WOOL PROSPECTS

Manawatu Standard, Volume LIII, Issue 26, 28 December 1932, Page 2

WOOL PROSPECTS

LOW COST, MORE DEMAND. UNCERTAIN EXCHANGE. The strong close of the 1932 half-year wool sales in Sydney is regarded by Messrs Winclicombe, Carson, and Co., Sydney, as “a welcome contrast to experiences at the similar series of the three preceding years.” In December, 1929, 1930, and 1931, the Sydney auctions were conducted under weakening selling conditions. At the concluding sales of this year competition was more general than in any period this season. All the Continental buying sections purchased. Japan was active, Yorkshire showed increased strength, and America bought super wools freely. The well-distributed demand augurs well for the inquiry likely to be experienced in the New Year. The low cost of the raw material and the reduced prices at which goods have been realised have unquestionably resulted in a larger consumption of the sheep’s staple. Despite the large clip the world is producing the use of Merino and all the finer,crossbred wools appears to be fully equal to the production of them. THE COARSER SORTS.

The only grades which are not in good selling position statistically are coarse crossbreds. Average 46’s Bradford tops have recently been quoted at 9id and 44’s at 9d. Those prices are only Id per lb above the rates ruling last June, while rates for other classes of tops have latterly been lid to 2id per lb above the figures of six months ago. When wool was dearer, coarse wools were utilised largely for knitting yearns in order to keep prices within specified limits. At lower values the finer wools have displaced the coarser types for that purpose, and the more or less luxury trades in carpets and upholstery goods, for which coarse wools are Suitable, have suffered moie severely in the depression than any other branch of the woollen industry. As far as Merinos and the finer crossbred wools are concerned, a good volume of buying orders for them looks assured. While there is a possibility of an advance in prices for them being registered in the months ahead, ideas in that respect should be kept within conservative limits. A MATTER OF TIME.

The world is not yet on a distinct forward movement of decidedly increasing employment and prosperity. In Great Britain, France and some other countries some improvement in that respect has been seen in the past six months. But it must be remembered that wages in all quarters have been reduced. High prices for wool and other commodities, such as were experienced in post-war years, were only possible because spending power was higher. . , Of late the value of the English it has increased. That movement has effect on the rates of foreign exchange on London and the purchasing power of foreign money in Australia. That development had no results on. prices at closing December sales. Until exchanges are more settled, however, variations in them are a market risk which cannot be ignored; but exchange fluctuations r,re not likely to be great in the immediate future, and we look forward to continuance of a ready demand for the staple at New Year auctions.