LONDON WOOL SALES.

Gisborne Times, Volume XXVI, Issue 2227, 26 June 1908, Page 1

LONDON WOOL SALES.

OPENING OF THE THIRD SERIES

ANOTHER FALL IN MERINOS AND CROSSBRED.

[From Our Special Correspondent LONDON. May 15.

It is probobly no exaggeration to say that novel' before in its history lias tilt* colonial wool trade been in quite so interesting a condition ns it is to-day. The fall in values lias been so rapid and bo severe that onorinous losses have boon suffered all round. Nor do holders Bee which way to look for comfort. This week has seen the opening of the third series til colonial sales, but before entering into a description of that big event, 1 had better state briefly tho circumstances which have transpired to make that event of world-wiuo interest and concern. It is well known to every reader of this issue, that during the interval, all consuming centres alike have fallen to pieces, prices have slumped, and instead of wool going into consumption at express speed, pronounced contraction is tho order of the day. Things in Bradford have been all through 'the interval, both disorganised and demoralised, while 'Continental ‘‘.futures” liavb also slumped heavily. This means that ooiisumors, instead of being prepared for the series as they have been for many years back, arc to-day slack set up, and as much concerned to know tho fall as they recently were to know tho rise. Men at their end of the world have all along said they wero fast with it, and that is true. I. am just a bit afraid that through tile past two years, all yarn and fabric buyers have bought a little too much;'in fact, a year ago they were just ns keen to put on contract orders for yarns and pieces, as they are today in an opposite direction. This means that consumption has at last had to give way to universal depression ; and standing machinery, with mills only going four days a week is everywhere in evidenco both at home, on the Continent, and America. This simply meant that when buyers assembled last Tuesday for the opening of the sales, they wore thcro more as spectators than- anything, and while no doubt they will bo part buying, still there is not that prospect of a big enquiry that I should liked to have seen. However, buyers turned up in good force, prompted, no doubt, with a desiro to see how things were going to shape. General expectations favored a fall, but how far things would decline, was a puzzle that everyono was waiting to see solved. A SERIOUS FALL.

To give the reader* an intelligent conception of the general movement in consuming centres I give below a table showing what were current values for leading descriptions of Colonial tops when tho last series finish ed,. and on tile opening day of t' o present series: — April -May

T!ie question of supplies is a very important one to-day, and all the more so because the Importers’ Committee have decided not To offer 80,000 bales, but to carry them forward to the next July or September series. Their action has been both approved and disapproved, just according to what speculation men look through. When this was announced it had the effect last week end of stopping tho rot in Bradford, topmakers no longer selling forward for a fall, ceasing to offer altogether unless they could get id. more. It is suggested that tho prospect of all this wool being carried forward moans an undigested dead weight on tho chest of (the trade all the time, and that the current series will be flatter in consequence. That remains to be 6een, and only time can determine how far brokers wero justified in adopting that court© of action. However, things could not get- worse, and there is just ia, chance of a, turn for the hotter coming before the July sales. Everything: depends upon orders being placed, and if they aro wool prices will soon respond.

BETTER START THAN EXPECTED. Tuesday’6 salo brought together a very big attendance of buyers, Coleman- Street Exchange being crowded. Everybody seemed to have turned up for - some “cheap” wool, and a far different spirit was in evidence to what lias lately been seen in Bradford. Olio almost stepped out of a refrigerator to summer beat if tlio spirit and tone of the sale room bo compared to the depressing atmosphere lately felt in Worstedopolis, notwithstanding a further decline lias to be registered. Even the significance of that is toned down when wool is taken - freely, and thero is life and vitality about the saleroom. Tlie catalogues were decent, -and the selection fairly representative both in merinos and crossbreds. The fine wools were mostly Port Phillips and.Queenslands, with a fair sprinkling of Capes. One could not help being struck with the spirited bidding from the start, and especially on Bradford account. Tho initial sale was vastly different to the beginning in 'March, and evidently men -had come prepared to buy if the price was right—everything seemed t 0 hinge thero. Continental representatives were rather quiet except for a few lots of merinos, but then the wools were hardly their stamp. From start to finish tliero was no want of tone, and everybody seemed pleased with the opening. MERINOS.

These sold rather irregularly. The one clip from Victoria made prices practically equal to the close of March, the wool being of splendid character, light, sound, and first class in every particular. Average merinos sold "freely enough, but generally, showed 10 per cent, decline. Tho demand at this level was keen. CROSSBREDS.

It is here necessary to differentiate a little. The bulk of the offerings Were of coarse quality. Anything good ‘ showed only 10 per cent fall when compared with the close of last series," but less desirable parcels, mostly farmers - ' dips which were shirty frequently declined 12. V to 15 per cent-. The .feature in regard to these wools was the strong competition and keen bidding on .'Bradford account, many evidently thinking the time ripe for buying. Slipcs made not a very good display, and these showed 15 per cent decline.

• After the sale the feeling generally was hopeful, and the way. Things had gone seemed to give satisfaction. Naturally soiling brokers and importers could not look upon things as if there had been an advance, but all the samo the initial sale gave one the impression that tilings wore grounding, and directly it is felt that the bottom is touched with confidence restored, and wooll will again soli freely. 'Tho succeeding sales liavo passed off with thcTsamo good spirit as soon at the opening, and prices are all well maintained. iS'omo seem to think that the series liavo begun too well, and tlmt the pace is too keen to last. That just depends upon tho reserve buying power of tho trade. Complaints are hoard of a hitter charac-. ter from all sections of buyers about trade being vory bad, and the Continent is generally very slack set up •and doing next to nothing. At home they say they have dear stock which they cannot movo oxcopt at terrible losses, and They are not in form for buying, so whether or no prices will remain steady, harden or givo .way further it is very difficult to say. Time only can settle tho point. THE OUTLOOK. Messrs. H. Dawson and * Co. in speaking of tho outlook, say “The basis of values established today lias, been more satisfactory than oxpectod, and should have tho effect of restoring' confidence in manufacturing centres. During tho past interval transactions have been very limited in every branch of the trade, but it is apparent that legitimate and absolutely necessary requirements will not begin to assert their supremacy over more speculative movements. Tho position is still hampered by the weakness of credit, and prospects are complicated by the impressions which tho anticipated largo quantities exert on people’s minds. Tho effects of heavier stocks in London is consequently being fully discounted. It must bo remembered that at least 150,000 bales less have been sold ill the colonial markets this year; these would liavo been otherwise in flic hands of tho consumers. It is much better for the industry that they are unsold, and that users,arc so much less stocked. Moreover, It is certain that there aro less tlian normal stocks of raw wool in the manufacturing centres. In tops there are rather largo miscellaneous holdings of cross-breds, especially on the Continent, but the stock of merinos is alinose seriously small. The reports from the combing mills in all European centres testify to this, and also to the fact of a minimum quantity of wools (for the time of the year) remaining with tliom to comb—Jess than for many years past. . The early and rapid absorption of the year’s clip from October to January'has not been sufficiently realised. There is reason to believe that manufacturers and spinners wero seldom, if ever, working with less margin of stock, purchases having been, made with great caution and in retail fashion for months past. All eyes have been contrcd on the visablo stock, and especially on that existing in Buenos Aires. The stock there is, however, not so large as lias been generally, imagined. The “a la baisse” movement in the Terminal markets has probably achieved its remarkable success (which has thoroughly demoralised legitimate trade on the Continent) by emphasising the stocks and belated realisations of River Plate wool. The success of the “bears” and the large profits gained liavo made them bold, and the movement is still alive. It seems overdone if one takes into account the aotual quantities available—not too large in raw wool, and abnormally small m tops. A few large operations calling for deliveries (which as not unlikely) might easily turn the tide strongly in the opposite direction.

The expectations of a good clip next yoar in merinos, and the. fact of reduced buying power (owing to recent losses) will naturally tend to keep prices at a moderate'level, and this is to be eminently desired for tho industry. ißut tliere is no doubt about the fact that tho stocks of combing wool and tops available during the next six months are small, and would bo seriously small if the industry were working at a full rate of consumption. In crossbreds, tho position is rather more difficult to interpret, but hero also much emphasis has been put on stocks, which are mostly visiblo, but which aro not within cry of the stocks of 11101-2, when the English, South America, and New Zealand wools had reached an accumulation that blocked storage capacity in Yorkshire. There

are no such stocks in Yorkshire now. The most serious tiling is the decline of consumption during the past two months, duo To lack of new business. The far-reaching financial disturbbuncos, the general depression in the great industries of tho country, and the losses of capital in our own industry, liavo crippled demand. But after all, the huge woollen trade, with the world’s growing deni aml for clothing, and hotter clothing, cannot remain long stagnant, especially as the slackness it not duo to large overstocking of goods as in 1900, hut rather to tan extreme caution owing to high prices, and later to a temporary break of confidence. Consequently, the low values now ruling should more quickly than usual (after such a fall) bring out good demand, with a more staple level of values.

dinury gas pipes and mantles already in the house. The light can bo used for cooking, heating, and also lor gas engines.

DESCRIPTION cl. d. 70’s Colonial tops 25 22, (34’a ,» 21 21 60’s „ ,, super 234 20 60’s .. ordinary 23 194 58’s „ - 22 19 56’s 20 17 50’e i6 j 144 40’s „ 12 104 40's „ „ 10 84 36’s » » 01 a SUPPLIES.