THE CROSSBRED CLIP

Daily Telegraph (Napier), Volume 59, Issue 229, 30 October 1930, Page 3

THE CROSSBRED CLIP

>9" DEMAND WITHIN LIMITS. PROSPECTS OF MARKET RECOVERY., DEPEND ON TRADE REVIVAL. Just at the present moment one _ of the main subjects of conversation amongst Hawke's Bay sheepmen wherever they foregatlier is the sliocking state of the wool market and tlie pi-os-pects of the coming season. A great deal has been written in respect to the wool iiosition in the Dominion, and so many varying opinions have been expressed, that it is interesting to read a statement by a London wool firm, made late in September, wliich lias particular significauce for Hawke's Bay since it refers specially to crosshreds. "Slumps in wool prices have occurred in the past, and in early every case have been followed by a smart recovery, and possibly tliere seems 110 adeqnate reason why the same sequence shouid not occur again." This statment was made by Messrs Sanderson, Murray and Elder, Ltd., London, on September 19 in reviewing tlie prospects of the wool market. Any revival in tlie demand, however, nrust be dependent upon a general trade recovery, it was added, and as this was by 110 nieans apparent, then it was extremely difficult to forecast the movements in the wool trade. It was generally aecepted that the trend of crossbred values followed that of Merinos, whicli were now on such a low basis that manufacturers were inclined to tuni more to this class of wool. Reporfs emphasised that spinners of crossbred tops for tlie past 10 years were now demanding tliose made of Mermo wools. The consequeiice was fcliat the Bradford and Continental demand for crosshreds was very small and confined to speciality users. The consensus of opinion in manufaeturing centres, therefore, was that eveii if prices for Merinos shouid remaiu firm, values for wool, 56/58's qualities downwards, xnight very easily depreciate even furtlier. Tliousands of bales of the 1929-30 elip were still held in New Zealand and in London. The last series of saies in London showed that witli the exception of really good styled wools suitable for spinners 111 Yorksliire and America, values for medium and eoarse crosshreds liad appreeiably declined from July. "By the tiine the next London saies eommence," the advice continued, "the new season in New Zealand and South America will have opened. U11less the world's oconoinic position iinproves before then, it is difficult to see how values can show any sign of improvement. The onlv briglit factor is that the slock of tops and greasy wools in users' hands is small, but this is due to a large extent to the fact that tlie demand for crossbred tops and yams is small and the knowledge tliat there are suffieient spot stocks to meet any demand that may arise. "As a consequenee of the views we have expressed, we are of opinion that all owners of wool shouid meet ihe market in an endeavour to assist .in stabilising the trade, unless as an alternative they are prepared to hold for an indefinite period. "With the possible exceptions of small fluctuations, we cannot see _any improvement in values for some tinie. We much regret to think that this iu the meantime will produce considerable hardsliip to the growers, but at the same time the fact that values for raiv materials have so materially declined liiust uieaii that costs of production will in due course be reduced and that the standard of living will. be jaodiiisd is ihe pqsitioas,^ ,