FARMING WORLD

Waikato Times, Volume 125, Issue 20911, 16 September 1939, Page 23 (Supplement)

FARMING WORLD

WOOL POSITION

JAPANEBE BUYINO IMPROVED CONSUMPTION A moderate quantity of good topmaking and average spinners’ greasy fleece wools have recently been purchased by Japan In Sydney. The continued demand on that account, though moderate in volume, is a favourable market indication, report Messrs Winchcombe. -Carson. Ltd. Japanese stocks of wool have reached a very low level. Despite the use of artificial fibres, the quantity of raw material imported has not kept pace with consumption. At the end of April the quantity held in Japanese warehouses was only 20,600,0001 b. being 30 per cent less than a year before, and only one-fourth of the April 1937 total. Japanese exports of all wool and mixed fabrics have shown a regain this year, 11,300,000 square yards being exported from January to May, an increase of 1,800.000 square yards on the 1938 figures for the period. Statements have been made by authorities in Japan that she Is likely to buy larger supplies this season than during the past twelve months and the returns quoted convej evidence that larger purchasing will be necessary. In Yorkshire turnover at the mills has shown a very extensive recovery this year. Export of tops have risen 50 per cent and the use of wool on home account for uniform and civilian purposes has risen to a marked degree. Yarn and fabric export** also displayed improvement. Employment figures indicate that in July the mills were as busy as in early 1937, but in considering that statement due allowance must be made for the fact that a good proportion of the business was for Government orders on which definite limits exist in regard to cost British Mills’ Activity It should, therefore, not be assumed that the activity in the British mills is likely to cause wool values to rise to the high levels of 1937. In that year Japan, by way of example, imported about 800,000 bales of wool from all sources. 'Her present needs are at the most about half that total. Italian requirements are also smaller. The wool position, however, is more favourable from the standpoint of selling than it was at this time last year. Consumption of apparel wools in the 'United States has increased remarkably compared with the first half of 1938. Production of tops in France was 33 per cent greater. Belgium has used appreciably larger supplies and slightly more wool and tops have been consumed by the Italian establishments. Germany imported wool with much 'greater freedom during the past season. Activity was well maintained at her mills. Her stocks of raw material had reached a very low level and some reports state that manufacturers still have some difficulty In obtaining the essential needs, but German trade figures are now not issued with their previous freedom. It is consequently difficult to estimate the probable trend in her wool purchasing activity. Generally the busier manufacturing conditions in most countries should put consumers in better heart for buying the sheep's staple, but the great need is absence of international tension. Those circumstances would give all millmen increased confidence to stock up, create a keener demand and improved prices.