The wool situation

MISSING IMAGE

Material Information

Title:
The wool situation
Uniform Title:
Wool situation (1937)
Physical Description:
64 no. : ; 28 cm.
Language:
English
Creator:
United States -- Bureau of Agricultural Economics
Publisher:
Bureau of Agricultural Economics, U.S. Dept. of Agriculture
Place of Publication:
Washington
Publication Date:
Frequency:
monthly
regular

Subjects

Subjects / Keywords:
Wool industry -- Statistics -- Periodicals -- United States   ( lcsh )
Genre:
serial   ( sobekcm )
federal government publication   ( marcgt )
statistics   ( marcgt )
periodical   ( marcgt )

Notes

Statement of Responsibility:
United States Department of Agriculture, Bureau of Agricultural Economics.
Dates or Sequential Designation:
WOOL-1 (Jan. 1937)-Wool-64 (Apr. 1942).
Numbering Peculiarities:
No. 1 called new series.
General Note:
Title from caption.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
oclc - 02269655
ocm02269655
Classification:
lcc - HD9894 .Un33
System ID:
AA00011232:00001

Related Items

Preceded by:
World wool prospects
Succeeded by:
Livestock situation
Succeeded by:
Livestock and wool situation

Full Text

UITED STATES DEPARTMENT OF AGRICULTURE
Bureau of Agricultural Economics
Washington

WOOL-33 September 14, 1939
INN 0 L ----------------------------
COi 1, T H E W 0 0 L SITUATION


Summary

US DEPOStTORY
domesticc wool prices advanced 8 to 15 cents a'pound, scoured

ba-sis, in the first week of September following the outbreak of the

European war,. Prices of ,graded wools at Boston in the week ended Sep-

tember 8 reached the highest level for the current season and were 10 to

20 cents a pound, scoured basis, higher than a year earlier, according

to the Bureau of Agricultural Economics.

The 1939-40 wool sales in Australia have been cancelled, following

arrangements for the purchase of the entire Australian clip by the British

Government. A committee has been appointed to direct the appraisal and

shipment of Australian wool to England and other countries to be desig-

nated by the .British Government. Australia produces about one-half of

the wool clip of the Southern Hemisphere.

Mill consumption of apparel wool in the United States declined

seasonally in July, but was 20 percent higher than in July 1938. Con-

sumption on a grease basis in the first 7 months of this year was 60

percent larger than in the same months last year and was almost 20 percent

larger than the 7-month average for the- 10 years 1928-37. Mill orders for

wool fabrics on July 1 were about 40 percent larger than a year earlier.

Domestic supplies of raw wool. on August 1 were smaller than a

year earlier and were estimated to be smaller that the 5-year (1933-37)







WOOL-33 2 -

average. The carry-over of wool into the 1939-40 season in the Southern

Hemisphere was much smaller than in 1938 and probably was below the June 30

average for the years 1933-37. Supplies of wool in Continental Europe and

the United Kingdom, however, are believed to be relatively large.

The domestic wool manufacturing situation will be influenced in

coming months by war conditions in Europe. While domestic production of

wool is now 50 percent larger than in 1914-17, production is not sufficient

to supply the normal domestic requirements. The United States usually

imports considerable quantities of apparel wool as well as practically

all the carpet wool consumed in this country.

The World War in 1914-18 resulted in marked activity in the domestic

wool manufacturing industry, and in a sharp increase in imports of apparel

wool into the United States. Net imports of such wool in 1914-16 were

almost 4 times as large as in 1911-13, and imports continued large in

1917 and 1918. Exports of manufactured wool goods increased sharply from

1914 to 1916, but declined in 1917 and 1918. At the end of the war,

however, stocks of raw wool were very large in most countries.

REVIEV4 OF RECENT DEVELOPiENTS

Domestic Situation

Domestic wool prices rise sharply in early September

After remaining largely unchanged in August, wool prices in the
domestic market advanced 8 to 15 cents a pound, scoured basis, in the
first week of September, following the outbreak of the European war.
Prices of graded fine staple combing'territory wools reached as high as
90 cents a pound, scoured basis, at Boston in the week ended September 8
compared with 73-75 cents a month earlier and 69-71 cents a year earlier.
Graded Ohio and similar 3/8 and 1/4 Blood bright fleece of combing length
sold at 35-40 cents a pound, grease basis, in early September compared
with 32-34 cents in the early part of August and 30-31 *ents in early
September 1938.






WOOL-33


The United States.average price.of wool received by farmers on
August 15 was 22 cents a pound compared with 21.8 cents on July 15 and 19.8
cents on August 15, 1938.

Wool imports continue larger than in 1938

United States imports of apparel wool for consumption l/ totaled 44.4
million pounds in the first 7 months of this year compared with 11.5 million
pounds imported in the same months last year and an average of about 51
million pounds for those months in the 5.years 193.3-37. The increase in
imports this year compared with last reflects the wider spread between domestic
and foreign wool prices--thus 'far-in 1939. Imports of apparel wool in July
totaled 5.6 million pounds- .compared with 5..3 million pounds in June and 2.9
million pounds in July last year.

Imports for consumption in the first half of 1939, by principal countries
of production, are shown -in .the accompanying table.

Wool: Imports :fdr consumption, by country of production
United States, January:- June. 1939

: :- Apparel wool
Country of Carpet wool : Not finer : Finer
production than 40s : than 40s
I: l1,000-pounds 1,000:pounds. 1,000 pounds

Argentina 24,349 6,893 1,577
Australia.. : 14.. 129 14,557
New Zealand :... 5,267 3,104 3,186
Uruguay. 199 247 5,216
Union of So. Africa :573 528
.British India : 20,636 302
United Kingdom 5,835 686 1,191
Syria 4,34g 65
Iraq : 3,885 -
France 2,927 120 13
China 1,017 80
All other : 7,569 110, 798
S.Total 76,619 11,736 27,066
Compiled from Monthly Summary' of Foreign -Commerce, ,June 1939.


1/ Wool entered .for immediate consumption plus wool withdrawn
warehouses for consumption.


from bonded


- 3 -






WOOL-33


Mill consumpti:-n declines seasonally in July

The weekly rate of mill consumption of apparel wool in the United States
was 5,498,000 pounds, scoured basis, in July. This was 7 percent lower than
the June rate of consumption but was 20 percent higher than in July 1938. The
decline in consumption in July was largely seasonal.

Consumption of apparel wool on a grease basis in the first 7 months of
this year was equivalent to 295 million pounds of shorn wool and 47 million
pounds of pulled wool. In the same months last year mill consumption was
equivalent to 174 million pounds of shorn wool and 36 million pounds of pulled
wool. Consumption on a grease basis from January through July was almost 20
percent larger than the 7-month average for the 10 years 1928-37.

Mill orders for wool fabrics larger than a year earlier

Unfilled orders for woven cloths held by 119 mills on July 1 were about
15 percent larger than on April 1 and were 40 percent larger than a year
earlier. All types of fabrics shared in the increase in orders over the pre-
vious year. A slowing down in mill sales accompanied the European crisis in
the latter part of August, according to the New York Wool Top Exchange
Service. Some mills withdrew offerings pending a clarification of the situa-
tion.

Unfilled orders for woven cloth reported by 119 mills,
July 1, 1939 with comparisons 1/

I tem : 1938 : 1939
: July 2 : April 1 : July 1
S1,000 linear yds. 1,000 linear yds. 1,000 linear yds,

Men's wear 14,281 23,470 20,574
Government 995 565 661
Other : 13,26 22,905 19,913
Women's wear 8,041 5,252 11,526
Auto cloths 2/ : ,__ 315 S34 1,824

Total 23,637 29,556 33,924

Compiled from Monthly Statistics of Wool Manufacture, published by the
National Association of Wool Manufactures. Oloth less than 50 inches wide
reported in equivalent 54-inch yardage.

1/ New series. These mills equipped with 27,000 looms.
2/ Excludes cloth with pile or Jacquard design.


a 4 m






WOOL-33


FOREIGN SITUATION

Opening sales of 1939-40 season postponed

The opening of the 1939-40 Auistralian wool selling season, originally
scheduled for August 28 was indefinitely postponed due to the international
situation.

Following the declaration of war by the United Kingdom, the Austra-
lian Government announced that the British Government will purchase the en-
tire Australian wool clip for the duration of the war, according to reports
to the New York Daily News Record. The price, which will be set by the
Government will tbe announced shortly. A central wool committee has been
appointed to direct the handling, storage, appraisal and shipping of the
wool to England and other. destinations to be designated by the British
Government.

Government control of the entire wool textile industry of the United
Kingdom announced on September 4 brought new business to a standstill,accord-
ing to reports from Bradford. A schedule .of maximum prices was to be issued
September 7, based on clean wool costs of the last London sales (July) and
current Bradfordwool top rates. No new sales or purchases can be made with-
Sout licenses.

Sales in the Buenos Aires wool market were relatively large in July
and prices advanced in the early part of the month. Stocks are reported to
be small. The new selling season in South America does not open until
October.

Wool carry-over small in South-rn Hemisphere

The carry-over of wool into the 1939-40 season in South America and
*New Zealand, which produce chiefly crossbred wools is much smaller than in
1938 and also smaller than the 5-year (1933-37) average. The carry-over at
selling centers in Australia and the Union of South Africa, the two principal
fine wool producing countries of the Southern Hemisphere, was only half as
large on June 30, 1939 as a year earlier, but was about equal to the average
June 30 stocks of the 5 years 1933-37.

Foreign mill activity high in June and July

The monthly index of wool top production in the United Kingdom, France,
Belgium, Poland and Hungary was 118.3 in June (1935 100) compared with 82.4
a year earlier. The June index was the highest since the index was first
compiled in 1935 according to statistics published in Wool Intelligence Notes.

Employment in the woolen and worsted industry of the United Kingdom
showed a further increase in July., Only 6.7 percent of insured workers in
the industry were registered as unemployed on July 10 compared with 9.1 per-
cent on June 12 and 21.4 percent in July 1938. Mill consumption of imported


"W 5 #'





woorL-33


-6-


wool in the United Kingdom in July was unofficially estimated to be larger
than at any time since 1936.

Index of wool top production in 5 European countries Ij
1935-39

Month 1935 1936 1937 1938 1939
1935 100

January 108.4 110.71- 96.2 75.7 99.0
February : 94.6 97.6 91.9 77.1 96.0
March : 98.1 106.9 98.4 92.4 115*9
April 91.0 99.0 103.3 77.9 94.0
May : 106.9 99.5 83.2 89.4 106.6
June : 94.0 79.5 107.3 82.4 1lS.3
July 106.5 92.1 92.8 85.5
August : 87.8 77.0 81.8 65.7
September 101.8 105.1 83,6 96.0
October 111.2 99.3 75-O 95.8
November : 101.4 97.8 73.0 99.3
December 98.3 104.9 81.8 96.0

Total : 100.0 97.4 88.9 86.4
Compiled from Wool Intelligence Notes, United Kingdom Im-
perial Economic Committee.
L/_ United Kingdom, France, Belgium, Poland and Hungary.

Out look

The domestic wodl situation in coming months will be influenced by
war conditions in Europe. The World War in 1914-18, which coincided with
a period of duty-free importation of wool in this country was accompanied
by marked activity in the domestic wool manufacturing industry, and a sharp
increase in imports of apparel wool into-the United States. Not imports of
such wool in 1914-16 were almost 4 tines as large as in 1911-13, and imports
continued large in 1917-18. United States exports of wool manufactures in-
creased sharply from 1914 to 1916 but declined in 1917 and 1918. No marked
advance in domestic wool prices occurred in 1914. Prices advanced moderately
in 1915 and 1916, and sharply in 1917 and 1918.

Wool production in the United States is now 50 percent larger than in
1914-18, while population has increased about 30 percent during the same
period. The domestic production, however, is not sufficient to supply the
normal domestic requirements. Wool stocks in this country at the present
time are below the 5-year (1933-37) average.






WOOL-33


The current domestic wool supply situation was summarized in the
August issue of the Wool Situation as follows.

"Mill consumption for the 12 months ended March 31,
1939 exceeded estimated production plus imports by more than
50 million pounds. Hence stocks of wool in this country at
the beginning of the 1939 season on April 1 were much small-
er than a year earlier and probably were below the 5-year
(1933-37) average. Imports of wool thus far in 1939 have
been larger than in 1938, but larger mill consumption has
more than offset the increase in imports."

"If mill consumption in the last half of the year
should equal that of 1938, the consumption for the first 9
months (April-December) of the current season would be about
equal to the estimated production of shorn and pulled wool
for 1939. Consequently, fairly large imports may be neces-
sary before the-1940 clip is available.1

United States production, imports and mill
consumption of wool, specified periods
1911-39

S : Apparel : Carpet
.: Domestic :Imports for: Mill : Imports for
Production :cornsL3.Lrption: consumption :consumption
.-1/ .. 2/ 3/ :. 2/
: Mil. lbs. Mil. Ibs. Mil. Ibs. Mil. Ibs.

1911-13 average ....; 324 75 / 104

1914 ...... .......: 294 166 84
1915 ..............: 281 307 A 93
1916 ..............i 288 364 76
1917 ..............: 277 342 ./ 73
1918 ..............: 296 378 / 676 69

1935 .............. 431 42 659 158
1936 ..............: 427 111 576 143
1937 ..............: 433 150 492 172
1938 .............. 436 31 475 72
1939 .............. 6/ 440

Imports from the Bureau of Foreign & Domestic Commerce. Mill consumption
"from the Bureau of the Census.


/ Shorn and pulled wool.
exports. e/ Greasy shorn
shorn basis. Figures for
6/ Preliminary. Includes
duction in 1938.


2/ Statistics for
and pulled basis.
1918 not available
estimate of pulled


1911-18 are imports less re-
b/ Not available. ./ Greasy
on shorn and pulled basis.
wool production equal to pro-


-7 -








The proposed purchase of the entire clip of Australia will give
the English Government control of approximately 50 percent of the wool
clip of the Southern Hemisphere. The Union of South Africa and New Zea-
land, both British Empire countries, produce an additional. 25 percent of
the Southern Hemisphere clip.

Although the exportation of wool from British Empire countries
was under strict governmental regulation as early as November 1914,
United States imports of apparel wool from such countries, as well as
from South American countries, increased rapidly in the early years of
the war (1914-16). The acquisition by the British Government of the en-
tire clips of Australia and New Zealand beginning in 1916-17 was accom-
panied by a sharp decline in United States imports from those Qountries.
Imports from South America continued to increase in 1917, but the in-
crease was not sufficient to offset the decline in imports from British
Empire countries.


Imports of combin.j and elothingl/ wool into
the United States, by country of shipment,
1914-18

Year ended June 30
Country of .
shipment 1914 1915 1916 : 1917 1918


South America
Argentina ........
Uruguay ..........:

British Empire
Australia ........
U. of So. Africa .:
New Zealand ......
United Kingdom ...
Canada ...........

All other 2/ .......

Total all countries


Million
pounds


31.3
8.0


24.0
0.5
4.7
57.5
4.8

13.1


143.9


P.illion
pounds


65.5
14.6


66.4
23.7
0.4
47.5
7.4

11.6


237.1


Million
pounds


113.3
9.2


157.5
61.9
16.7
34.3
6.5

17.0


416.4


il lion
pounds


Million
pounds


194.8 165.8
33.3.. 17.9


0.8
235.8
0.3.
1.6
8.9


S30.0
55.8
4.1
0.2
10.0


33.0 34.0..

296.5 317.8


Compil,-d from Commerce and Navigation of the United States.

/ Now classed as c-ppar-l wool.
SIncludes some South American and British Empire countries not sepa-
rately listed.


WOOL-33


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WOOL-33


3,TY
SUPPLEMENTARY DATA


Prices of wool per pound in Boston .and Londonand,prices of textile
raw materials :in the. United. States, 1931-39

Wool : TexTile fibers
Year : Boston r LoindrnL 1/ : United States
and t Territory combirE C Combing, fleeces :Wool :Cotton: Silk Rayon
month s >56 46si -6s" : 56s: .46s ..2: 3/ / ; 5
:80S: :70s : : :
S .: OCents,' Cents iGents Cents Cents Cents Cen Cents Cnt Cents Cents
Average-:
1931 63.1 49.9 3.7.9 36.7 24.1 16.3 63.1 7.90 Ao0.1 75.8
1932 : 47.0 4o.4 32.0 28.9 20.3 10.6 47.0 6.11 156.1 66.0
1933 : 67;.0" .60. 8 4,9.6 45.5 31.8 15.5 67.0. 8.36 161.2 60.9
1934 : 81.6 74.2 59.6 58.8 43.2 21.3 81.6 12.17 129.8 58.7
1935 : 74.8 63.6 51.4 52.6 36.1 19.8 74.,8 11.77 .163.3 57.3
1936 : 92.0 80.4 65.9 65.4 43.4 28.1 92.:0 11.92 176.6 58.6
1937 : 101.9 87.1 72.1 73.0 52.4 42.1 101.9 11.22 186.0 62.3
1938 70.4 .58.9 _L.52.4 :_519 36.9.6/28.6. 70.4.. s.58 .170.6 52.2
;1938 .
Jan. : 77.4 63.4 55.5 58.3 41.7 7744 8.54 156.5 59.8
7- Feb. : 70.6 .. 60.0 "51.5 5625 39.7: 30.8 ,70< ... 92. 159.2 54.0
,Mar. : 69.0o .'58.3. 51,0 '53.5 36.6. 29.3', 69,0 .8.89 .163.4 54.0
Apr. : 69.0 57.5 51.0 52.4 36.3 29.1 69.0 8.75 161.9 54.0
May : 68.0' 55.8 51.0- '5157'- 36.7 29.2 68.g 8.51 160.o 52.0
.uno : 65,0 54.0 49.0 51.6 36.2 28.4 65~0 8.39 160.9 49.0
July : 6.6 58.2 51.8 51.3 35.4 27.7 68,6 8.83 183.4 49.0
Aug. 71.2 59.4 53.0 50.3 35.6 27.7 7142 8.37 172.9 51.0
SSept. : 70.0 59.0 o 53.0 .49.5 35.8 27;5. 70i0.. 10 175.9 51.0
Oct. 71.0 59.6 -53.2 .49.7 36.5 28.3 : 710Q. ..55 185.4 51.0
Nov. : 72.8 61.4 55.0 .49.0 363 284 728, .. ..65 180.1 51.0
Dec. 71.9 59.8 54.2 48.6 36.0 27.7 71.9 8.45 180.9 51.0
1939 :
Jan.- 72.2 60.8 54.o ,46.7 35.0 25.3:" 72.2... 8.54 .190.0 51.0
Feb. 73.8 61.0 54.0 .47.8 33.2 25.1 73.8. 8.52. 211.4 51.0
Mar. : 71.8 60.1 52.8 46.9 33.2 25.1 71.8 8.64 221.8 51.0
Apr.- 69.0 57.1 50.0 .46.3 33.6 26.p 69.0. 8.51 239.3 51.0
SMay : 69.8 58.5 52.0 .45.6 34.1 26.8 69,,. 9.16 268.9 51.0
June : 70.8 59.8 53.9 46.1 34.6 29.3 70.8 9.50 253.4 51.0
July : 71.9 60.4 54.5 46.8 '35-1 31.2 71.9 9.37 264.8 51.0
Aug.. 74.0 .61..0 56 .. ..- 74.0 8.98 264.1 51.0
All wool prices are on a scoured or clean basis. Foreign prices have been con-
verted at monthly average rate of exchange reported by the Federal Reserve.
Yearly averages are averages of monthly prices.,
I/ ewe series. The'price series formerly compiled by the London office of the
Bureau of Agricultural Economics has been discontinued.- This series is based
on opening and closing'quotations for. each series of London sales, reported'in
Kreglinger and FernauLondon Sales Reports. For months when no sales were held
prices are simple averages of closing quotation in preceding month and opening
quotation in following nonth. Prices areTfirst cost, London, clean, without
oil. Statistics by months 1928-37, grades 64s-70s and 56s, published in
Agricultural Statistics, 1938, 326. / Territory fine combing stable,
scoured basis at Boston. / 7/8" Middling. Average at 10 markets.
4 Japanese white, 13-15 denier, at New York. Bureau of Labor Statistics.
/ Domestic yarn, first quality, 150 denier. Bureau of Labor Statistics.
6/ 1l-month average.





4- OQ "


United Strtes: Wool imports, consumption and machinery activity,
specified periods, 1937-39

Item 1937 1938 Jan. July : July : June : July
S i 01198 : 1939 : 1938 : 1939 : 1970


: : 1,000
Imports for consumption :pounds
actual weight: Ij
Apparel .................. 150,160
Finer than 40s .......:126,601
Not finer than 40s ..: 23,559
,Carpet, including
camels hair .......... :172,091

Consumption, scoured
basis: 2/
Weekly average-
Apparel ............... 4,772
Carpet .............: 2,023
Aggregate-
Apparel ....... ......:248,121
Carpet .......... ..105,197


1,000
pounds

30,811
18,44)3
12,369


1,000 1,000 1,000
pounds pounds pounds


44,398
30,441
13,957


2,910
1,590
1,320


11,483
7,358
4,125


71,908 20,160 85,o06


4,143.
1,225.

219,565
64,945


3,193 5,180
861 1,832

98,991 160,572
26,699 56,793


,1,000
'pounds

5.311
3,688
1,623


1,OOc
pounds

5,596
3,375
2,221


3,904 9,204 8,268


4.549
999

22,746
4,996


5,943
1,573


5,498
1, 597


23,772 27,489
6,292 7,984


Machinery activity 2/
Hours operated per
machine in place 3/
Worsted combs .......:
Worsted spindles ....:
Woolen spindles .....
Woolen and worsted
looms-
Broad ............. :
Narrow ............
Carpet & rug looms-
Broad ........... )
Narrow ..............:)


Weekly average in hours


46.1
32.9
43.1


39.0
20.4.

28.6


39.5
26.6
30.6


28.0
10.5


31.0
20.2
25.2


23.4
9.4

18.6
13.4


47.8g
36.6
37.2


39.3
10.9

34.6
22.1


46.0
26.0
31.6


52.3
39.1
40.h4


51.0
33.7
41.3


27i0 41.s 41.1
8.6 11.2 10.5

17.8 33.3 29.1
13.1 21.0 18.2


Import figures from the Bureau of


Foreign and Domestic Commerce. Consumption and


machinery activity from the Bureau of the Census.


j Weight of greasy, scoured and skin wool added together.
g/ Figures for June based on 4 weeks, July on 5 weeks, January to July 31 weeks:
1938 totals based on 53 weeks. No adjustment made for holidays.
3/ "Weekly average hours operated per machine or spindle in place" will take the
place of "percentage of maximum single shift capacity" previously reported. The
percentage of single shift capacity (40 hours) may be obtained by dividing the
above figures by 40.


WOOL-33


- -






WOOL-33


Exports of wool (greasy, scoured and washed combined)
from Australia and the Union of South Africa
for entire season, July 1 to June 30,
1937-38 and 1938-39


Country of
destination


Australia / j

1937-38 1938-39
Mil. lb. Mil. lb,


Union of South
Africa 2/:
1937-38 : 193-3 :
Mil. lb. Mil, lb.


1937-38
Mil. lb


Total
S1938-39
S .: 3/
Mil. lb.


United Kingdom
France
Germany
Italy
Belgium
Netherlands
Japan
United States
Canada
Other countries


Total
Compiled from Wool


779.9


218.4


241.0


998.3 1.q099.


Intelligence Nott.s, United Kingdom Imperial Economic Committee.


Bureau of Census and Statistics, Commonwealth of Australia.
Reports of tht South African Trade Commissioner in London.
Prc.liminary.
If any, included with "Other countries".


324.9
132,0
56.1
30.3
97.1
8.5
70.5
4.7
3.4
52.4


368.0
172.3
36.8
21.3
110.2
16.5
73.4
22.0
3.5
34.8


40.4
43.6
79.4
17.9
19.5
4/
5.1
0.5
0.4
11.6


45.9
51.2
g6.0
22.6
20.2

1.S
0.7

12.6


365.3
175.6
135.5
'48.2
116.6
8.5
75.6
5.2
3.8
64.0


413.9
223.5
122.8
43.9
130.4
16.5
75.2
22.7
3.5
47.4


--


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UNIVERSITY OF FLORIDA
3 1262 08861 5470





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