OUR YORKSHIRE LETTER.

Gisborne Times, Volume XXVI, Issue 2384, 28 December 1908, Page 2

OUR YORKSHIRE LETTER.

WOOL PRICES VERSUS FIGURES .[From Our Special Correspondent.] BRADFORD, Nov. 13, 1908. The wool situation is in a very interesting condition,, and as the' sales progress in Australia, it is becoming more evident than ever that; the raw material occupies ia sounder position than was generally supposed. It is so easy to measure the horizon with one’s own immediate outlook, that the real position is overlooked, and the governing factors are lost sight of. That seems to be to a very large extent, the position which Yorkshire users have for some time been occupying, and when wool was cheap and tops at a low figure, many failed to take full advantage of the opportunity. During the last fortnight there has been increasing evidence that the dawn was breaking, heralding a brighter day in the wool trade. The experience of the past twelve months has .been a terrible one, and only those in the trade or coming into close contact every day with topmakers, spinners,, and manufacturers could form an adequate conception of the rough experience which many have had to encounter. But it seems —if one may judge from the immediate outlook—as if the end of the recent. rough experience accompanied with financial loss is not yet at an end with some, for in several cases Bradford topmakers have again seen fit to take upon their shoulders an unnecessary burden by selling forward what they have not got. So recently as last September “fixtures” were dealt in on a basis of 21 d for super 60’s and 22d for 64’s tops, . those sales being again repeated at the end of October, while this month a good few thousand packs in the aggregate have been sold forward for next January to April and May delivery at 21]d and 22 ]d for the same qualities named, some importers, however, obtaining up to 22d for super 60’s and 23-ad for 64’s, but business lias not been done on the scale of the previous fortnight. VALUES CONTRASTED.

The course of prices since the slump commenced, exactly a year ago, is well worth reviewing, for, since the lowest, pitch was touched last May sound progress has been made. The rise may not have been so pronounced as some would have liked, but it should always be borne in mind that after a serious fall it takes the trade time to turn the corner and negotiate the dear stocks which it is usually landed with. There are signs that we have seen the worst in the wool trade, and if the slight improvement which is discernible in general textile manufacturing conditions only materalises as many expect, then wool looks like being a tritie dearer. Neither the present price of merino or crossbreds can bo regarded as hindering any trade development, but on the other hand the reasonableness of the raw material should act .as a stimulus to the textile industries of Yorkshire, the Continent, and America. The cheapness of money has, in the past, also been an important factor in stimulating an industry like the wool trade,, and this should now again be of material assistance to those operating both abroad and in London. The following table shows how values have moved during the past twelve-months, and it will be remembered that in November, a year ago, the fall was just beginning as the result of the financial crisis in America:— "

FORWARD SALES OF TOPS. The question of selling forward has recently engaged the attention of the trade a good deal, and I am afraid that contracts have been made which will cost sellers at least £1 per pack, if not more. If reports are at all reliable, then no wool has been picked up in any Colonial market to deliver a super 60’s top under 223 d. This week's Australian mail has brought the writer samples of several of the biggest clips which were sold at Adelaide's first sale, and the prices paid are altogether above the average limits of these “fixtures" sales, every lot examined being above what can be made to-day in Bradford for “spot” delivery. We know by cable that the two succeeding sales have shown a further hardening tendency. Below is a table which shows what “futures" have been sold at during the fall for the past three years:

tops 15 -15 i 14i-14§ 8|- 9 The outlook as far as one can see is somewhat brighter than was the case a few weeks back, and the big business done during the last ten

days in Bradford means that *a fair weight of wool will be required both in London and abroad. It is certain that, there are no stocks in Bradford, and the amount of tops offering for immediate delivery is certainly, under normal. Whatever weight oi wool is availably at the forthcoming series in London, the trade will be quite able to lift every bale, .and it looks as if an advance would be registered. At the same time there is both among yarn spinners and manuifacturers . still plenty of room for improvement, for the former cannot make any impression upon buyers in regard to increased prices,, and the difficulties of spinners are as pronounced as ever. The raw material is forcing the pace, and whether or no it can induce yarn and piece orders remains to be seen. -A WELCOME ADVANCE.

The past week has been a welcome change to the monotonous conditions which for months have obtained, the whole temperature of the Bradford industry having risen, the improvement perhaps being most in evidence in raw materials. . Towards the end of last week close observers discerned a marked improvement, inquiry being prettv general, some heavy transactions taking place. It was plain to be seen that practically the whole stimulus came from the very strong reports lroin Australian and Buenos Aires selling centres, users seeing the strong demand for the raw material at hardening prices led the -majority to cover wliat business they had, and in many cases tops have been contracted for well into next year. A •large weight of super 60’s have been recently as last Friday good 64’s were bought at 22] d. Such prices are today entirely off, and nobody will consider an offer under 22 ]d and 23 ]d lor the two qualities already named. It lias been really refreshing to feel the optimism which is expressed by the majority, hut those topmakers who have sold forward at 22d and under for super 60’s, and 22]d .to 23d lor 64’s, cannot be in an envialble position. As already said the movement is largely the outcome of the rising tendency of wool at selling centres abroad, >and users convinced that there is nothing to gain by remaining uncovered have bought freely. Good super 60’s tops are well worth to-day 22]a penny more for 64’s, and 24]d to 2nd for 7U’s, with “futures” practically the same jirice. Raw wool has been in strong request, and it is surprising what/ smallness of stocks are met with. It is now more than ever patent that for months users have been sailing very near the wind, and that the raw material i s going to be wanted in fairly largo quantities in the immediate future. Nobody seems to have more than they can comfortably get through, while many are prepared to buy freely at current rates. There has been larger weights of tops sold forward in a quiet- way than is generally supposed, but the difficulty is in finding adequate supplies until the time for delivery comes round. Naturally spinners are trying to discount the move, and complain bitterly that they can get no response for yarns. More offers are being made, but as a rule prices are too low for acceptance. The improvement is to a large extent confined to the raw material, but this is bound ultimately to make itself felt both in yarns and pieces. Mohair is altogether inactive.

MOVEMENT IN VALUES. May 9. Nov . 10 1908 Nov. 10 1907 (lowest) 1908 d. d. d. 70’s Colonial tops 31 . 22 241 64’s colonial tops 30 21 231 60’s colonial tops sup.29 20 221 •56’s colonial tops 25 17 18 50’s colonial tops 22 15 - 15 46’s colonial tops 17 101 12 40’s colonial tops 16 81 103 36’s colonial tops 15 8 10

For Jan. to April delivery. 1906. 1907. 1908. d. d. d. d. d. d. 70\s Colonial tops 25^-26 64’s Colonial 30 -304 234-24 tope 25 -25 J 60’s Colonial 284-29 22-23 tops super. 24 -244 60’s Colonial 274-28 21 -22 tops ord.... 234-24 262-27-4 29 -214 56’s Colonial — tops 22 -224 50’s Colonial 24 -244 174-174 tops 20 -204 46’s Colonial 204-21 144-142 tops 164-164 40’s Colonial 16 -164 102-11 tops 154-16 36’s Colonial 154-154 92-10