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CONTINUED BUOYANCY FOR TOPS IN
BRADFORD
Opening Of Sydney Sales Viewed With Conservative
Cheerfulness
Winchcombe, Carson Ltd. report:—
The most favourable 'wool market indication
is supplied by the continuedbuoyancy
in prices for tops in Bradford.
In June ,the Opinion vtbe expressed
by some authorities that 30d
or slightly less for 64's tops was certain
to be seen. Some pressure was
exerted in an endeavour to buy at
that level, but sellers in view of the
strong raw material position have resisted
efforts to depress prices. At
the recent level, 32 id, the tops mentioned
are 2d per lb. dearer than at
the close of August, 1935. From the
aspect of supplies, that level of
value is justified as the statistical position
of the staple is stronger than
twelve months ago.
The course of values will naturally
depend upon the volume of trade
as well as the supply position. Wool,
however, has not made an isolated
advance since July. Bates for wheat
and most metals are higher than in
that month. The general index of
commodity prices in Great Britain is
about 7 per cent, higher than at this
period of 1935. The only prevailing
doubt respecting the future is in
the distribution of Japanese demand
and 1 in whatever country Japan operates,
her purchasing must prove a
general influence on world prices for
the sheep's staple.
In some directions, the iclea. is
held that wool values will probably
open on a good basis, but
are not likely to hold. No; person
can supply a definite opinion in
that regard. Values are just as
likely to hold as otherwise. Admittedly
anxiety to obtain supplies
may be a special factor at
early auctions, but provided
prices do not reach a level which
checks trade, there U no reason
to assume that business will
dwindle.
During the past
twelve
months,
with values approximately on present
basis, turnover at the
mills
in
the
various consuming
countries
fully
coped with the
quantities
of
wool
available.
As a result of stability in
prices and- the business
experienced
millmen as a whale enjoyed the most
profitable twelve months
they
have
seen for many years.
Have business
prospects diminidied?
We
do
not
think so.
The
nervousness
of
depression
years has almost disappeared.
Statistics
may be available by the "hundred
weight" but one of the most important
market
influences is human
feeling, confidence or fear.
The latter
was largely responsible
for
the
low prices experienced for wool and
other
commodities.
Fortunately
it
has been displaced.
England, to the
fore in leading the world from its
despondency,
retains
the
development
in business she
has
gradually
reaped during
recent
years.
Often
prior to an election in
the
United
States, commerce sags.
Despite the
election next
November,
conditions
in America are healthy. Italy among
other quarters is likely to buy more
wool in the world's markets than a
year ago.
Germany and Russia also
show more favourable buying indications.
Our
own mills in Australia
are likely to be
extensive
purchasers.
Whilst we would depreciate overoptimism
in regard to prices, we see
good reason for conservative cheerfulness
regarding the coming season's
sales.
The Australian selling season opens
in Sydney on Monday next, August
31. We offer catalogues on Thursdays,
September 3 and 10.
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