LONDON WOOL SALES.

Gisborne Times, Volume XXVI, Issue 2089, 15 January 1908, Page 6 (Supplement)

LONDON WOOL SALES.

OPENING OP THE SIXTH SERIES lahge quantity ayah,able. BOTH MERINOS AND CROSSBREDS SHOW A GENERAL FALL. THE CAUSE OF RECENT DEPRESSION. (From Our Special Correspondent' LONDON, Nor. 29. There never was a time in the history ot the trade when more interest was centred around tile course o. wool markets than is seen it- present, everyhody straining their eyes to see what is geing to happen. All readers have been kept posted with the general course of wool markets on this side, and the fall in prices has been so material in Bradford, on the Continent, and America us to make it absolutely certain that prices would show a fall in Coleman Street. No matter what the decline is, the situation cannot really be called weak, for after all the slight reaction is more the back wash of the financial crisis in America and the burst up there, than from any inherent weakness of the -article. Since the fall -there trade has gone on just the same, and there has been no less turnover bv spinners and manufacturers. Hence I say that- all the weakness has arisen from outside sources, and if matters had been ■really bad, the fall would have been much greater. I don’t think I can do better than show readers what were ruling prices at the close of the last series of London sales, and what are current quotations for the same description of t-ops: Oct: 4. Nor. 29. DESCRIPTION d. <l.

The -above shows that the fall has been an all round Id to 2d per lb., and I say candidly that trade is all the better for it, for at the last series of London (sales a strong feeling of nervousness had been engendered because prices were regarded as dangerous for merinos. QUANTITIES AVAILABLE. The question of supplies is io-duy an important one, and the currentseries of wool sales have in no sense begun too soon, because wool is badly wanted. I should say that the trade generally is nearer the sheep’s back to-day than was -the case last year, and many are glad of the opportunity to buy. It will be seen from the list,-of quantities available that more wool is available this series tlnu at the corresponding sales a year ago. These are pre-eminently auctions' w here merino wool will largely predominate; many well-known clips from Australia being offered for the first time. The quantities on offer are as follows, and I show especially the quantity of New Zealand biles, which arc practically all crossbreds, and which are taken out of the net total available:

i *This ivas the slump year, tlio last series beginning on October 9 th, and finishing on November 3rd. It will be seen from the -above that lnoro wool is available this series than since 1901, but the trade unlike then •has no wretched incubus to work off, stocks being completely exhausted. The larger supplies at present available are undoubtedly due to an earlier shearing season in Australia, and if the financial outlook was only a little more cheerful, f lie present series would have been very little different to the last. The situation is to-day waiting upon London, and the course of prices in Australia should stimulate Coleman Street to do its very best. FEATURES OF NEW CLIP WOOLS The opening day of the sales brought together a. large concourse of buyers, and if numbers were anything to go by then a good opening was assured. But such cannot be relied upon, for 1 gathered as I went round valuing in -the -morning that a very indifferent feeling possessed the majority. One could not help but bo struck with the marked difference in the attitude of men at the opening of the present series, and in September. Two months ago it was patent to everyone that it was going to he “hammer and tongs” with a vengeance, where.is last Tuesday buyers appeared callous and indifferent. I firmly believe -that many had .instructions to go to London, value as usual, hut not buy a single bale till their principals saw how things shaper!. The three catalogues submitted word above the average for an opening day, the “new clip” merinos salting (lie entire offerings very nicely indeed. I was particularly struck with the clean, well-grown character of many of the offerings, and buyers appeared pleased with the prospect of securing some gr:d. well-grown wools. Two clips from South Australia were in delightful condition, being very deep and sinlty, and just the ticket for America. The pity is that our American cousins are not here, otherwise I am certain they would have fetched a penny more. Iliverina wools also were Al. and better style and condition I v never saw. At the same time I think while Australian “new clip” merinos are finer they nro shorter, and w probably “noil” a little more heavily than last season. They were very attractive in appearance, and it only J needs a srood -t.ra.rlw trv

TOTAL MONTHLY SHIPMENTS TO UNITED KINGDOM.

A FLAT OPENING. At four o’clock Coleman .Street Wool Exchange was packed, and tho b ill was set rolling very quietly indeed. Hesitation was a very pronounced factor, -and bids came at times rather reluctantly. It- was soon apparent that buyers were operating at a full penny less on good grease t-h in last- scries, and in some cases more. Where 13U1 would have been paid in September without any compunction. 12d was the price bid, and at the most 12.U1. Competition was anything but- keen, although thehomc trade took the bulk of tho wools catalogued. Withdrawals were very froquent, especially in good high class Queensland 1 scoureds; in fact, times the sale dragged heavily. AVhen compared with the close of the last series merinos showed a. drop of 10 per cent, fine and medium slipee the same, and coarse si ip os 71 to 10 per cent decline.

The opening results were about what were expected, and no surprise was expressed at the fall. All 'alike recognised- that September prices were extravagantly high, and that some readjustment was necessary. Since the opening a much better tone has developed, the second sale being a vast- improvement on the first-, competition being more evenly divided between the home and Continental trades. The initial sitting provided a basis to work on, and that was needed. The daily selection has been more comprehensive and a. few lots have, been taken on- American account, I can’t say that prices are much better on tho opening, but bidding is keener all round, and there is more spirit about the -room, with fewer withdrawals. Very few greasy fleece crossbreds are available, and these are selling well at -Jd to Id fall. Taking things 'all round, shabby, faulty wools are faring the worst and these are down Id to ltd per lb.

THE OUTLOOK. Messrs H. Dawson and Co. writing about the outlook, say: —“Since tho last auctions we are face to face with an (altogether new situation. The exceptional prices of last series were due to exceptional conditions, , and some reaction, or rather adjustment, was inevitable. Unfortunately the far-reaching effect of the American financial crisis -has accentuated tho reactionary movement. Dear money has naturally checked the flow of demand. Consumers, -remembering tho effect of financial stringency in 1899-1900, have become extremely cautious. Consequently the buoyancy which has for twelve months past characterised our industry has been displaced by nervous anxiety, and a quieter tone. Happily the reports from all European centres indicate most conclusively that our industry is in a sound and healthy condition, and is likely (thanks to several prosperous years) to suffer less than most commercial industries. Aloreover tho stocks in consumers’ hands generally are at the lowest possible working point. Contracts for next- year’s requirements in tops and yarns, which would have been freely negotiated ill September but for the sudden spurt in values, are, in the majority of cases, -iii w aiting -to be placed l . The present delay appears,to bo due more to Jack of confidence than to any difficulty as regards prices. In fact the general caution which prevails is in itself the best security for an early return -to better conditions. It is (reasonable to expect that the present series, by -the establishment of a- basis of values, will help to restore confidence, and put an end to the uncertainty and stagnatijn ot the past weeks.

Several facts of a, satisfactory nature should be remembered. Merinos are now approximating more nearly to the moderate values of twd re months ago; it seems probable that there will be a slight all round decrease in this season’s supplies; an I it is generally -agreed that anotner good season for worsted fabrics nay bo expected. The stocks of merino tops in German combing mills for last month, were extremely lo.v, amounting to a little over three million kilos only (La Plata and Australian combined), which is the low<sfpoint touched for many years. Crossbreds are in a state of nebulous- uncertainty, and users ha-, e awaited the settlement of values on a firm basis. -Buyers have been standing off so long, that medium and coarse grades have declined to a level which is unjustifiably low as comp iled with'finer sorts, and a shim reaction is more than possible he lire long. Altogether, despite financial t gbtness, the balance of evidence is in favor of a hopeful view, and of the niainetnu-nco of to-day’s level.” BRADFORD WAITING Ul’*>N LONDON. Bradford to-day is in a s'a*e of expectancy, everyone waiting ; > no what London does. A firmer ma'l.ei in Coleman Street can have a Wonderful effect upon conditions here, for lately very little indeed has been done. “Spot” sales have been entirely of a shopping character, rhe principal business consisting of supplying only very pressing needs. Many spinners who have pivvoi.dy fixed up contracts begin taking in their top purchases next month, consequently they are very auioli opposed to p lying more than vJ.at They have previously bought at. It is rather difficult to say what- a good super 60’s top is worth, though a r. an can pick up quite easily a good combing at 2s 3]d. Practically spekmtoday’s prices arc about the same as thoso -ruling for, -next year's delivery and to all appearances very little is

A good deal now will depend upon tho course of things in London during tho next- two weeks. A good series will to a very large ox r m: re move from the trade much <•[ the fear and’ timerity whoili has latol> clogged, the trade. There is <onlidonee about- the future of wool prices, but- it is not- so very pronounced in quality as to lead to any big purchases either on present or future account. The best thing that could happen to the trade, would be some relief in financial quarters, and a lower bank rate would put everything right, The situation is therefore more or less of a semi-stablo character, Bradford simply wanting to feel the pressure of some outside stronger force when tilings will -respond, and that quick. The consumption of wool is fully maintained, both topmakers and spinners .still being busy. Prices for the moment have stopped falling', and the news from Australia is such as to cause holders to refuse lower bids. Deliveries are being made both of tops and yarns, and nothing is -nocumulating. Mohair keeps very quiet, and hardly anything is doing in this department. Capo descriptions seem utterly neglected, Turkey average being the favoured article owing to its spinning quality. Spinners still keep busy, .and manufacturers have not yet felt, any slackening in the call for pieces. There are more rumors of failures, and this does not help to stimulate the market at all.

70’s Colonial tops 31 29 6 i’s 30 2S 60’s .. .. super. 29 27} 56’s .. 25 24 50’s .. 22 21} 46’s .. ■17} 165 40’s .. 16} 15 36’s .. 155 14}

Totil. New-Zealand. Buies Bales. 1907 125,000 15,200 1900 107,500 17,700 1905 109,800 15,900 1901 79,000 15,400 1903 87,000 32,800 1902 10J,00o 45,800 1901 233,000 92,000 . 1900 *360,000 122,400 1899 100,000 28,800

Glutton Lamb J3eei. January 19*2,224 2S1,178 19,643 Kebru arv 225,125 25S,433 13.S34 March 238,219 415,003 16,955 April 157,142 441,297 18,253 Mil v 1.80,719 397,250 15,424 Juno 161,906 354,959 IS,494 July 230,667 30S,65S 40,692 August 202,2S8 201,326 26,371 September 176,679 79,271 16,739 October 25,339 0,050 930 November 78,074 4,518 2,906 December 05,064 52,226 6,619 1,933,440 2,800,769 190,890