hand at June 30, not because demand does not exist Tor it, but owing to the fact that some owners are unwilling to accept current prices. A carry-over Is not desirable from the viewpoint of market welfare, but its efTect this year will be re lured, if not eliminated, by decreased production in Australia as a result of drought conditions. The plain country and some of the slope country of New South Wales is suffering one of the worst periods on record. It Is not a question or growing wool, but a problem of preserving the live? of the stock which normally produce It. and the State usually grows 50 per cent, of the Australian clip. Portions of Victoria, Queensland and Western Australia are similarly affected. The supply of Merino wool which will be shorn will consequently be less than for mar*- vears an 1 the decreased amount will ulf- r unsold stocks. The bad season will also result tn the clip belntr below usual standard In conriir on and lensrth. a lartre part of it will give reduced manufacturing results. IT trade abroad shows marked revival the supplv portion may prove a source of ” market strength 1 111 blows the wind tha» profit- nobody " The rastorallst fortunate enough to be able to produce a well-gtuwn clip is likely to find competition keen for his product.