The wool situation

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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:
AA00011232:00050

Related Items

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


This item is only available as the following downloads:


Full Text

/ UNITED STATES DEPARTMENT OF AGRICULTURE
Bureau of Agricultural Economics
Washington


WOOL-13 January 10, 1938



THE WOOL SITUATION
ILUMTqP AT --------------


Summary


U.S. DEPOSITORY I
Following the sharp decline in prices from September through November,

increased trading in Southern Hemisphere wool markets during December was

accompanied by small price advances in most markets, the Bureau of Agricultural

Economics re orts. Domestic markets also reported a slight increase in

trading during the month, but prices were irregular.

In view of the sharp decline of about 25 percent in prices of domestic

wools at Boston since August and the improvement in foreign markets in

December, domestic prices may hold near present levels in the next few months.

But since domestic wool prices are still relatively high as co-ipared with

prices of other textile raw materials, and supplies of raw wool and semi-

manufactures in this country are fairly large, no marked advance in prices from

present levels during the first quarter of 1930 appears probable.

Total supplies of apparel wool, on a grease basis, in the United States

on January 1 were estimated to be about 60 percent larger than a year earlier,

but they were not greatly different from the 10-year average,

Mill consumption of apparel wool, on a scoured basis, in the United

States during November was 56 percent smaller than in November 1936, and was

the smallest November consumption in any of the past 20 years of record.

Consumption during the first 11 months of 1937 was only 5 percent smaller

than that of the same months of 1936 because of the large consumption in the

early months of the year.


.. 'I~lcl





WOOL-13


If mill consumption of apparel wool in the first quarter of 1938 is

below that of the same period for the past 2 years, as was true during the

last quarter of 1937, stocks on April 1, 1938, will be considerably larger

than a year earlier, but perh- z not much greater than the 10-year April 1

average. In view of the fairly large stocks of wool in the United States

at the bcginnr.i~ of 1938 and the pro.:pects for relatively small mill con-

sumption during the next few months, imports in the first quarter of 1933

are likely to be much smaller than for the first 3 months of 1937.

The weakness in mill demand in several foreign countries during the

second half of 1937 resulted in smaller imports into those countries and

in accumulations of stocks of raw wool in Southern Hemis:phre -roi'cing

countries. On December 1, apparent supplies for disposal during the rest

of the current season were about 12 percent lar-er than those of a ycar

earlier, and 9 percent alove the average forthat date in the 5 years,

1931-35. Southern Hemisphere wool supplies for the 1937-30 season were

estimated to be only 3 percent 1 r:er than for the prec. i-ng season.

Indications are that stocks of raw wool remain relatively small in most

foreign importing countries.


SDO',STIC SITUATION

BAY:.G,'>Th...- Chiefly as a result of the weakness in
mill demand and generally unfavorable business conditions,
wool prices have declined in both domestic and foreign
markets since August. Domestic mill consumption has
declined sharply since .:..y, and cons .:. tion also has
declined in some foreign countries. T.he fairly large
supplies of raw wool held by United .ta2tcs rn.-iufacturers
and the large stocks of finished and semi-finished goods,
together with the decrease in mill activity in this
country, probably accounted for the lack of trading in
the domestic market in the latter part of 1937.


-2-







WOOL-13


Wool Sales a:nd Prices

A slight increase in trading on the Boston wool market was reported in
December. Prices continued son.ewha.t irregular, Lut were generally firmer
than in the previous month, accordii.i to ru orts from the Boston Office of the
Bureau.

Quotations on gr:'.'.d combing terrictry wools, scoured basis, at
Boston at the end cf Decembe.r wvre about 30 percent lo.'cr than a year earlier
with declines on medium grade wools slightly larger th-. rn orn fi-ne I:'dos.

The average price for greasy wool r.ccived by farmers as of December 15
was 23.6 cents per pound compared with 26 cnts a ,, : th earlier and with
30.1 cents in mid-Decenber of 1936. Some sales in Texas of 12 months'
wools to Boston dealers ;:ere reported i. D-ceLbcor.

Alth.. u-'. domestic wool prices declined sharply' in the latter part
of 1937, they are still rather high in relation to other textile raw materials.
Using 1929 as a base, tne price indox for fine combing wool at Boston in
December was 82, while on the sanm basis the index for cotton was 45;
silk 33; and rayon yarn 51. In view of the present price relation of wool
and other textile raw materials and the reported fairly large stocks of
finished goods, no material increase in mill consumption from the last quarter
of 1937 seems probable in the next few months.

With prospects for little improvcurnt in mill consumption during the
first quarter of 1930 and :with total supplies of wool in the United States
now considerably larger than a year ago, no marked advance in do..cstic prices
of wool in the next few months appears probable. The recent strength in
prices in foreign markets if maintained, however, will tend to check further
declines in wool prices in the United States. But because the present
fairly larr.. supplies of wool in this country and the weak mill demand for wool
has reduced the need for imports, changes in foreign prices of wool will not
be of asmuch importance as a factor affecting domestic prices in the next
few months as these changes were a year earlier when imports were large.


Wool Stocks

The total supply of apparel wool, on a grease basis, in the United
States, including wool held in producing States, on January 1, 1933, was
estimated to be more than 100 million pounds larger than a year earlier and
also was larger than 2 years earlier. Supplies were, however, about equal
to the January 1 average for the preceding 10 years. At the beginning of 1938
a much larger-than-usual proportion of the wool supplies in this country was
held on farms and ranches and in local warehouses in the producing States.

If mill consumption in the first quarter of 1930 continues below that
of the past 2 years, as was the case during the last quarter of 1937, stocks
on April 1, 1938 will be considerably larger than a year earlier, but perhaps
not greatly different from the 10-year, April 1 average.


-30







WOOL-13


"oo!l Imports

United States imports of apparel wool for consumption amounted to
about 3,8 million pounds in ilovember, a little more than one-third as large
as imports in November 1936 and the smallest im-,orts for any month since
September 1935. Because of large imports during the first half of the
year, however, total imports of apparel wool in 1937 were larger than in any
year since 1926.

Imports of apparel wool in the first half of 1538 are likely to be
much smaller than in the first half of 1937. Supplies of wool in the
United States at the beginning of 1938 were much larger than on that date
in either of the past 2 years, and the spread between domestic and foreign
prices was much smaller than at the beginning of 1937.

Imports of carpet wool into the United States in 1937 appear to have
surpassed all previous years. In the first 11 months, imports for ccrsumption
totaled 169 million pounds, the largest ever reported for those months.
Imports in December probably were below average, but the total for the
year is likely to exceed the record of 171 million pounds import-:in 1729.
Because of reduced consumption of carpet wool in recent months, stocks of
such wool in the United States at the beginning of 1938 were considerably
larger than a year earlier.


Mill Consumption

Mill consumption of apparel wool.on a scoured basis, in t he United
States in November, averaged only 2,651,000 pounds a week. This was the
smallest consumption reported since September 1934 and the smallest November
consumption on record (since 1918). The consumption in rIovembcr was 20
percent smaller than in October and was 56 percent smaller than in November
1936.

Consumption on a scoured basis in the first 11 months of 1937 was
only 5 percent smaller than in those months -f 1936 because of the large,
consumption in the early months of the year.

Consumption from January through November 1937 was equivalent to
406 million pounds of shorn wool, greasy shorn basis, and to 65 million
pounds of pulled wool, greasy pulled basis. Mill consi. .tien on a !rease
basis in the first 11 months of 1936 was equivalent to 446 million pounds cf
shorn wool and 72 million pounds of pulled wool.







WOOL-13


-5-


FOREIGN SITUATION:

Tool Sales a:d Prices


The decline in ool prices in foreign markets was checked in Decemrber
and sonr- advance from the low point was reported in Southern Hemisphere
selling centers before the sales closed for the holidays.

The average price of 70s warp wool at the Sydney, Australia auctions
in November was 57.7 cents a pound, clean basis, delivered Bradford, compared
with 63 cents in October and 65.2 cents in November 1936. Japanese buying
was resumed at Sydney and Melbourne in the early part of Decelmber and larger
sales to England and continental Europe'were reported. The increased
trading was 'accom..nied by small price advances in all markets.

Prices at the New Zealand sales in December were higher.than at the
opening sales of the season in -Novermber England and France were the
principal buyers at the iellington sales on December 8. Japan bought some
wool nt Wellington but was not a purchaser at later sales during the month.

The selling season in South American markets opened in October and
November. Growers were not disposed to accept the lower prices offered and
sales were small in the early months of the season.

The first series of the London wool sales in 1933 will open on
January 18.


Apparent Supplies of Wool in Southern Hemisphere, Decoember 1
1/
On December 1 apparent supplies for disposal during the remainder of
the 1937-38 season amounted to 1,364 million pounds, 12 percent above those
on the same date in 1936 and 9 percent above the 5-year (1931-35) average on
that date. Supplies now exceed those of Decumbur 1, 1932 when they were the
largest on that date during the 10 years, 1927 to 1936.

Although Southern Hemisphere supplies of wool for the entire 1937-38
season are estimated to be only 3 percent larger than for t he preceding
season, the slackness in demand up to Dececmber 1, accompanied by an unwilling-
ness on the part of owners to readjust prices to a lower level than that
received last season, resulted in a s.aall export movement in the first part
of the season. Therefore a considerably larger-than-usual quantity of wool
is now on hand in the Southern Hemisphere for disposal during the latter half
of the season. Considering the fact that the Southern Hemisphere supplies
for the entire 1937-38 season were not above average it is possible that
a fairly good clearance of the supplies now on hand will be made in 1938,
in view of the downward adjustment in prices since August.


I/ See footnote to table on page 6.







WOriL- 13


Apparent supplies of wool remaining for disposal in five principal
Southern Hemisphere countries as of December 1, 1931-37 1/


S: : Union :
Period :Australia: ew :f South :Argentina: Uruguay: Tot.
Zealand
: : : Africa
S._ilion .1 n i n Million iMllion Million Iiill:
: pounds pounds pounds funds pounds -oun


1931 ........ ;
1932 ...........
1933 5 ...:
1934 .......... .:
1935 ...........:


687.3
749.1
610.6
u20.5
678.6


335.0
354.7
326.9
291.6
353.2


273.2
223.1
195.0
189.0
177.7


365.,0
365.0
338.9
363.0
356.1


94.4
101.3
93.2
117.5
110.9


al


ion
ds


1,755.4
1,793.2
1,564.6
1,781.6
1,676.5


5-year average
1931-35 .....: 709.3 332.3 211.6 357.6 103.5 1,714.3


1936............
1937 ........... :


676.7
729.1


311.4
311.5


197.0
232.2


363.3
404.3


115.7
116.4


1,664.1
1,864.5


1/ Carry-over from preceding season plus estimated production minus exports
from beginning of season to end of November. No account taken of relatively
small quantity sold but not exported and that used for domestic consumption.


Exports Ifr,~o South rn Hemi shere Countries

Exports from the five principal wool producing countries of the
Southern Hemisphere were smaller in Lovember 1937 than in the same month in
any of the 10 years, 1927 thrcur.l 1936. They were 24 percent smaller than
in November 1936 but only 6 percent below those of November 1934.

November exports in 1937 were only 29 percent larger than those of
October, compared with an average November increase over October of a little
more than 50 percent.

During the 5 months from July through November, exports from the same
five countries amounted to 455 million pounds, a decrease of 11 percent
from a year earlier. The greatest percentage decrease was in Uruguay,
followed by the Union of South Africca and Argentina.


2/ Australia, New Zr:.lmi., Union of South Africa, Argentina, and Uruguay.


-6-





WOOL-13


Exports of wool from Southern Hemisphere countries, July November
1936 and 1937


: : ]few : Union of :
: Australia Zealand South : Argentina :Uruguay
1/ 1/ :Africa 2/ 3/ 3/
Period

1936 :1937 1936 :1937 1936 .1937 1936 '1937 :1936 1937 1936
:'il Mil MiMil l. i. il. Mil. Mil. Lil. Mil. Mil.
:1b. lb. lb. lb. lb. lb. lb. lb. lb. lb. lb.

July ....: 30 49 7 9 6 5 10 16 4 5 56
Aug.....: 12 4 8 9 2 4 11 13 3 2 36
Sept....: 65 68 6 7 4 4 8 10 4 1 87
Oct. ...: 103 84 6 2 25 16 10 7 3 4/ 146
Nov. .... 111 96 6 5 36 29 22 8 9 2 184
Total. : 321 301 33 32 73 58 61 54 23 10 511


Total


:1937
Mil.
lb.


84
31
89
109
iog
140
455


l/ Estimates of Dalgety and Company.
2/ Official estimate supplied by the London Office, Bureau of Agricultural
Economics.
3/ Trade estimates supplied by the Buenos Aires Office of the Bureau of
Agricultural Economics.
/ Less than 500,000 pounds,


Exports of wool (grease and scoured combined) from Australia, Union of
South Africa, and New Zealand, to principal consumin- countries,
July October 1936 and 1937

:Union of : New
SAustralia :South Africa : Zealand Total
Country of -------.-- .. .
destination : 1936 : 1937 : 1936 : 1937 193936 : 1937 : 1936 : 1937

:Mil. Ib.Mil. b.Mil. Ib.Mil.lb.Mil. b. Mi i.lb. Mil.lb. Mil b.
United Kingdom ....: 107.2 82.1 6.1 6,4 17.8 15.7 131.1 104.2
Option Continent : --- --- --- --- 1.5 0.4 1.5 0.4
Germany ...........: 13.7 15.7 2.5 6.0 0.0 0.6 16.2 22.3
France ...........: 17.1 33.2 6.5 8.1 0.4 1.8 24.0 43.1
Italy .............: 4.3 9.0 2.1 2.8 1/ 1/ 6.4 11.8
Belgium ...........: 32.7 27.8 3.1 3.7 0.0 0.5 35.8 32.0
Netherlands .4..... 4.9 2.8 1/ 1/ 1/ 1/ 4.9 2.8
Japan .............: 0.3 8.0 14.5 0.0 3.0 2.1 17.8 10.1
United States .....: 4.1 2.9 0.1 0.1 3.2 2.8 7.4 5.8
Canada ............: 0.8 1.0 1/ 1/ 1.3 1.1 2.1 2.1
Total.........: 185.1 182.j 34.9 27.1 27.2 25.0 247.2 234.6
Other countries....: 10.1 8.2 2.2 1.6 1.3 I.4 14.1 11.2
Grand total...: 195.2 190.7 37.1 2o.7 29.0 26.4 261.3 245.8

Compiled from "Wool Intelligence Notes".
l/ Not reported separately, if any, included with "other countries".


-7-











Wool Suli es in Tr..i-rtir.- Countries

Such information as is availiblh ilndicates that stocks of raw
wool remain relatively small in iiost foreign i!Fri-rtir. countries,
alt..ough they probably are slightly larLr in somo countries than a year
earlier. France, Germany, and. Italy purchased more wool from Sout:hrn
Hemisphere countries from July through October than in the same months of
'1936, but the wool appears to have gone- rapidly into manufacture.

The United iKingdom, Belgium and Japan took smaller quantities of
wool during those 4 months than in. crreoscndir,. period of 1936. The
reduced imports, however, were :cc;.- -.i0d by small-r mill consumption in
those countries.



:.Janufacturing Activity in Impocrtin, Count:ries

The general uncertainty in commodity markets and the decline in wool
prices in rec-nt months have boon acco.-panied by a decline in activity
in the wool textile industries of soLe foreign countries.

Conditions in continental Europe showed little chan c in :ovco:ber
as compared with October. Th' continued decline in wool prices in world
markets was accompanied by a further decline in now business, but most
sections of the manufacturing industry continued fairly well employed on
old .contracts.

The British Ministry of Labour reports that 15.5 percent of insured
workers in the woolen and worsted industry of the United Kingdom were
registered as unemployed on November 15 compared with 11.3 percent a
month earlier and 6.7 percent on I.cvember 15, 1936. British mill
consumption of wool in the final quarter of 1937 was believed to be fully
25 percnt seller than in the same months of 1936.






'700L-13


Table 1.- Price of wool per pound in specified markets and prices of
textile raw materials in the United States, selected periods,
1935-37

: : : : 1937
Average Average 1936
Market and description 1935 936 Dec. Oct. :Nov.
: :


Boston:
Territory combing scoured basis-:
64s, 70s, 80s (fine) ........:
56s, (3/8 blood) .........,, .:
46s, (low 1/4 blood) ........:
United States: Farm price, 15th
of month, grease basis ......:
London / :
Average quality, clean cost 2/- :
70s .........................:
56s ........ ............. :
46s .... .................. ..
Bradford 2/:
Scoured basis -

50s .................. ......
645s warp ....*.*... ......*.....:

Australia:
Average price at all selling :
centers, greasy wool /..
Sydney (Delivered Bradford) j/- :
70s warp, clean basis .......:
Union of South Africa;
Average export price, greasy
wool .. .*. ..**. *.. .. ........:
Price at selling centers 6/- :
70s warp, clean cost ........:
.United-Statcs:
Textile fibers -
-Wool, .trrit-ry-fine staple 7/
-Cotton, 7/8 Middling 8/.... :
Silk, Japanese 13-15 9/.....a
Rayon yarn 150 denier ....:


Cents Cents Cents Cents Cents


74.8
63.6
51.4

19.4


47.5
29.0
18.6


47.7
23.2


92.0
80.4
65.9

26.9


58.4
35.1
23.8.


59.8
29.7


106.8
94.7
79.2

30.1


61.3
42.9
33.7


67.5
40.9


92,1
78.8
66.8

29.2


53.7
41.3
35.5


57.8
41.3


28.0 22.6

67.4 63.0


24.8 23.5

69.4 56.8


74.8
11.8
163.3
57.3


92.0
11.9
176.6
58.6


106,8
12.6
196.8
60.o


92.1
8.1
172.1
63.0


Dec.

Cents


85.9 80.9
72.0 64.2
60.6 56.0

26.0 23.6


47.6
35.4
29.7


51.1
31.3


21.5


52.0
32.3


10/
57.7 58.3


22.2
10/
53.1 54.7


85.9
7.8,
164.8
63.0


80.9
8,2


Foreign prices have been converted at prevailing rates of exchange.
_/ Average of quotations for each series of London sales reported by the London
Office of the Bureau. For months when no sales were held figures are
interpolated.
2/ Top and noil in oil.
i/ Quotations reported about the 25th of the month by the London Office of the
Bureau,
4/ National Council of Wool Selling Brokers.
/ Wool Record and Textile I'orld, Bradford.
SSouth Africa -'lnijtry for Agriculture.
Z/ Scoured basis, Boston market.
8/ Average at 10 markets.
9/ 78 percent white, at Now York,
10/ Week ended Decomber 18.


-9-




UNIVERSITY OF FLORIDA

3 1262 08861 5736


-10-


Table 2.-


United States: Wool imports, consumption and machinery
activity, specified periods, 1936 and 1937


: Jan.- IJov.


Item


- --...... -- 'Tov. Oct. Ilov.
1936 1937 1936 :1937 : 1937
: 10000 0 1,0000 o 1,000 1,000
: pounds pounds pounds pounds _pounds


Imports for consumption, actual:
weight 1/ -
Apparel ....... ..
Finer than 40s ....
Not finer than 40s

Carpet,including camels
hair ...... ...... ..:

Consumption, scoured basis 2/- :
Weekly average.-
Apparel .
Carpet ..... .....:
Aggregate -
Apparel ..... ..... :
Carpet ...........:


98,050
75,215
22,835


127,350



5,217
1,961

250,405
94,150


147,380
124,184
23,196


10,376
8,,219
,2157


4,461
3,496
- 965


168,903 14, 879 9,513


4.964
2,132

238,296
102,340


5,932 3,319
2,484 985


23,928
9,936


16,593
4,926


3,802
2,996
806


6,220



2,651
682

10,604
2,730


: Percent Percent Percent Percent Percent


Machinery activity .2/ -
(40-hour shift)
Worsted combs .......:
Worsted spindles .....:
Woolen spindles ......:
Looms, broad ........ :
Looms, narrow ........:
Carpet and rug looms


118.5
80.9
116.2
97.3
50.8
67.2


119.4
84.5
111.8
99.9,
53..-1
74.1


135.5
104.0
123.1
103.8
52.9
S80.5


74.6

80.6
63.6
34.3
52.5


62.0
47.6
55.3
56.1
27.1
35.7


Import figures from official records of the Bureau of Foreign and Domestic
Commerce. Consumption and machinery activity figures from the Bureau of the
Census.
1/ Weight of greasy, scoured and skin wool added together.
2/ Figures for Hovember based on 4 weeks, October on 5 weeks, January
to November on 48 weeks. No adjustment made for holidays.




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