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:
AA00011232:00028

Related Items

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

Full Text











--V- SITUATION

BUREAU OF AGRICULTURAL ECONOMICS
UNITED STATES DEPARTMENT OF AGRICULTURE

6 NOVEMBER 1940
--------W ------------


D8C E T PT UN

, ,. -_ L ~' WO


U.S. DEPOSITORY ,o0





200

0
aoo
1600


1.400


1 200


1000


800


600


400


OL PRODUCTION IN PRINCIPAL SOUTHERN HEMISPHERE
EXPORTING COUNTRIES. 1930-39 GREASE BASIS I

MEDIUM AND COARSE WOOL PREDOMINATES
SArgenrna" Urugai [ floj Z.anaJ _


MOST OF THE APPAREL WOOL ENTERING INTERNATIONAL TRADE IS
PRODUCED IN AUSTRALIA, NEW ZEALAND, THE UNION OF SOuTH AFRICA,
ARGENTINA, AND URUGUAY. LARGE QUANTITIES OF WOOL FROM THESE
COUNTRIES WERE SHIPPED TO CONT I.ENTAL EUROPEAN COUNTRIES BEFORE
THE PRESENT WAR. BUT SO LONG AS THE BRITISH BLOCKADE OF THE
EUROPEAN CONTINENT CONTINUES, THE UNITED KINGDOM, THE UNITED
STATES, AND JAPAN WILL BE THE OhLY IMPORTANT OUTLETS FOR EXPORTS
OF WOOL FROM THE SOUTHEPN HEMISPHERE.


THE


WOOL 47


951 ijg? iejs rssd IJ~s Isd Is,~ Irji
'IC r~ii *II*I: .Lr


u I -L.I.I.m1 .: I Qi,-;uu-i


-i 1. 1. u 1 A i. *':. ii-uoI. i ,j 5- -i1


:a~~

1




WOi 47


THE WOOL SITUATION
~~-~----c-----c------------

Summary

Mill consumption of apparel wool during the remainder of the current

wool season, up to April 1, 1941, will be conci-erably greater than in the

corresponding period a year earlier. -This increase in consumot ion will re-

flect chiefly the large Army contracts for wool goods awarded in recent

months.

The- increase in mill consumption will be .accom-nanid by a large in-

crease in imports Iuring the coming winter and spring. Large purchases of

wool in Argentina and Uruguay have been made recently by United States buvy-

ers. Wool produced in these two countries, however, is c'iefly medium and

coarse wools, whereas United States requirements in t-he n,.xt several months

will be for relatively large quantities of fine woole. A consideratle vol-

ume of wool imports from the Union of South Africs anLd Australia, therefore,

is expected, since Australian and South African production is mostly of fine

wools.

For the entire year 1941, domestic mill consu.!Jmniion of wool probably

will be larger than in 1940, and further increases in innorts m~y occur.

The high level of mill consumption in prospect for ncxt year will be an i-

portant supporting factor to prices of wool from t!le 1-"'L1 clir iL the United

States.

Prices of most sr:cles of domestic wool at Boaton advanced 7 to 14

cents a pound, scour-. basis, in October. Buying of wool to fill new Gov-

ernment orders, and a scarcity of offerings of fine domestic rool available

for immediate delivery were iLoortant factors in the price advance.

United States imports for con-na-tIon-of apparel wool in the first 9

months of this year totaled 133 million rounds. Such imports were more than


- 2 -





woOL-47


- 3 -


twice as large as imports in the same months last year, and the total for

the calendar year 1940 probably will be much larger than in any recent year.

Consumption of apparel wool by United States mills in September was

more than twice as large as in April the low point of this year and was

14 percent larger than in September 1939. Consumption on a secured basis in

the first 9 months of this year was 4 percent smaller than in the same months

last year. In view of the high level of consumption in prospect for the

final quarter of the year, it is likely that consumption in 1940 will be

close to the 1939 total.

The supply of wool available in South America in the 1940-41 season

probably will be somewhat larger than in the 1939-40 season. The prospective

increase in supplies is the result of a larger carry-over of wool on

October 1, 1940. No material change in production is in prospect, according

to preliminary estimates for Argentina and Uruguay.

November 12, 1940

REVIEW OF RECENT DEVELOPMENTS

PAACKGROUND.- Prices of wool in the United States rose sharply
following the outbreak of the European war in September 1939.
This rise was brought about by the prospects for a strong war
demand for wool in certain foreign countries and the small
stocks and relatively high mill consumption of- raw wool in the
United States. Mill consumption was reduced after October 1939,
ard prices declined moderately during the first half of 1940.

Wool imports were relatively large in the latter part
of 1939 and in 1940, but stocks in this country remained
smaller than the average stocks of recent years. Wool goods
purchasing begun by the Government in June under the program
for national defense resulted in a rapid increase in mill con-
suijption of wool 'in this country, and prices turned upward.

Prices of domestic wool rise
sharply in October

Prices of most grades of domestic wool at Boston advanced 7 to 14
cents a round, scoured basis, in October. Buying of wool to cover new
Government proposals announced early in the month, and a scarcity of offerings
of fine domestic wool available for immediate delivery were important factors
in the nrice advance.






Boston quotations on Fraded fine combine (staple) territory wools
averaged $1.08 a pound, scoured basis, in the week ended November 2 com-
pared with 95 cents a pound at.-the- end of Sentember. Prices of combing
3/8 blood territory wool avere.aed 88.5 cents a -ound in the week ended
November 2 and 80 cents a nound at the end of September. Country packed
lots of 3/8 and 1/4 blood bright fleece wools sold at 45-46 cents a pound,
grease basis, at'the end of October, compared with 40 cents a pound at
the end of September. Prices of fine and half-blood domestic wools at
Boston at the end of October were slightly higher than a year earlier but
prices of 3/8 blood and coarser grades of wool -ere lower than in late
October 1939.

Wool tops

The near-capacity booking of commission comber. for the remainder
of the year and the relatively short supply of fine domestic wools avail-
able for current orders contributed to a strong. domestic top situation,
according to re-orts of the Agricultural Marketing Service. Avwra-e length
oil combed 64s tops made entirely of domestic wool sold for $1.37-$l1.0 at
Boston at the end of October. Similar grade and length tops made of South
American wools were sold at S1.20-$1.25 for delivery before the end of the
year, and at $1.15-$1.18 for later delivery. Similar tops of Australian
wool, to be delivered after the turn of the year, :.ere offered at about
$1.20 a pound.

Boston wool auctions in October 1/

Western grown wools were offcr.-d at auction in Foston during four
consecutive days, including October 15 to 18, _',n'. In this four-day series
of wool auctions in Boston, a total of 4,608,925 pounds of western wools
was offered, and 4,314,875 oour.i- were sold. Molt of the %wools offered in
Boston had been offered at auction and were not sold last suumrer in the
series held July 22 to Aulit 3 in Denver, Colorrd--; Ogden, Utah: and
Billings and Miles City, Iontana. Grease basis prices on many of the lots
sold in Boston were six to eight cents above the highest bids on the sr.me
lots offered at auctions in the Wezt during the sunr.er series.

The catalog of offerings of western wools in Boston w'as divided into
thre- sections: Ogden, Denver, and Montana. Erach r-ction comprised the
wools stored at each of the three western points. The O:-en section in-
cluded the wools stored at Ogden, Utah; the Denver section ii.cluded wools
stored at Denver, Colorado; and the Montana section inclu'dccd '-ools stored
mostly at Billin.e, "rontana. Only sample bags of each lot -.ff-?red were
brought to Boston. Each nmornin- during the days on which the auctions were
held, sample bags of the lots to be offered on that dr,-, i-ere made available
for examination by the buyers. The sample ba4se vere laid rnut on the floors
of one of the large wool warehouses in Boston and bu.iyers could examine
these bags of wool to make their estimates of P-rnde, length, shrinkage, and
any other characteristics vyhich buyers usually consider.


"' / From AgriciIlturnl Marketing Service Review of the Bos,ton Wool Auctions,
October 23, 1940.


..- -


WOOL-47




WOOL- 7 5- -

offerings of wools from each of the western cities included original
bag as well as graded lines, A summary of offerings by cities where wools
were stored is shown in the following table:

Wools offered and sold at Boston auction, October 13-18, 1940

Description :- Tota4 : Ogden Denver : Billings
:DescipOffered: Sold :Offered: Sold :Offered: Sold :Offered: Sold
: 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
: pounds pounds pounds pounds pounds pounds' pounds pounds


Grand total ..: 4,609
Original bag .: 2,927
Graded wools:
Fine .....'.. 764
1/2 blood ..: 230
3/8 blood ..: 505
1/4 blood ..: 167
Miscellaneous : 16


4,315
2,758

764
230
44 3
105
16


1,806
1,03.8

201
107
331
118
11


1,673
1,030

201
107
269
55
11


2,373 2,212
1,725 1,564


349
122
135
41
1


349
122
135
41
I


Scoured basis prices at the Boston wool auctions were in line with the
scoured basis prices prevailing at the time in Boston. Fine wools, graded
and in original bags, brought around $1.03-$1.08, scoured basis, for good
French combing length; around .97-$1.02, scoured basis, for short to average
French combing length; and 92-95 cents, scoured basis, for clothing prices
being estimated cost delivered Boston. Half-blood wools brought mostly
.97-$1.02, scoured basis, for good French combing wools, and 92-95 cents for
short French combing and clothing. Combing 3/8 blood brought 83-90 cents,
while 1/4 blood wools were sold at mostly 78-83 cents., scoured basis, de-
livered Eoston.

Bidding on the good lots was keen throughout the series, but draggy
on inferior 'ools, or on wools of extremely heavy'shrinkages. 'Worsted manu-
facturers, t-pmakers, and wool dealers participated'in the'buying. A summary
of veightd averages and ranges of prices of dools'sold from each section is
shownL in the following table:


Prices of wools sold at Boston auctions, Odtober1l3-1g, 1940

: Ogden 1/ : Denver1/ : Billings 1/
Description :Weighted: -:Weighted: :: :Weighted:
Range .1.ange Range
average: .:: average: av : average:
: Cents Cents Cents Cnts Cents- Cents
Original bg ....* 32.0 28.0-39.2 31.3 22.5-40.2 4.4 30.039.2


Graded wools:
Fine ..........
1/2 blood .....:
3/2 blood .....:
1/4 blood .....:
Low 1/4 blood .:
Scoured wool ....:
Mothy wool......:
Black wool ......:


30.9
32.7
34.2
35.4
34.5
l/
3'/
3/


28.5-33-8
32.0-34.8
33.0-36.2
34.o-37.2
2/
3/

./


32-3:
35.0..
35.6:
36.2:
/92.0
92.0
1/
.3.


23.5-37.8
26.0-39..2
33.0-40.0
33.5-41.o


2/
if


36.3
32.5
36.3

3/.

27.5
23.0


30.2-37.0
. 2/
34.0-36.8
3.o0-39.o


3/


.1 Prices F.O.B. cars at point vf storage. 2 Only one lot offered.
D/ None offered.


430
164

214
1
4o

4


430
164

214
1
4o

4






WooL-..47


Dealers and manufacturers stocks
relatively small on September 28

Stocks of apparel wool reported by dealers and manufacturers totaled
263 million -ounds, grease basis, on Sentember 28 compared r-ith 245 million
pounds a year earlier, according to reports of the Bureau of the Census.
The stocks reported on September 28 included 2r million pounds of wool afloat
to the United States. If wool afloat is excluded, the stoc'-s hrld by dealers
and manufacturers on September 28 totaled 243 million pounds compared with
237 million pounds a year earlier and a Sentembcr 3' average of about 286
million pounds in the 5 years 1935-39. These firires do not include wool
on farms and ranches and in local warehouses in producing States.

Stocks of carpet wool reported by dealers and manufacturers, includ-
ing wool afloat, totaled 54 million pounds on Ser-tcmb.r 28, the same 7s a
year earlier. September 30 stocks of carrDot '-ool .vCra~-d C million pounds
in the 5 years 1935-39. Stocks of apparel and carrot wool reported by
quarters, 1935 to date, are shown on a grease basis in t-ble 2. The
accompanying table shows stocks reported by dealers and manufacturers on
September 28 this year with comparisons, on a scoured ecn.ivalent basis.

Stocks of raw wool, tops, and noils held by dewle-rs, manufr.cturers and
topmakers, United States, September 28, 1940 ,'ith comparisons

: Scoured b.sis
Item : 1939 : q14
: Sept. 30 1/ : June 29 T : Sept. 28
:1,000 pounds 1,00i0 nunds 1,000 pounds

Apparel wool, total .........: 118,514 12F,585 127,423
Dealers .................: 41,673 6,2 52,784
Domestic ...............: 33,954 4P,025 79,152
Foreign on hand .........: 6,456 10 ,3-82 9,208
Foreign afloat ..........: 1,263 1,24 4,424
Manufacturers and topmakers: 76,841 6J~, 24 74,639
Domestic ...............: 55,507 46,59c4 47,427
Foreign on hand .........: 17,547 19.711 19.364
Foreign afloat .........: 3,787 1,9 7,848

Carpet wool, total ..........: 37,411 46,244 40,085
Dealers .................: 1,271 2,. 8, 1,114
Manufacturers ............ 36,14o 4,6U, 38,971

Tops ........ ... ..........: 19,894 22,n46 20,913

Noils .......................: 8,896 10,s86 10,880


Compiled from srerau of the Cen-mrs Quarterly Wool Stock Rcoort,
September 28, 1940.
IJ Revised.


- 6 -





VTOOL-47 7 -

Reserve of British-owned wool to be
stored in the United States

Tlte latirtr.al Defense Advisory Commission announced in October that
arrangermntZr have been mace to bring an emergency reserve supply of 250
million pounds, grease basis, of British-owned Australian wool to the
United states for Stora'e in bond. w'ool is defined as a critical material
by- the Army and Ns.v munitionss Board. As such, it became necessary for the
Commission to arrange for an adequate reserve as it has done in cases involv-
ine other critical materials.

Own.ership of the -jool to be stored will remain with the British Govern-
rhent. The woo 7l rmrt' not enter the market without the approval of appropriate
America-n officials. ilo withdrawal will be possible except where deficiencies
appear in the- supply of acmestic wool or where normal imports are interrupted.

At. th- termination of the emer.enc., the United States and British
Gove rnnrrnts i.ill d1-_ riterTine the ultimate disposal of the reserve.

A-arel wool imorort7 increase
in Se rt e'nbe r

Ac.are-l wool i.mrorts for consumption 2/ totaled 15.2 million pounds
in September cc.npar..d iith 9.9 million pounds in August and 12 million pounds
in Se-terrber 193'. Irnp:r-ts in the first 9 months of this year, totaling
133 million pcuns.s4, irere more than twice as large as in the same period a year
earlier. Lipc.rt for th,. calendar year 1940 probably will be substantially
larger than the 1511, million pounds imported in 1937. The 1937 imports were
the iar.gest in r cent iyr's. Imports for consumption of carpet wool in the
first. 9 months of this ,.-ar totaled 101 million pounds compared with 114
million pcunas import..d ir: the same months of last year and a 5-year (1934-38)
average for those-nmnths cf 94 million pounds.

Th- ir..:reras:. in sportss of apparel wool in the first 9 months of this
year cc.mp:are.:. ith the same months of 1939 was largely in medium and fine
wools. Imports of wo-ols grading 36s to 44s inclusive from January through
September of this :,ar ie'r-e smaller than in the same months last year. Im-
ports for consurrption 'i;, grade groups are shown in the accompanying table.

Apparel wool: Imports for consumption by grades, United States, January-
ont-mber 1939-40 and September 1940

So ,.esr : Jan.-Sept. : Sept.
1939 : 1940 : 1940
: 1,000 pounds 1,000 pounds 1,000 pounds

Fin.r then 56s ..... 25,297 85,504 10,211
46s 56s ..........: 11,421 26,999 2,615
44s ................: 5,440 4,619 493
!!ot fin-r than 40s .: 18,891 15,796 1,875
Total a-pare.l .. 61,049 132,918 15,194
Compiled from official re-cords of the Bureau of Foreign and Domestic Commerce.

2 ''!ool entered for immediate consumption plus wool withdrawn from bonded ware-
houses for consu-mition.




;0OOL-47


S-epte-nber mill con-iumr-tion twice as
large as at low; j-oInt in pr"'l

Weckl'T av~r-,g- mill consumption of a-p!..-:l vo:l in S:tecmber was
7,152,000 pounds, scoured basis. Th rite ,.:f ccnsumptior inL September was
15 percent higher than in Aui-ut and it wras 1 prrc:-nt hign,:r than in
Scur.,tbber 1939. Mill consumption of a}par.l .jool tas .nore than doubled since
April the low point of this year. Jjil. cnnsLrumption fro:n J-nuary through
September of this year was equivalent to 41.1i milli,:.n poundsgreasy shorn and
r.- .s: pulled. In the sane months of lat year consumption on a grease basis
totaled 451 million pounds. Mill consu-iption cf carpet wool increased some-
what in September but the consumption was st-all,:r than in C.cpt mber last year.

.;i Government orders in October

The United States Arry in Octolbr awarJ..i contracts for 2,200,003
blankets, 7,000,000 yardsof 18 oz. serg:, 75',0'l'.-0 yards of 1 oz. elistique
cloth, and 8,515,000 yards of flannel s'hirtirg. Deiiv.ry, of srgS, elastique,
and shirting contracts awarded on October 2, is. tj c gin -as socn as possible;
not less than 20 percent of deliveries in'isr. be r '-..e it hin 60 da'-s of award.
Delivery is to be made as rapidly as rossiblc ..nd must be completed within
195 to 240 days of award.

Are._nt.in wool production down ll-htly, in
'191-41. Tc:.L ':'.p il s reitivt.Vx -rc'-

Production of wool in Argentin- f.ir :I.he 1'-:'-1 :ca.son is expected to
be about 397 million pounds, according t:.. esti-rt..r f tLh' Pu.-nc3o Aires Brsnch
of the First National Bank of Boston. Ti:. i- 7 i. rresc of 2 percent from
the Bank's revised estimate of 403 mi.Lli'.- r.cjrd: fl r Li-: 1939-,10 clip, but
is about equal to i:r..Du..c;.i-n in 1938-3.'. r''d::ctic. sinc,- i',3E has been some-
what larger than in earlier years. Av:r-.7 :rc: uctio.n in Argentina for the
five seasons 1934-35 thrcu(A.- 1938-39 w?- 377,' million rounds.

The carry-over of wool at the cl.os. of th:. 13'7-40 s.ascn (Oct. 1, 1940)
is estimated by the First National Barnk -t F- aillic-n rounds, and mill con-
suiption in Ar-'rntina is expected to t'trl 66 millionn pounds. H"-nce, supplies
available for export in the current s?.scrn il t.ctal about 415 j.illion pounds,
grease basis. The supply available fcr the 1?40-;1 sascrn is so,:e-wh--t larger
than that of the previous season, as a result cf th.: r'nltiv:ly il.rge ca.rry-
over on October 1.

[i._ material chian. exnocted in
Uri'u -i production

There is no official estimate cf Ll, Uruuiay clip- but production is not
expected to differ materially fro'n the 13'- .r,-.cuctio..r, i.'hich was estimated
at 122 million pounds. As rci~orted in th.: Oct:'.b -r lin-l Situation, unsold
stocks of wool in Uruguay near the clcosa -.f th 1939-4:' sr.s':n ;wer, estimated
at 7 til1-n pounds and in addition th,-re r,.jin.:d 12 to 14 million pounds of
wool contracted for by 3.iri.op. n countri-'f nd sh:iiting shipm,.nt. Such wool
aiL4.t be available for resale if tr-nsn:,rt-ti:n to SurDpo fails.








United States buyers active -an South
A-erican mari
UInited States buyers purchased relatively large quantities of fine
(merino) and fine and medium crossbred wools in Argentina and Uruguay in
October, the firzt month of the 1940-41 season. Japan also made small
purchases in C'tober. -'E:: orts to the United States from Argentina in the
five weeks en,:.ed October 31 totaled about 35 million pounds, according to
preliminary- reports. Exports to all other countries for the same period
totaled 1l3c th-n 2 million pounds. A considerable part of the-October
purchases consisted of wools carried over from the 1939-40 season. October
arrivals of rnew clip wools were relatively smail'. Purchases also were made
in October oif ne. clip wools to be delivered in November, December and
J-.n usry. Co0 L:rcial sources' estimated late in October that about 22 million
pouns- of tL- i'4L0-41 clip in Uruguay had been contracted for by United
States bu-,yrs, -and about 3 million pounds hadh been purchased by Japan, Sweden,
and Mexico. i.ol prices advanced in South American markets in October.

South A;erica-i ccl exports below
aver;~s in 193'-? season

x::orts, .:i wool from Argentina and Uruguay in the year ended September
30, 1?90. tot-J.-j 38 million"pounds, greasy and scoured'combined, compared
with L?.S5 nilioin pounds exported in the previous season and a 5-year (1935-39)
average of 2','i .ilion pounds. The United States took about 176 million
pounds of iuc.o fr. m Argentina and Uruguay in 1939-40, about 45 percent of
the season' r hirnents from those countries. Shipments- to the United States
ivere much i..r-:--r than in any recent year. Exports from Argentina and Uruguay
by country._, of destination, 1934-39, are shown in tables 4 and 5. Shipments
for Argentina b.- principal classes are shown. on a grease equivalent basis in
the ?ccc.'np~n in table.


:VOOL-47


- 9 -





0oL-47 10 -

Argentina: Exports of wool by classes,
average 1934-38, annual 1937-39

_____ Year beginning October 1
: AveraF-e :
Class : 1934-35 197-38 1938-39 1939-40 1/
to -
: 1938-39 : _
: 1,000 1,000 1,000 1,000
p: urds pounds mounds pounds
Grease wool:
Fine (Merino) .............: 25,188 29,859 24,930 15,626
Crossbred
Fine .................... 87,970 89,269 95,045 52,776
Medium ................. 25,293 23,585 29,720 28,964
Low ..................... 95,054 75,058 130,398 85,408
Crioelo or native ......... 8,576 5,633 10,745 15,247
Belly wool ................: 12,008 ,901 14,753 7.68
Total grease wool ,...: 254,089 233.305 295,591 205,889
Pulled wool, grease
equivalent 2/ .............: 20,664 18,964 25,379 27,469
Scoured wool, grease
equivalent 3/ .............: 47,262 40,950 54,454 74,862

Total all wool on
grease basis .......: 322,015 293,219 375,424 308,220

Argentine Bureau of Statistics. Pulled and scoured wool not reported by
classes.
1/ Preliminary.
2/ Assuming 15 percent shrinkage.
3/ Assuming 35 percent shrinkage.

UNITED STATES WOOL SUPPLIES AND ARMY ORDERS FOR WOOL GOODS

Large orders for wool materials have been placed by the United States
Government in the past 5 months as a part of the program for National Defense.
Complete figures for Government orders for goods requiring wool in their manu-
facture have not been compiled, but requirements for Army contracts awarded
from June through October are estimated to total about 160 million pounds of
grease wool. This figure includes estimates for all the large contracts
awarded by the United States Army, but it does not include some small orders
or contracts awarded by other Government Agencics, including the Navy.

The accompanying table gives the grease and scoured equivalent of wool
required for the principal Army contracts awarded from June through October
1940. Estimates of requirements for these orders by grades also arc shown in
the table. It will be noted that the orders are chiefly for fine wools.
Until recently only wools produced in the United States could be used for the
manufacture of materials for the Army, but the War Department announced on
November 6 that the Arm;, would hereafter buy materials made from both domestic
and foreign wool.




TOOL-47 11 -

ltool required for principal Army contracts
awarded June-October 1940

Goades : Greasy shorn : Scoured
____ ___ quialnt : equiv, ..nt_
: LHi.n _.1 p': .I Miillion pounds


58 s, bo' ........... : 45
5 ................ : 23 10
'44's or finer .......: 17 23 10 13

Total ...........: 16 166 65 68

Grease equivalent figures are rough approximations based on incomplete data.
Scoured equivl-ent figures obtained from grease equivalent by using average
yields reported by the Bureau of the Census.

Since the United, States usually does not produce wool in sufficient
quantities for i ,:..tic consumption, the large orders of wool materials for
the Army will incr-se substantially the import requirements of this country
for wool. An anril:,-sis of wool supplies and c.onsumtion requirements for the
present year, th refore, is significant. At the beginning of the 1940-41
wool-marketing sc~ason, stocks or carry-over of wool in the United States
totaled about 130 million pounds of grease wool. The domestic production of
wool for th.e ,"cr :probably will total about 455 million pounds. Thus, the
total supply of -tppFrel wool in the United States on April 1, 1940 plus the
quantity that becorros available from domestic sources in the following 12
months is about 6S5 million pounds. This supply, of course, is being supple-
mented by imports of wool as the season progresses.

How large such imports will be depends chiefly upon the requirements
for mill consumption of wool during the year. In the year beginning April
1, 1939 mill conrur..ption of wool, greasy shown and greasy pulled, totaled
about 612 million Irounds. This quantity of wool used by mills was almost
entirely for civilian uses. The following table shows stocks, domestic
production, imr.ports and mill consumption for 1939-40 along with similar fig-
ures for 1940-41.

United States supplies of wool, 1938-40
(Grease basis)


Item _Year beginning April 1
: 1938 1939 : 194o
:Million pounds Million pounds Million pounds

Stocks on April 1 /..: 239 179 178
Production............ 436 441 454
Imports (general).....: 49 165 2/ 225
Total supply........ 724 785 2/ 857
Mill consumption...... 544 612 2/ 675

1/ Includes stocl:s Iheld by dealers and manufacturers and on farms and ranches
in the Western Sheep States, but excludes foreign wool afloat.
2/ Rough estimates.






wOOL-47


- 12 -


Mill consumption in the first half (April-September) of 1940-41 was
a little smaller than in the first half of 1939-40. Because of the large
Government orders and fairly strong civilian demand, consumption in the last
half (October-March) of 1940-41 probably will be much larger than that of a
year earlier. It is roughly estimated that total mill consumption for all
of 1940-41 will be about 675 million pounds, greasy shorn and greasy pulled
basis. This is about 65 million pounds (10 percent) larger than the con-
sumption in 1939-40. The percentage increase in mill consumption on a scoured
basis probably will be considerably greater than that on a grease basis,
because consumption this year will include a larger proportion of light
shrinking foreign wools.

If consumption in 1940-41 is as large as indicated and if stocks on
April 1, 1941 are as large as those of a year earlier, imports (general) of
apparel wool in 1940-41 will total about 225 million pounds, compared with
165 million pounds in 1939-40. Imports from April through September were
about 50 million pounds and the total from October through March probably
will be from 175 to 200 million pounds.

As already indicated, the requirements for Army orders are mostly for
fine wools. Consumption of wool for civilian requircmcnts usually is fairly
flexible among the several grades. That is, medium wools cin be substituted
for fine wools to a considerable extent. Nevertheless, it seems probable
that mill consumption for civilian use in the next 4 or 5 months will include
about as largo a proportion of fine wool as a year earlier. Thus n major
part of the United States imports during this period probably will be fine
wools.

Supplies of wool in exporting countries probably are adequate for the
increased needs of the United States. Most apparel wool entering inter-
national trade is produced in Australia, New Zealand, the Union of South
Africa, Argentina, and Uruguay (see cover patc). Lnrge quantities of wool
from these countries were shipped to continental Europc before the present
war. But as long as the British blockade of the European Continent con-
tinues, the United KingLton, the United States, and Jnpan will be the only
important outlets for exports of wool from the Southern Hemisphere.

The bulk of the wools produced in Arg~-ntin.a, Uruguna, and ITw Zealand
is of the medium and coarse grades. Australia and the Union of South Africa
produce mostly fine wools. For the next few months, our import requirements
will be chiefly for fine wools and it is doubtful if -uppli.s of fine wools
in Argentina and Uruguny will be large enough to cover our requirements.
Consequently, United States imports from Australia and the Union of South
Africa are expected to be fairly large in the next several months.

1941 consumption likely to exceed
that of current rear

It now appears likely that mill consumption of npp.rel wool in the
United States in 1940 will be close to the 1939 consumption of 630 million
pounds, greasy shorn anc. pulled. Consumption in 1939 was higher than in any







WOOL-47


- 13 -


recent year oxcent 1935. The relatively large consumption this year-is in
part the result of large Army orders filled during the latter part of the
year. Mill consumption for civilian uses in the first half of 1940 was
about 10 oprcert smaller than in the same months of 1939, and indications
are.that such consumption did not increase materially during the third
quarter of the year. The increase in consumption in the third quarter of
1940 largely reflected the preparation of wool to fill Army orders.

Vith production for civilian uses in 1940 down sharply and with
increased incomes of consumers in prospect under the National Defense Program,
consumption of wool for civilian uses may be-increased-in 1941.- If in addi-
tion, new military orders are placed.to be filled:ip 1941, total mill con-
sumption of wool in 1941 maybe substantially higher-than in 1940. The high
level of mill consumption in prospect for next year will be a supporting
factor to prices of wool from the 1941 clip in the United States.






wooL-47


- 14- -


Table I.- Prices of wool per round in 'sopcifed markets and Urices of textile
rTaw materials in the United States, selected *a-riods, 190-8-40

~. Aver nge 1979 1Q4Q
Market and description : Averge : 19 : 1940
: 3_______ 8: 1q93 : Sept. : Oct. : Au. : Sent. : Oct.
: Cents Cents Cents Cents Cents Cents Cents


United States:
Boston market -
Territory, scoured basis -
64s, 70s, Os: (fine)
stale ................
56s (3/8 blood) combine# ..:
46s (lowv 1/4 blood) ......
Bright fleece, greasy -
64s, 70s, SOs (fine)
delaine ...............
56s (3/8 blood) combing ..:
46s (low 1/4 blood) .....:
Foreign wool in bond at
Boston 1/ -
Sydney, 64s, 70s, combing,:
scoured basis .........:
Cape 12 months, combing :
scoured basis .........:
Montevideo Is (56s)
grease basis ..........:
Prices received by farmers,
gr-ase basis, 15th of month :

Textile fibers:
Cool, territory fine sta-le :
2/ ......................
Cotton, 15/16" Mi.linp 5/ .:
Silk, Japanese 4/ ..........
Rayon yarn, 1~0 denier 5/ ..:
Rayon stable fiber 6/
Viscose 1-1/2 denier ......:
Acetate 5 denier ........:


70.4
58.9
52.4


29.0
29.5
28.3



54.8

53.6

26.1

19.2



70.4
8.95
170.6
52.2


82.7
69.3
62.6


32.9
36.2
35.5



58.6


8 4.9
76.1



143.5
4 ..


1q9.5
94.1
87.5

7 ..0
I4-,.

4,--.,3


gq9.
75.4



34.:g
4-1.5
41.0


.92.4
78.5
76.0

36.0
41.?
41.2


1o4.5
87.2
78.5


42.1
45.0
43.6


72 79.2 6 .5 6-.5 3.


53.7 -.8 7p.S 61.0 61.6 6-.5

28.3 14.5 S.7 2., 228. 31.5

22.3 24.~ 2 .7 27.7 2-.0 29.9


82.7
9.30
272.6
51.5


S1. 5


27.1
",.0


gq.o

2 2.0
57.


92.1
q.4g
256.l
,.o0


2;.0 25..) 2.C' 25.C 25.0
46.c 46.0 4,r. 4.0 43.0


Comiled from reports of the Agric-ilt ,rrl 1T~'k-trin S-rvice :'c::-ent s -therv'is
noted.
l/ Before p:,mrent of duty. Compiled from the BoE-tor. Cornmrci7l Bulletin.
2 Scoured basis, Boston market.
Average at 10 markets.
4/ White, 13-15 denier, at New York, Bureau of Lnb:r Statistics.
SDiometic yyrn, first quality, Bureau of Latr Strti-tics.
F.o.b. producing plants, Bureau of Labor Sta.tis.tics.





COOL-47


Table 2.-Stocks of wool held by dealers and manufacturers and stocks on farms and
reaches in Western States, United States, 1935-40


Grease basis
Apparel wool" "
Domestic Foreign : :0:
: Manu- : Total
Dealers :facturers: On hand : Afloat :reported :
1/ :


1935
Mar. 30 4,/
June 29
Sept. 2.
Dec. 31
1936
Mar. 28
June 27
Sept. 26
Dec. 31
1937
i.ar. 27
June 26
Sept. 25
Dec. 31
1939
Mar. 26
June 25
Sept. 24
Dec. .31
1939
Apr. 1
July 1
Sept. 30
SDec. 31
1940
Ma.r. 30
June 29
Sept. 2R 6.


: 170,887
: 183,918
: 1i1,945
: 76, 6i

S 41,, ~.
: 1.6,325
12 8,45
: 67,-1 53

S34,8 7

: 1i.9,0,5
: 134,62.2

: 117,22C


l: C -,








: 116,76,3
/ 91,110


1,000 lb. 1,000 lb.

5/ 28,105
22,899
27,156
43,433


67,088


1,000 lb.

90,398
112,758
155,708
114,239

80,581
105,108
95,696
102,208

81,488
87,989
85,303
66,037

63,396
95,397
104,559
- 82.,.225

64,345 -
103,857
125,084
81,491

58,017
99,883
107,862


1,265
3,145
40,783

18,804
4,407
2,069
1,259

2,640
1,213
2,445
8,178

8,276
5,425
7,896
25,243

6,656
5,111
20,141


1


: Carpet
n farms : wool
iana : all
ranches : foreign
2/ 3/
,000 lb. 1,000 lb.


1,000 Ib.

289,390
319,475
344,809
234,533

189,505
295,146
261,598
246,881

212,750
287,387
276,178
239,487

216,772
297,722
321,157
238,403

180,939
255,767
244,862
202,534

173,683
262,942
263,381


Compiled from Bur-su of the Census, .Quarterly Wool Stocks Reports. These
statistics are believed to include over 95 percent of the total stocks held by,
and aflo t to cll detle-rs, manufacturers and topmakers in the United States.
1_/ Includes topma-. :ers stocks.
" / Estimrnted by tiie Department of Agriculture. Estimates are of wool on farms
Ard r.-nches and in loc-Cl country warehouses in 13 Western Sheep States, not in-
eluding sny vwocl -f the next seasons clip. No estimates available for dates where
no figures are shown.
3/ Includes carpet w.-ol afloat to the United States.
4/ Grease basis fici.Lres for March 30, 1935 calculated from statistics of condition
iT whinh reported. Stocks figures were not reported on a grease basis by the
'b'ireau of the Census until June 1935.
5/ "-. ri lF..n. u -c.r .-,r ie-ly -reported until June 1936. 6/ Preliminary.


Date


52,448
35,912
36,53.7

77,585
63,024
49,721
37,568

33,510
32,069
3.2,30-6
31,365

39,764
38,575
36,637
51,749

68,618
47,165
44,268


----~--


4,500

350


1,800

330


31,600

22,500


13,340

6,290


14,384

10,786


41,907
43,004
51,795
51,772

55,049
49,060
47,462
53,959

53,923
51,172
59,846
63,471

49,640
43,927
37,969
43,137

48,527
46,860
53,705
53,942

66,971
63,789
53,628


- 15 -





W'OOL-47

T-ble 3.-United tst-.s:


16'-

Wool imports, c-nsumption and m-achin;ry activity,
selected periods. 19303-0


Item


Sept. AAg. : Sept.


: i r ": Jani.-S-'sD :
: 19? : 193 : 1'39. : 1 0L :
: 1,000 1, C 1 L 1,00r


Imports for consumption, :
actual weight 1/:
Apr.re.! .................: 3 ,811
Finer than 40s .........: 18,443
Not finer than 40s .....: 12,369
C:.r;:t, including camels
hair ................: 71,908

Mill consumption 2/:
Grease basis 2/ -
Apparel ................:474,527
Carpet .................: 92,736
Scoured basis -
AgregatV -
Apparel ...............:219,565
Carpet ................: 64,945
Weekly average -
Apparel ...............: 4,143
Carpet ................: 1,225


Machinery activity 2/:
Hours operated per machine
in place -
,or-sted combs ..........: 39.8
Worsted spindles .......: 26.9
"'oolen spindles ........: 30.6
.'.c! en and worsted looms:
Broad ..................: 28.1
Narrow ................: 10.5
C-'r:et and rug looms -
Broad .................: 23.4
Narrow ................: 15.9


: pounds pounds ocuns "c-.ds


98,194
74,612
23,582


61,049
42,18
18,891


132,918
117,122
15,796


144,874 114,166 100,604


630,150
148,513


451,199 413,707
107,841 94,851


193 :
1, 000



12,0 1l
8,423
',61S


1940 :
1,000
pounds


,,864
C,393
1,471


:1940
1,000
pounds


15,194
13,319
1,875


17,260 6,060 6,423


,55,25 531,112
12,558 10,112


293,083 210,285 202,948
103,421 75,244 68,140


5,636
1,989


5,392 5,204 6,252
1,929 1,747 2,212


61,644
11,503


24,799 28,609
7,571 7,941

6,200 7,152
1,893 1,985


_ 7.-?,1 7 I r' frg_ n cu'Iri


51.8
39.6
'~)r\ C


49.3
37.1
?n t. ~


49.0
33.2
6n I


58.2
41.3
i 1


62.6
43.1
6Ii' I


-.D O _O.4 4 .4 .. 4...) .'3.

40.7 39.1 35.0 36.3 40.8 42.3
13.2 11.6 12.9 16.3 13.2 12.7

37.4 35.5 36.0 39.2 36.4 37.5
22.7 22.2 20.7 23.1 22.1 23.2


Import fieurm from the Bur-iau of F-r:-ign ni Do-,estic Comrerce. Cornsumption and
nutchinery activity from the Bureau of the Census.
1/ 'T. .t of gr-sy, scoured, and s:in 1wool added together.
/ FirFur;s for August and Setember based on 4 weeks, January-Septe',rber on 39 week
1938 fi.tur-a for 53 weeks ended December 31. No adjustments made for holidays.
3/ Total of shorn and pulled wool. Pulled wool, grease brsi7, is in condition
received from pulleries and is mostly washed.


r~, rJlsr~
OF~F~47


55.5
39.6 -
r i






WOL-47


Table 4.-Argentina: Wool exports by principal countries of destination,
average 1934-38, annual 1937-39

SYear berinninr October 1
Country of Average
destination : 1 1937 18 1939
: 1,000 pounds 1,0 C pounds 1,0100 pounds 1,000 pounds


United Kinrd.on .......: 85,025
Pran e ................ 48,367
Gernany ..............: 40,049
Italy ..... .......: 18,962
Belciun ..............: 20,458
ethlierlanids .......... 2/ ,190
United States 4./ : 5,80
Japan ........:........i 7,087
Other countries ......: 2,07


Total .........:


.0C4,655


72,560
49,246
66,4'78
11i,100
20,,,93
1,940
25,3 99
7,652
21,737

276,505


119,531
57,366
44,709
7,172
22, 710
3,3866
C5, 646
1,497
35,267
0'j, U


26,277
34,088
1/
18,803
11,091
10,227
138,980
15,066
27,260


281,792


Compiled from commercis reports supplied b:., the Buenos Aires Oti' ce of Foreign Agri-
cultural Relations.
1/ No shipments reported.
2/ Average of 4 years.
3/ Includes snall shipments to Canada in some .:.ear-.


Table 5.-Uruguay:


'ocl 1 eyr.,-ts b p i rinci l .:.lie3 .f destination,
ever .te i9 .4-.3., n *. n 1 .-.7- 9


Country of
destination


: Ye r be"rLn inC '.,' tober 1
S 37 198 1939
: 1, C" u pounds 1,"' pc.unds 1,000 pounds 1,000 pounds


United States ........: 14,718 1,39 16,581 36,880
United Fingdom .......: 20,48-9 21,C9. 10,76 1,423
France .............. 7,225 4, 7 5 6 ,4 3 1,137
Germany .............: 30,511 3,446 5,159 4,416
Belgium ..............: 10,465 6,57 91,:53 3,628
Italy ................: 13,484 7,458 16,'.0 13,341
Sweden ...............: 2,178 1,708 075 15,841
Netherlands ..........: 3,966 2,953 .,367 13,552
Japan ................: 7,8 0 5,668 i,395 5,531
Other countries ......: 4,155 7,56 10,,871 10,653


Total .............: 115,085


92,711


127,992


106,402


Compiled from commercial reports supplied b,- the Buen.os Aires office of Foreign
Agriciltural Pelations.


- 17 -





UNIVERSITY OF FLORIDA





3 1262 08861 5827







































e-I
.-..










































.i


~~~""

'"'


.










.,