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The wool situation
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Permanent Link: http://ufdc.ufl.edu/AA00011232/00054
 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: [1937-1942]
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 rights reserved by the source institution and holding location.
Resource Identifier: oclc - 02269655
ocm02269655
Classification: lcc - HD9894 .Un33
System ID: AA00011232:00054
 Related Items
Preceded by: World wool prospects
Succeeded by: Livestock situation
Succeeded by: Livestock and wool situation

Full Text

A3c. ^*,- .
UNITED STATES DEP .RT l,'T OF AGRICULTURE
Bureau of Agricultural Economics
Washington


WOOL-4 April 9, 1937


-- -------- --- ------' "- ---- - -- -
THE WO O L SITUATI N



Summary


Domestic wool prices probably will show little change during the

early months of the 1937 marketing season which begins this month, the

Bureau of Agricultural Economics reports. Price changes in the latter

part of 1937 will depend to a considerable extent upon the demand from

domestic manufacturers and on price changes in foreign markets when the

new Southern Hemisphere selling season opens in the fall.

Consumption of wool by domestic mills continued large in February.

On the basis of sales and unfilled orders reported by mills, activity

is expected to continue at a relatively high level for the next few months.

It is possible, however, that the high activity in January and February

was due in part to early placing of orders, and may have been at the

expense of activity later in the year.

Because of large imports in recent months, supplies of wool in the

United States on March 1 were estimated to be slightly larger than a year

earlier but wore below the average of recent years. Stocks of old clip

domestic wool were small and domestic production in 1937 is not expected

to show much change from that of last year.

Apparent supplies of wool in the five principal Southern Hemisphere

wool producing countries on March 1 were estimated to bc ab6 ULl 1t

smaller than on the same date of 1936 and 11 percent bolcw the .avcra-ce'-on


Ut t-' STORY





WOOL-4


that date of the 5 years, 1931-35 Stocks also are believed to be relatively

low in importing countries as a result of increased consumption in the last

2 years.

The decline reported in prices of s2ot wools at Boston in February

continued in the early part of 7March but prices strengthened in the latter

part of the month. The recent firmness in the domestic market probably was

the result of higher prices in foreign markets. Interest in domestic wools

has now shifted to the 1937 clip. Prices for new wools were reported

unchanged to slightly higher in March.


DOvMESTIC SITUATION

BACKGROUITD: Consumption of wool by United States
mills has been unusually high since the beginning
of 1935, wool supplies have been reduced, and
prices have advanced to the highest levels since
1929. The increased consumption has resulted from
general improvement in economic conditions and has
been aided by Government orders for wool goods.
Demand for wool in foreign importing countries was
also strong in 1935 and 1936 and wool supplies are
relatively low in all markets. See chart on United
States production, consumption and farm price at
end of report.


Wool Sales and Prices

The decline reported in prices of spot wools at Boston in February
continued in the early part of :;'arch but prices became firmer in the latter
part of the month. The check to the downward trend in prices at Boston was
the result of higher prices in foreign markets. Spot sales at Boston in
recent weeks have been chiefly of foreign wools.

Interest in domestic wools has shifted to the 1937 clip which is now
being shorn. Early shorn wools from Ohio, Mvichigan, and HIow York probably
will be available at Boston in April. The Boston office of the Bureau reports
that country-packed lots containing 3/8 and 1/4 blood fleeces were sold in
March at about 43 cents a pound in the grease delivered to Eastern buyers.
Toward the end of :-irch, however, buying limits for such wool were reported
to have been raised from 35 cents to about 37-30 cents to growers, and
dealers' asking prices were raised to 44-45 cents delivered in the East.
Contracts for fine territory and 12-months Texas wools were sold in Boston
during March at $1.00-$1.02 scoured b-.sis.


I








WOOL-4


A considerable amount of wool from the 1937 clip already has been
disposed of by growers through pre-shearing contracts and by early direct
sales. Prices are likely to remain near present levels during the months
of heavy marketing by growers. Later in the season prices will be influenced
by the trend in domestic mill consumption in the second half of 1937
and by prices established at the new selling season in foreign markets.


Wool Stocks

The New York Wool Top Exchange Service estimated that supplies of
apparel wool on a grease basis in the United States on March 1, including
all old and new clip wools in all hands- as well as the estimated unshorn
portion of the 1937 clip, was about 5 percent larger than on March 1, 1936,
but was about 7 percent smaller than the 'VIarch 1 average for t he preceding
10 years. The increase in stocks of wool on March 1 as compared with a
year earlier resulted entirely from the unusually large imports of wool
in the first 2 months of this year. Stocks of old clip domestic wool are
small and United States production for 1937 is not expected to show much
change from that of 1936.

Mill Consumption

Mill activity in the United States wool manufacturing industry
continued at a high level during February. The rate of consumption of
apparel wool in February was the highest since November 1935, with the
exception of December 1936, and was the highest reported for the month of
February since 1923.

The weekly average consumption of apparel wool was 6,430,000 pounds,
scoured basis, in February as compared with 5,763,000 pounds in January
and with 6,122,000 pounds in February 1936. The consumption in the first
2 months of 1937 was equivalent to 92 million pounds of shorn wool, greasy
shorn basis, and 15 million pounds of pulled wool, greasy pulled basis.
See table 2 on page 9

Mill sales of cloth for menswear continued heavy in the first quarter
of 1937 and additional Government purchases were expected to increase the
already large number of unfilled orders on hand. Because of the relatively
heavy orders now booked, mill consumption is likely to continue at a fairly
high level during the first half of 1937. However, the relatively large
volume of unfilled orders for civilian wear reported during the first
quarter of 1937 may have been due in part to the early placing of fall orders
in anticipation of higher prices and higher labor costs, and therefore may
have been at the expense of activity later in the year.


-3,








WOOL-4


-4-


FOREIGN. SITUATION

Wool Sales and Prices

London auctions The second series of 1937 wool sales at London
was held from March 2 to 12. Comparisons of opening prices with the January
series reflected the declines which had occurred in Southern Hemisphere
markets during February. The trend in prices during the .larch series was
upward and at the close of the sales prices of most wools were above the
January closing prices.

English buyers took 40,500 bales at this series and continental
European countries took 32,000 bales. Russia was an important buyer at this
series but no sales to the United States were reported. Withdrawals were
very small and only 6,500 bales were carried over to the third series which
will open' April 26.

Southern Hemisphere sales The selling season for combing wools has
practically ended in all Southern Hemisphere markets except Australia and
New Zealand. Supplies of coarse crossbred wool in Argentina are reported
to be negligible and no additional 12 months' low crossbred wools will be
available in that market until next November. Japan and the United States
purchased almost half of the South American wools of the 1936-37 clip.

Prices declined at the Australian wool sales during the first 3 weeks
of February. In lats February and in -March some advance occurred, but
in mid-March prices were still below the January high point. The average
price received for greasy wool at all Australian selling centers was 29.7
cents a pound (current rate of exchange) in February compared with 31.6
cents in January and with 26.1 cents in February 1936.

Price changes at the New Zealand sales in February and March were
similar to those at the Australian sales. Japan and the United States were
the principal buyers. Final sales of the season will be held at all New
Zealand centers during April.


Apparent Supplies in Southern Hemisphere Countries on March 1

On March 1, apparent supplies I/of wool in the five principal
Southern Hemisphere wool producing countries were estimated to be about 6
percent smaller than on the same date of 1936 and 11 percent below the average
on that date of the 5 years, 1931-35.



1/ Estimated production for the season plus carry-over, minus exports
to February 28. No deduction made for relatively small quantities consumed
locally or stocks sold but not yet exported.








WOOL-4


-5-


Indications are that supplies on March 1 were smaller in all countries,
except the Union of South Africa. In that country, however, it is believed
that there were fairly large stocks of sold wool on hand which had not yet
been shipped by March 1. This was the case at the beginning of February
when the quantity of sold wool on hand was more than twice as large as at
the same time a year earlier and more than three times as large as the
stocks of unsold wool.


Wool Exports from Southern Hmisphere Countries 2/

For the current marketing season up to the end of February, the
excess of exports over the corresponding period of last season had dropped
to 2 percent whereas at the beginning of February it was 6 percent.
Although exports now exceed the average for the corresponding period of the
five seasons, 1930-31 to 1934-35, by only 2 percent, they are 20 percent
larger than in the same period of 1934-35 when available supplies were
larger, but when prices had fallen from the level of the preceding season.

The outstanding feature of the current export season so far is the
large increase in shipments from South America. Exports for the 5 months
October 1, 1936, to February 28, 1937 from Argentina and Uruguay increased
37 percent as compared with the same period of 1935-36. The largest purchaser
of South American wool during this period was North America, principally
the United States. Exports to this country from Argentina and Uruguay
reached approximately 75,000,000 pounds and were more than twice as large
as in the same period of 1935-36. South American countries also materially
increased shipments to Japan and the United Kingdom whereas there was a
distinct falling-off in exports to continental countries.

On the other hand, there was a slight decrease in the combined total
shipments from the British Empire wool producing countries of the Southern
Hemisphere up to the beginning of February. This may have been partly
caused by the absence of Japan as a purchaser in the Australian market
during the first half of the season but it is probably due mostly to smaller
available supplies for the season.


Wool Supplies in ImportingCountries

Large purchases of wool by the United Kingdom and continental
European countries during the 1936-37 selling season in the Southern
Hemisphere have been reflected in sharp seasonal increases in imports into
those countries in recent months.




2/ Export season in Australia, New Zealand, and the Union of South Africa
extends from July 1 to June 30, and in Argentina and Uruguay from October 1
to September 30,






-6-


Imports of wool into the United Kingdom and Belgium were larger
in 1936 than in 1935, and on the basis of export statistics for the
current season in the Southern Hemisphere, the increase apparently continued
during the early months of 1937. Imports into France and Japan declined
in 1936 but are expected to increase in the early months of 1937. Italy
is also expected to show an increase in imports from the unusually low
level of 1936.

In view of the present rate of activity in the wool manufacturing
industries of the principal importing countries and the Barly closing of
the current season in the Southern Hemisphere, stocks of raw wool in
importing countries probably are relatively low and are likely to remain
low until the new Southern Hemisphere clip becomes available in the fall.

Stocks of raw wool in reporting warehouses in Japan at the end of
December 1936 were 24 million pounds compared with 30 million pounds a
month earlier and 44 million pounds a year earlier, according to
statistics published in "Wool Intelligence Iotes", England, February 1937.


Manufact urij n Activity in Importing Countries

The monthly index of wool top production for the United Kingdom,
France, Belgium, Poland, and Hungary was 96 for January (1935= 100)
compared with 100 (revised) in December and 111 in January 1936, according
to statistics published in "Wool Intelligence Notes"', England. The
decline in January was attributed in part, to uncertainty regarding the
trend in raw wool prices.

The percentage of insured workers in the woolen and worsted
industry of the United Kingdom reported by the Ministry of Labour as
unemployed on February 22 was 7.4 compared with 7.1 percent on January 23
and 9.7 percent in February 1936. Exports of wool tops, yarns, and woolen
and worsted tissues from the United Kingdom in February were smaller than
in January and exports of tops and yarns were also smaller than in
February 1936.








WOOL-4


United Kingdom: Index numbers of production in the woolen
and worsted and hosiery trades, 1935 and 1936

1930=100


Woolen and Worsted. Hosiery(knitted goods)
Period 1
1935 1936 1935 : 1936


1st. quarter ....: 105.3 113.5 107.8 114.2
2nd ....: 106.0 110.7 111.0 115.3
3rd ....: 109.0 .110.5 115.4 120.2
4th ..... 117.1 115.3 118.6 122.5

Year ........ 109.4 112.5 113.4 118.1


United Kingdom Board of Trade Index, published in Wool
Intelligence Notes", February 1937.




Manufacturing activity was fairly well maintained in the wool
industries of continental Europe during February according to a report
from Agricultural Attache' Steere at Berlin. New orders were somewhat
curtailed in Belgium and France, however, as a result of the decline in
wool prices in the first half of February.- The Italian industry
continued to profit from increased export business which has made
possible the importation of larger quantities of raw wools. Wool supplies
in Germany continue low. The efficient substitution of reclaimed wool
and artificial fibers however, has made it possible to maintain mill
activity at fairly satisfactory, though somewhat reduced, levels.


-7-






WOOL-4


Table 1.- Price of wool per pound in specified markets, selected periods,
1935-37


Market and description


Average Average.
S1935 1936
: Cents Cents


Boston:
Territory combing scoured basis-:
64s, 70s, 80s (fine).........: 74.8
56s, (3/8 blood) ............: 63.6
46s, (Low 1/4 blood) ........: 51.4
U. S. farm price(l5th of month)- :
Grease basis ................: 19.4


London: _/
Average quality clean cost 2/
70s ... ...... .. .. .... :
56s ... .... . .... ..:
46s
46s ...... ................:
Bradford: 3/
Scoured basis -
64s warp ....................
50s warp .... ............. .:
Australia:
Average price at all selling
centers, greasy wool /........
Sydney (Delivered Bradford) -5/-
Clean basis, 70s warp .......
Union of South Africa:
Average export price,greasy wool:
Price at selling centers 6/
Clean cost exwarehouse,:
70s warp ............... .
Argentina:
Buenos Aires market -
Buenos Aires, South and South-
east,greasy coarse crossbred 7/
Uruguay:
Montevideo market -
Fine crossbred, greasy,
50s-56s to 60s 8/ .........:


47.5
29.0
18.6


47.7
23.2


92.0
80.4
63.9

9/26.9


58.4
35.1
23.8


59.8
29.7


Feb. Jan. Feb.
1936 1937 : 1937
Cents Cents Cents


93.8
81.5
65.9

25.6


58.1
34.2
22.7


58.3
28.1


26.1

63.0

21.1


53.2


114.0
98.8
82.1


114.0
99.8
83.2


Mar.
. 1937
Cents


113.0
95.7
81.0


31.3 31.6 31.7


64.4
49.5
39.3


69.5
44.9


63.7
48.4
38.7


60.1
38.7


66.2
47.8
39.2


67.2
42.7


31.6 29.7

73.9 70.6

28.3 27.2


69.7 67.1


13.7 23.0


23.8


40.8


none


Foreign prices have been converted at prevailing rates of exchange.
1/ Average of quotations for each series of London sales as reported by the London
office of the Bureau of Agricultural Economics. For months when no sales were held
figures are interpolations of nearestactual prices. 2/ Top and noil in oil.
3/ Quotations reported about the 25th of the month by the London office of the
Bureau of Agricultural Economics. 4/ National Council of .ool Selling Brokers.
/ Wool Record and Textile World, Bradford. 6/South African Ministry for
Agriculture. 7/ r.lonthly average of weekly range quoted in Revista Quincenal de
Precios published by Salaberry, Bercetche & Cia., B.A. 8/ Average of maximum
and minimum prices for last of month. Furnished by American Consul A. W. Ferrin.
9/ Preliminary.


-8-








WOOL-4


Table 2.-


United States: Consumption and imports of wool by
classes, specified periods, 1936 and 1937


:Jan. Feb.
Feb.
Item 1936 1937 1936

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


Consumption, scoured basis 1/
Weekly average
Apparel ...........: 5,910 6,060
Carpet ...............: 1,686 2,846
Aggregate
Apparel ..............: 53,193 54,536
Carpet 4.......... : 15,176 25,616.
Imports for consumption,
Actual weight 2/-
Apparel .............: 21,934 50,801
Finer than 40s .....: 18,164 43,817
Not finer than 40s .: 3,770 6,'984
Carpet, including
camels hair .........: 19,761 41,269


6,167
1,839

24,668
7,356


Jan.


:Feb.


1937 1937
1,000 1,000
pounds pounds


5,763
2,560

28,814
12,802


6,430
3,203

25,722
12,814


10,933 25,120 25,681
1,516 21,194 22,623
9,417 3,926 3,058

9,917 21,177 20,092


Consumption figures from the Bureau of the Census Raw Wool Consumption
reports,
Imports from official records of the Bureau of Fcreign and Domestic Commerce.

1/ Consumption figured for January based on 5 weeks, February on 4 weeks,
and January-February on 9 weeks. No adjustment made for holidays.
2/ Weight of greasy, scoured, and skin wool added together.


-9-


*





WOCL-4


Table 3.- Movement of wool in primary markets, beginning of season to
February 28, average 1930-31 to 1934-35, annual 1935-36 and 1936-37

: : Average
Country Period :1930-31 to : 1935-36 : 1936-37
-: -: 1934-35 _
: : i .lb. Mil.lb. Mil.lb.
: Receipts at selling centers
Australia 1/ ...........:July 1 Feb.26: 743.1 740.7 748.3
New Zealand 2/2/ .......: ." 138.3 175.4 157.8
Union of South Africa ...: 214.4 184.8 197.1
Argentina '4/ ..........:Oct. 1 : 64.2 53-9 47.9
Uruguay ................: : 93.3 100.0 108.7
Total 5 countries ..... -: 1,253 1,2 4. 1,259.8

: rDisposals at selling centers
Aust ralia:
New clip wool /......:July 1 Feb.28: 535.4 5/642.5 623.3
Old clip wool 6/.....; : 7/ 32.2 25.6 21.9
New Zealand .............: 122.3 167.6 156.3
Union of So. Africa 8/..: :7/ 111.0 119.0 142.0
Argentina 4/ ...........:Oct. 1 : 56.8 48.8
Uruguay ................ : : 74.6 76.0
Total 3 countries .....:" : 51.4 954.7 943.5

Stocks at selling centers


Australia:
New clip wool ........
Old clip wool ........
New Zealand .............
Union of So.Africa,unsold
Argentina 4/............
Uruguay .. ..............
Total 3 countries......

Australia 9/.............
New Zealand 9/..........
Union of South Africa ...
Argentina ...............
Uruguay .................
Total 5 countries .....


S Feb. 28 163.6 98.2 125.0
: : 2.8 0.9 0.6
: ? ... .. --
: :32.1 5.6 7.8
S" 7.0 7.2 6.7
: 28.0 (30.0)
: 20.5 111.9 140.1
SExports
:July 1 Feb.28: 615.7 613.8 604.3
S : 139.3 172.2 156.8
: 176.6 161.9 162.4
:Oct. 147.0 135.7 166.4
S: 68.2 65.2 79.9
: 1,146.8 1,148.8 1,169.8


Compiled from cabled reports from Agricultural Representatives abroad and reliable
commercial sou; 's. The statistics in this table have not been converted to a
grease equiva~ic. because details are not always available monthly. Figures in
parentheses intk.rpolated.
I/Wool of season designated only. 2/Offerings at selling centers.
I/Converted from data published in bales in .'ool Intelligence Notes. Converted to
pounds by using Dalgety and Company estimates of average weight per bale.
t/At Central Produce Market near Buenos Aires where between one-fourth and one-
third of Argentine clip is marketed; adjusted to monthly basis for season beginner.
October 1 from weekly reports for season beginning July 1.
5/Includes 6,531,000 pounds destroyed by fire. 6/Carried over from preceding season
7/4-year average 1932-33 to 1934-35. _/Sales at public auctions only.
9/Estimates of Dalgety and Company.


-10-





WOOL-4


Table 4-- Exports of wool(greaso and scoured combined) from Argentina
and Uruguay to principal consuming countries, first 5 months new
season, October 1-February 28, 1935-36 and 1936-37

: Oct. 1 Feb. 28


Country of : anina _Uruguay :
d iAri enteina -37
destination :1935-36 :1936-37 :1.935-36 :1936-37 :

:il. lb. Mil.lb. Mil. Ib. Mil. lb.
United Kingdom ......... 39.7 44.5 7.7 12.7
Germany ...............: 15.9 7.1 12.2 8.8
France .... ........: 27.3 17.0 3.3 2.9
Italy ..................: 5.2 10.1 12.6 2.7
Belgium ................: 10.0 10.7 3.8 5.7
Netherlands ............: 0.8 0.6 2.6 0.9
Japan ................. : 0.4 16.7 1/ 22.9


United States ..........:(
Cen ada ................. (


29.9


52.5


0.6


22.3


Total
1935-36 : 1936-37
Mil. lb. Mil.lb.
47.4 57.2
28.1 15.9
30.6 19.9
17.8 12.8
13.8 16.4
3.4 1.5
0.4 39.6


30.5


74.8 )


Total .............: 129.2 159.2 42. 78.9 172.0 238.1
Other countries ........: 6.5 7.2 1.6 1.0 8.1 8.2
Grand total .......: 135.7 166.4 44.4 79.9 180.1 246.3
Compiled from reports furnished by Amrcrican Agricultural Attache' Paul 0. :Tyhus.
1/ Less than 500,000 pounds.


Table 5.- Exports of wool (grease and scoured combined) from Australia,
Union of South Africa, and New Zealand to principal consuming
countries, first 7 months new season, July 1 to January 31,
1935-36 and 1936-37

: ......-.uly -. Jan.31_- -_
Country of : : Union of New
destination Australia : South Africa Zealand : total
:1935-36:1936-37:1935-36: 1936-37:1935-36: 1936-37:1935-36: 1936-37


:174.l.5 212.6 3il. :16il.lb
: 174.5 212.6 34.8 16.6


Option Continent: --- --
Germany .........: 17.7 23.4
France ..........: 50.2 56.6
Italy ...........: 2.2 17.9
Belgium .........: 69.9 92.1
Netherlands .....: 12.3 8.1
Japan ...........: 143.7 11.7
United States ...: 10.4 49.9
Canada ..........: 1.4 2.0
Total....... : 432.3 474.3
Other countries..: -..._3 25.9
Grand total : 506.6 500.2


31.7
40.3
0.3
12.4
1/
3.5
1.8
1/
124.8
8.0
132.8


22.8
22.9
4.8
10.7
1/
44.6
3.3
1/
125.7
- 0.4_7
130.4


Mil.1b.
59.0
4.5
1/
9.4
1/
3.2
1/
2/ 4.8
6.3
4.5
91.7


Mil. b.
45.4
7.7
I/
4.1
1/
1.2
1/
2/20.5
10.8
4.8
94 .5


Mil_.lb.
268.3
4.5
49.4
99.9
2.5
85.5
12.3
152.0
18.5
5.9
698.8


.. 8.1 3.3 O, 4
99.8 97.8 739.2


Compiled as follows: Union of South Africa, Agricultural Attache' C. C. Taylor;
Australi:. and New Zealand, "Wool Intelligence Notos".
/ Not reported separately-if any,included with "other countries". 2/In addition
4,700,000 pounds wore shipped to Australia in this period of 1935-36 and 1,900,000
pounds in 1936-37 probably for transshipment to Japan.


United Kingdom


Mil.lb.
274.6
7.7
46.2
83.6
22.7
104.0
8.1
76.8
64.0
6.8
694.5
33.9
728.4


-11-




UNIVERSITY OF FLORIDA


3 1262 08861 5439


WOOL: FARM PRICE, PRODUCTION, AND MILL CONSUMPTION,
UNITED STATES. 1927 TO DATE


PRODUCTION
(POUNDS)
(MILLIONS)




450






400






"350





300
CONSUMPTION
(POUNDS)
(MILLIONS)
700


600


500


400


300


200


100


0


1927 '28 '29 '30 '31
*SHORN AND PULLED


U. S. DEPARTMENT OF AGRICULTURE


'32 '33 '34 '35 '36 '37


PRICE
(CENTS
PER POUND)




30






20






10





0
CONSUMPTION
(POUNDS)
(MILLIONS)
700


600


500


400


300


200


100


0


A APPAREL CLASS, GREASE BASIS
NEG JIOBB BUREAU OF AGRICULTURAL ECONOMICS


MILL CONSUMPTION A





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