Wool Market Prospects Uncertain

Manawatu Times, Volume LIV, Issue 7282, 9 October 1933, Page 3

Wool Market Prospects Uncertain

VIEWS OF OVERSEAS MERCHANTS

Though they agreed that the market prospects for wool looked more hopeful than for some time past, two wool merchants who arrived in Auckland by the Alariposa on Friday stressed the uncertainty of the position (states the Auckland Star). They were Air. B. Laycock, of the firm of Laycock, Son and Co., Ltd., Bradford, and Air. p. Ale Craw, president of the AlcCraw Wool Co., Pittsburg. The former went so far as to say that no man living could forecast the wool markets, while the latter introduced a large number of '■ ‘if’s” into what ho had to say.

Air. Laycock said that the world stocks of Alcrino wool had become exceedingly low. Prices previously had been so low that many firms had used that particular wool. Now, when it was suddenly discovered that there was little Alerino wool to be had there was a sudden demand. The consecpieneo was, as the Australian sales showed, a sudden and great rise in price. A rush took place to get the wool Home to Bradford, where eager mills awaited the arrival of the first ships. In fact, there was in progress a regular “wool derby.’’ Air. Laycock explained the shortage by the fact that England was no longer a free trade country. First of ail she had imposed a. 10 per cent, duty on yarn and then she had gone off. the gold standard. Tnat had given an impetus to the woollen industry. For the minute the mills at Bradford were working at pressure, and overtime as well. But he thought that by now the peak demand had passed, and that, correspondingly, the peak in prices had been reached. Cables from Australia which he had received showed that prices were falling again.

Ho was asked what he considered were the prospects for New Zealand wool, lie said that he did not know, and that no other man did. “There is no man living who can forecast the wool markets,” he added. But he pointed out that while there had been a shortage in Merino wools, there had been no such shortage in crossbred Wools, which was the type grown principally in the Dominion. Air. McCraw gave, the American point of view. “AVe are just at the point where we can import wool,” he said. “Six months ago we could not have imported any, because wools were so low, and our prices had to show a marked increase before we could take any in,” The increase came, and imports had begun. “But at present we aro just at the point where there is no margin. If our prices fell then we Would have to stop importing.” The effect of the N.E.A. was to be seen inimproved prices. The Government’s inflationary policy had caused an impetus in trade. It was artificial. There would have to be a real demand, not an artficial demand, to keep things going.

Before the depression the amount of .wool taken into America, was valued at £300,000,000. Then imports of wool ‘had ceased, which meant that there had been no accumulation within (lie country. There had been enough domestic wools to keep things going, since some factories had closed down and those which remained open were working only part time. But stocks had become low. In 1933 wools'of the 50/56 grade, sold on a clean basis—that was, cleaned of grease—at 33 cents, or in English money lid. On top of that there was an American duty of 17d. It remained at that figure, so that only a big ad' ance in American wools would permit any importations. “Large quantities as yet are not being imported, but wc have started, and wc are hoping for the best.”

He said that a futures market for tops has started in America, a new departure, but he did not think that tnuch use was being made of it. “It may grow,” he said, “but it is hard to get people to change their way of business. ’ ’