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:
AA00011232:00015

Related Items

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

Full Text
qG '

UT1ITED STATES DEPARTMEITT OF AGRICULTURE
Bureau of Agricultural Fc:'nrmics
Wa shir.gton

WOOL-34 October 11, 1939

S I-------------- ----------
THE WOOL SITUATION



US DEPOSITORY Summary
Domestic wool prices in September advanced to the highest levels

since early 1937. Principal factors in the sharp advance which followed

the outbreak of the European War, the Bureau of Agricultural Economics

reports, were the relatively small supplies of wool on hand in this coun-

try, the uncertainty of obtaining supplies from Southern Hemisphere markets

in the near future, and the increase in foreign demand for wool as a result

of war. Sales of wool on the Boston market declined in the latter part

of September but prices were generally maintained through the first week

of October.

The weekly rate of mill consumption of apparel wool in the United

States in August was 12 percent higher than in July and was the highest

rate reported since March 1937. Consumption in the first 8 months of

this year was. about 50 percent larger than in those months last year and

was almost 20 percent larger than the 8-or.nth average for the 10 years

1928-37. The building up of inventories of manufactured goods may have

been an important factor in maintaining mill consumption at recent high

levels.

In view of prospects for further improvement in business conditions

in the fall and winter months, domestic mill consumption of wool is likely

to continue at a fairly high level during the remainder of 1939.





WOOL-34


The increase in mill consumption in 1939 has been accompanied by

larger imports. Imports of apparel wool totaled 49 million pounds in

the first 8 months of 1939 ?onmpa-red with 15 million pounds in the same

months last year. Because stocks of wool in the United States are now

relatively small and mill consumption is expected to continue at a fair-

ly high level, a considerable increase in imports of apparel wool may

occur before the 1940 domestic clip becomes available.

Wool production in Australia in 1939-40 is now estimated at

1,005 million pounds, an increase of 2 percent over last year's produc-

tion. The estimated increase in production, however, is more than off-

set by a decrease in carry-over from a year earlier. Total Australian

supplies for the 1939-40 season will be about 2 percent smaller than in

1938-39 but 1 percent larger than the average for the preceding 5 sea-

sons.

Domestic Situation

Prices advance in September to highest level since 1937

Domestic wool prices advanced to the highest levels since 1937
following the outbreak of the European War in September. The relatively
small supplies of wool on hand in this country, the uncertainty of ob-
taining supplies from Southern Hemisphere countries in the near future
and the increase in foreign demand for wool as a result of war were the
principal factors in the September price increase.

Sales were large in the early part of September, but declined in
late September and the first few days of October. The September price
advances, however, were fairly well maintained through the first week
of October.

The price of fine staple combing territory wool at Boston aver-
ages $1.12 a pound, scoured basis, in the last week of September, com-
pared with 74 cents for the last week of August and a high of $1.14 a
pound in the early months of 1937. Territory 3/8 blood combing wool av-
eraged 96 cents a pound, scoured basis, in the last week of September,
61 cents in the last week of August and $1.00 a pound in early 1937.


- 2 -






WOOL-34


Country packed mixed grade lots of 3/8 and 1/4 blood bright
fleece wools sold at 47-48 cents a pound, grease basis, at Boston in the
week ended September 30 compared with 32-33 cents a month earlier. The
United States average price of wool received by farmers on September 15
was 24.3 cents a pound compared with 22 cents on August 15 and 19.1
cents on September 15, 1938. Most of 1939 domestic clip had been sold
prior to early September, and prices received by farmers as of September
15 did not reflect fully the sharp rise in market prices for wools dur-
ing the first 2 weeks of September.

Wool imports continue larger than in 1938

United States imports for consumption of apparel wool totaled 4.6
million pounds in August compared with 5.6 million pounds in July and
3.2 million pounds in August 1938. Imports of apparel wool totaled 49
million pounds in the first 8 months of 1959 compared with 15 million
pounds in the same months of 1938 when domestic mill consumption was at
a low level. Imports averaged about 58 million pounds for those months
in the 5 years, 1933-37.

Because stocks of wool in the United States are now relatively
small and mill consumption is expected to continue at a fairly high lev-
el, a considerable increase in imports of apparel wool may occur before
the 1940 domestic clip becomes available.

Imports for consumption of carpet wool totaled 97 million pounds
in the first 8 months of 1939 compared with 27 million pounds in the
same months of 1938 and an average of 90 million pounds for those months
in the 5 years, 1933-37. The sharp increase in imports compared with
1938 reflects the increase in domestic mill consumption thus far in 1939.

Receipts by grade and origin

More than one-third of arrivals of foreign apparel wool at United
States ports in the first 8 months of 1939 were fine wools from Austra-
lia. Wools "not finer than 40s" imported chiefly from Argentina consti-
tuted the second largest item in imports classified by grade and origin.
Total receipts of foreign apparel wool at 5 important United States
ports in the first 8 months of this year are shown by origin and grade
groups in the accompanying table. Such receipts include wool imported
for immediate consumption plus wool entered into bonded warehouses for
later disposal and are not comparable with statistics of imports for
consumption given above.





WOOI-34


- 4-


Receipts of foreign a-Tarcl wool at Boston, New York and
Philadelpnhia, by origin and grade, January
through August 1939 1/

:Not finer: s to : 46s to : Finer :
Origin :than 40s : 4 56s : than : Total
: 2/ : : : 56s :
:1,000 lb. 1,000 lb. 1,000 lb. 1,000 lb. 1.000 lb.

Argentina ..........: 12,542 308 897 330 14,077
Australia .........: 138 1 50 18,543 18 ,732
Canada ............: 109 104 341 63 617
Great Britain and :
Ireland .......: 789 156 942 161 2,048
New Zealand ........: 3,173 1,863 2,449 13 7,498
South Africa ......: --. 3 660 663
Uruguay ...........: 685 1,606 3,392 389 6,072
All other ..........: 834 53 571 45 1,503

Total ............ 18,270 4,091 8,645 20,204 51.210
Statistics compiled by the Boston office of Agricultural Marketing
Service from importers' declarations.
I Includes subports of Massachusetts and other New England ports.
2/ Apparel class wool "not finer than 4Os" may be imported free of duty
if used for floor coverings, press cloths, knit or felt boots, or heavy
filled lumbermen's socks. In the last 5 years about one-fifth of the im-
ports of such wool have been duty free.

Mill consumption increases seasonally in August

The weekly rate of mill consumption of apparel wool in the United
States was 6,177,000 pounds, scoured basis, in August compared with 5,498,000
po-nizr in July. The increase in consumption in August was slightly larger
than the average increase from July to August in the last 10 years. The
Ai-Li:- rate of consumption was 7 percent higher than that of August 1938 and
was the highest rate reported since March 1937-

Domestic mill consumption on a grease basis, in the first 8 months of
this year was equivalent to 343 million pounds of shorn wool and 53 million
pounds of pulled wool. The consumption from January through Ar.gust was about
50 percent larger than in those months last year and was almost 20 percent
larger than the 8-month av.'r".-o for the 10 years 1928-37.

While mill consumption has been large in the last year, consumption
had declined to a low level in late 1937 end the first half of 1938 -nd stocks
of semi-nanufacturod and manufactured goods wore greatly reduced. The build-
ing up of inventories of such _-oods probably has boon an important factor in
maintaining mill consur.mtion at recent high levels. In view of prospects
for a further improvement in business conditions in the fall and winter months,
mill consumption of wool is likely to continue at a fairly high level during
the remaining months of 1939.






OOI-34 5-

Donestic supplies below .v' ia'.e

On Sqptomnbr 1 total stocks of wool in theJrLited Statos were much
smaller than a year earlier and below the 5-year (.1933-37) average. Mill
cons-unption of apparel wool in the 12 months ended March 31, 1939 exceeded
domestic production and imports by more than 50 million pro.unds. Stocks of
apparel wool in the United States at the beginning of the 1939 season on
April 1 were nuch smaller than a year earlier, Inports of wool front April
through August 1939 were larger than in the corresponding months of 1938,
but the increase in nill consumption was greater than the increase in in-
ports.

Production, imports and nill consumption of apparel wool,
grease basis, in the United States, annual 1935-38,
and April to August 1938 and 1939


Year beginning :Production ; General inports:Mill consumption
April 1 : : :
: Mil. lb. Mil. lb. Mil. lb.

1935-36 ........... 431 3 2/ 673
1936-37 ... *......*: 427 164 582
1937-38 ........ .. 433 60 407
1938-39 ........... : 436 49 3/ 544

Apr.-Aug. 1938 ....: 4536 7 189
" 1939 ....: 440 30 247

Imports from the Burocau of Foreign and Donostic Comrerce. Consumption
front the Bureau of the Census.
_/ Weight as reported, greasy, scoured and skin wool added together.
2/ Stocks of apparel wool in the United States were large at the be-
ginning of 1935.
/ bureau of the Census figure adjusted to 52-week basis.
Production for entire year. Figure for 1939 includes pulled wool
estin.at equal- to -1938 production of pulled wool ..

Foreign Situation

South Africa wool sales

The first sales of the 1939-40 wool selling season in the Southern
Hemisphere were held in the Union of South Africa in the first week of
October. Prices of warp 64s wool at Port'Elizabeth were on the basis of
about $1.00 a pound, clean basis, duty paid, landed at Boston, according
to reports to the Boston Conmercial Bulletin. French combing 10-12 months -
wools wore quoted at 96-98 cents, on a similar basis. It is reported that
Anerican representatives bought fairly large quantities of wool at the sales.
It was stated that sales would. continue through October.






It has boon announced that the British Govornnont will purchase
a considerable percentrc of the 1939-40 South African clip at a price
approxinatin: the price to be paid by that Governnont for Australian wool.
English buyers took about ono-fifth of the wool exported front the Union
of South Africa in the 1938-39 season.

The barter agreoenrt with Gcruany for the 1939-40 season has been
cancelled by the South African Government. In the last two seasons about
36 percent of the total exports from the Union of South Africa wont to
GErrniv-. as a consequence of the clearing xarrngonent between the two Govern-
nents.

Wool production in the Union of South Africa in 1939-40 is likely
to be front 3 to 6 percent larger than that of 1938-39 according to-a re-
liable connorcial source. The 1938-39 production was estimated at 248
million pounds.

Prices higher in South Aaorican markets

The strong demand for crossbred wools in recent months resulted in
an excellent clearance of the 1938-39 clip in Argentina and Uru-uny. The
wool markets were seasonally quiet in August but in September a strong de-
nand was reported on' such wools as were available. Reports to commercial
firns after the middle of Septomber indicated that prices of wool cere 40
to 50 percent higher than prices quoted in August. United States buyers
were reported to be buying actively.

The now season in South America opened officially on October 1 but
new clip wool is not usually available in any considerable quantity before
Novenb or.

1938-39 South American exports largcst in recent -;rars

ExT-orts front Ar7gentin'. and Uruguay for the first 11 months (October-
August) of the 1938-39 season wore 33 percent larger than in the sane months
of the previous season and wore larger than exports in any recent year. Ex
ports front Aer entin- for the 11 months through August were 30 percent above
the corresponding period of 1937-38 while exports front Urug ny were 41 pcr-
cent larj,-r.

Wool exports front Argentina and Uruguay, specified periods, 1932-39

Year bcginin : Argentina / : Uruguay Total
October 1 __ :
i Mil. lb. Mil. b. Mil. lb.
1932-33 ............. 356.0 115.0 471.0
1933-34 .............: 283.3 95-3 378.6
1934-35 .............: 328.4 118.9 47.3
1935-36 .............: 303.0 14.1 417.1
1936-37 .............: 314.5 121.7 436.2
1937-38 .............: 291.7 92.7 384.4
Oct.-Aug.(1l months) :
1937-38 ............. 279.4 87.4 366.8
1938-39 2/ ..........: 364.6 123.0 .7.6_
Ar,-entina: Official estimates from Argentine Bureau of Stntistics.
Uru~uay: Conrercial estimates supplied by the Buenos Aires office of the
U. S. Foreign Service.
I Scoured and washed wool converted to a grease basis, 2J Prelininary.


wTOO-34


- 6 -






WOOL-34


Larger Australian wool production in 1939-40

Wool production in Australia in 1939-40 is now estimated at 1,005 mil-
lion pounds according to the Imperial Economic Committee of the United Kinckr'.
This estimate is based on an indicated increase of 2 percent in production in
1939-40 compared with 1938-39. Revised estimates of the Australian Bureau of
Census and Statistics plhce the 1938-39 production at 985 million pounds and
production in 1937-38 at 1,023 million.

The estimated increase in production in Australia is more than offset by
a decrease in carry-over from a year earlier. Available supplies for the 1939-
40 season will be about 2 percent smaller than for the 1938-39 season but 1 per-
cent larger than the average for the preceding 5 seasons. As reported in the
September Wool Situation, the British Government will purchase the entire
Australian clip for 1939-40. Private sales of wool and wool tops are pro-
hibited.

Australia: Wool production, carry-ovor at selling centers and
supply for disposal, 1933-39

Season beginning Carry-over at .
July 1 Production sllng cntrs Supply for disposal

: Mil.. lb. Mi. b. Mil, lb.

1933...............: .996 13 1,009
1934..............: 1,015 64 1,079
1935................: 971 28 999
1936...............: 983 23 1,006
1937................: 1,023 14 1,037
Avorago..........: 998 28 1,026
1938 /. ............: 985 71 1,056
1939 /............: 1,005 34 1,039

Compiled from official sources and reports of the National Council of Wool
Selling Brokers.
I/ Preliminary.


-7-







WOOL-34


Prices of wool and toxtilo raw materials in the United States,
specified periods, 1937-39


.Average. 1939
Item ---: High: 1938 :-
:1937 .1938 1937 :*Sept.: July u Aug. Sept.
Set


Boston market
Torritory, scoured basis
64s,70s,80s (fine) staplo.:
56s (3/8 blood) combing...:
46s (Low 1/4 blood)........
Bright fleece, groasy
64s,70s,80s (fine) dolaino:
56s (3/8 blood) combing...:
46s (Low 1/4 blood)......,:

Farm price, greasy
15th cf month................

Textile fibers
Wool, Torr. fine staple /*..:
Cotton 7/8 Middling 2/......
Sik, Japanco z ...........
Rayon yarn, l,,3 denier 4/...


Cents Cents


101.9
87.1
72,.1


40.9
43,7
39.7


70.4
58.9
52.4

29.0
29.5
28.3


32.0 19.1


101.9
11.22
186.0
62.2


70.4
8.58
170.6
52.2


Cents Cents


114.0
100.5
84.0

47.0
53.0
47.0


70.0
59.0
53.0

30.0
30.5
30.0


Cents


71.9
60.4
54.5

29.5
32.1
31.5


33.2 19.1 21.8


114.0
14.15
205.1
63.0


Cents


74.0
61.0
56.0

29.5
32.5
32.5


70.0 71.9 74.0
8.10 9.37 8.98
175.9 264.8 264.1
51.0 51.0 51.0


Yacrly averages are averages of monthly prices except United States farm price
w ._ch is a wqichted' average.
1/ Scoured'banis, Boston market,
SAverage at 10 markets.
SWhite 13-15 denier, at New York, Bureau of Lab6r Statistics.
4/ Domestic yarn, first quality, Bureau of Labor Statistics.


89.8
84.9
76.1

39.5
43.8
41.9


22.0 24.3


98.8
8,88
299.3
51.5


-- 8. -




WOOL-34


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


Item 1937
:1,000
Imports for consumrmtion :pounds
actual weight: 1/ :
Apparel................,:150,160
Finer than 40s........ :126,601
Not finer than 40s....: 23,559
Carpet, including
camels hair...........:172,091


1933 : Jan. Ag. : Aug. : July : Aug.
: 1933 : 1939 : 193 9 : 139 : 1939
L,000 1,000 1,000 1,000 1,000 1,000
pounds pounds pounds pounds pounds pounds


30,811
18,443
12,369


14,685
8,740
5,945


49,00o
33,735
15,273


71,908 26,560 96,906


3,202
1,382
1,820

6,399


5,596
3,375
2,221


4,610
3.294
1,516


8,268 11,901


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


4,143
1,225

219,565
64,945


3,489
935

122,127
32,724


5,294
1,897


5,784
1,506


185,279 23,136
66,397 6,025


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


46.1
32.9
43.1


39.0
20.4

28.6


39.5
26.6
30.6


33.8
21.6
27.0


28.0 24.6
10.5 9.7


48.6
36.7
37.9


55.8
32.3
40.6


39.3 34.3
11.1 11*7


18.8 19.3 35.0 24.7
13.9 22.0 17.4


51.0
33.7
41 3


41.1
10.5


54.8
37.2
43.1


39.7
12.3


Import figures from the Bureau of Foreign and Domestic Commerce. Consumption and
machinery activity from the Bureau of the Census.

1/ Weight of greasy, scoured and skin wool added together.
2Figures for August based on 4 weeks, July on 5 weeks, January to August, 35
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.


5,49g
1,597

27,489
7,984


6,177
2,401

24,707
9,6o4


29.1 38.0
18.2 22.8


- 9 -




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