Lack Of Capital Limited Wool Buyers

53years ago Fluctuations in the value of wool have always been common. In this article, Farmer’s Weekly explained some of the reasons for this.

As October gives place to November, the first signs are appearing that the decline in world wool values, which has been gradual but almost unbroken since the season opened, may have been arrested. Should this prove the case, it is not before its time so far as woolgrowers’ interest are concerned for, since late August, Merino wools in general have shed most of the price rise which was slowly acquired over the larger part of last season.

During the final week of October, Merino tops (i.e. combed wool) in the Bradford market were quoted at precisely the prices ruling a year earlier, though crossbred tops from New Zealand were below the prices of a year ago. This does not necessarily mean that Merino wools were back to October 1965 prices, because competition for limited business in the Bradford top market has been forcing top prices relatively below wool costs of the day.

But it does mean that, in general, Merino wool prices were not far removed from those of 12 months earlier, and this seems to make nonsense of the cautiously optimistic forecasts with which the season-opening was greeted by experts in many of the chief consuming countries.

LACK OF MONEY

What has gone wrong in the wool world to falsify the prophets? The short answer is money, or, to be more strictly accurate, the lack of it. It is not, and this is important, that wool is not wanted. There is, indeed, ample evidence to the contrary. Nor can the difficulties of the wool world be blamed on the competition of man-made fibres, for these, too, are having their difficulties.

PRICE WAR