WOOL TRADE

Waikato Times, Volume 122, Issue 20512, 31 May 1938, Page 12

WOOL TRADE

POSITION IN AMERICA GERMAN ACTIVITY Writing from Sydney on May 24, Messrs. Wlnchcombe, Carson, Ltd., said: The wool market has shown very small variation since last January. Slight upward and downward fluctuations have been experienced, but changes have been too limited to disturb the confidence of consumers in raw material costs. Appreciable improvement in the price or wool largely depends on developments In the United States. A brightening in business In that country should have favourable results on the value of most commodities and the sheep’s staple would benefit directly and Indirectly by that alteration. In late April mail advices show better Indications existed for a much needed Increase in turnover at the American mills. The establishments had previously only been running at 30 per cent, of capacity. Authorities expected that during July and August manufacturing would be proceeding at a more normal rate as the Government’s spending policy gets under way. Stocks of shorn wool In all hands, except growers, at the close of March were 166,631.0001 b greasy basis compared with 165.154.0001 b a year before, but a larger proportion or the current season’s wool Is still unsold In the States than in 1937. The total quantities on hand are not considered to be unduly heavy ir sales of fabrics show even reasonable revival. The future of American trade Is dependent upon confidence and good feelings between the government and commercial and Industrial Interests. Time will tell whether that necessary unity will be enjoyed. On the Philadelphia market at thp end of April wool was changing hands with more freedom but the movement was considered lo be partly speculative in anticipation of a regain in prices. Specula tlon. however, a? often as not. provides the leverage which sets an advance moving in the value of the sheep’s staple. London Sales Tli« stronger tone seen at the dope of the London May sales is a favourable factor. During the preceding week of the English auctions. Russian buyers did not operate. But during the final week their purchasing gave a welcome fillip adding strength to Continental and Yorkshire bidding. The experience shows the relatively limited development required to put the market on a better selling basis. Despite the large production of artificial fibres, given normal mill activity, production and consumption of the sheep staple Just about balance.

Germany has certainly been the surprise of this season. The lower cost or the raw material this season compared with a year ago has certainly permitted her to obtain larger quantities with the funds she has available, sne nas, however, expanded her purenases considerably not onlv In Australia, but also In New Zealand, South Africa. Argentina and Uruguay'. From July to the end of February last her Imports of wool rrom all sources were over 20 per cent, more than during the corresponding period of the preceding season and her buying since that time has been decidedly greater than during the similar month's of 1937. Stocks of wool In German hands had reached a very low level and the textile industry has been active. The increased purchasing or raw material has unquestionably been most opportune owing to the smaller quantities taken by Japan and America.