LONDON WOOL SALES.

Gisborne Times, Volume XXVII, Issue 2416, 3 February 1909, Page 2

LONDON WO O L SALES.

THE FINAL VERDICT OF COLE MAN STREET,

(From Our Special Correspondent,

LONDON, December IS. Coleman Street'W 00l Exchange has seen the last for the current year of its regular series of wool sales, and another chapter is closed. The history of the colonial trade lor 1908 will stand out prominently as being marked by a considerable difficulty, a slump, and a partial recovery. Money has been both lost in heavy amounts and made in considerable quantities, lor those who had the pluck to go in and buy either in London or Australian markets from last March to July have come out all right, and several instances are known of members, of the trade doing well, notwithstanding the manv adverse factors which have had to be fought against. Pre-eminently the lesson of the whole year’s sales is that it is always safe to buy when .vool and tops are cheap, but never a wise policy to carry a lot of stock when prices arc dangerous. There are still a good few packs of JOT tops to deliver at 8d and 9d, at least not a few warehouses are full and deliveries waiting to be made of those stocks which were recently sold at

llid and 113 d, while scoured skin wools bought in Sydney this year in considerable quantities have left importers a clear profit of 41 d to 5d per lb. But what concerns us to-day is the record of the recent series,- and here it is some satisfaction, to be»able to chronicle the fact that every, descript-

ion, from locks to super combing, have participated in the rise. No one could sit in Coleman Street Wool Exchange without feeling that 1 far different buying spirit prevailed the room to that seen at any previous series this year, and the continuous activity of the Continent and America stood out significantly and offered a sharp contrast to the phlegmatic and vacillating attitude previously seen. The quantity available amounted to about- 180,000 bales. OF these, as

Schwartses’ point out, 169,000 have, been sold; 69,000 bales going for Home consumption, 80,000 bales to the Continent, and 15,000 bales' to America, leaving 11,000 bales to bo

•arried forward to the next series, these foreign purchases have helped naterially to reduce, the quantity of tool in sight, and there is now no ooso talk about brokers bolstering ip prices by large withdrawals, such is was heard in uu responsible luarters all through the recent sumucir. The holding-over (policy has iaid well the original owners of the aw material, and saved the trade rom more serious disaster. Looking over the list of advances, s set forth in brokers’ circulars, the nprovement in average may be said 0 be from Id to l.jd per lb for all escriptions of both merinos and rossbreds. Naturally the biggest lco is seen in tine best

descriptions, although medium wools, both grease and scoured, shared fully i: 1 the higher rates paid. What is as satisfactory a feature as any is that Australia’s new'clip sold remarkably well, withdrawals being very few indeed. From first to last the Continent competed keenly, and never slackened its pace, America only backing down a little towards the close when the character of the wools got perceptibly worse. The Home trade, all through the series, labored and ■struggled against a strong impression that the rise was too great to last, and as values for the combed article in Bradford never got up to anything like Loudon's rates, buyers from that

quarter had to act with both caution and reserve. Some of Bradford’s

largest operators have been liberal buyers at Australian centres since October let at sensibly less than London rates, and fortunately Worstedopolis is still working on this lower basis of prices. Several were quite prepared to purchase double the quantity they did, but they frankly admitted that they, saw no justification lor such increased rates, and preferred to take their chance till January, in the hope of being able to buy at lose either in London or elsewhere. Wo arc now able to see what have been the takings of the two most important sections of ihe trade—-Home and Continental—during the year, and it is shown that even the Continental trade., with all its • activ-

ty, actually took less than at the ifth series, while the purchases of die Home trade are a long way the owest of any series this year. Varous constructions can be put upon ;his fact,- and how far its action is ust'ified only succeeding events can ell.

The outlook is not so depressed as it was, notwithstanding that during the last fortnight in Bradford a slight ease has been seen. That centre is apt to overlook the fact that it now no longer is the sole determining power of wool values, both the Continent a«d American having an important say in the matter. Prices are not unreasonably high, and although we want to see a move at the manufacturing end of the industry, still we believe that the consumption is larger than, many suppose. Wo are certain to see light fluctuations, hut so far as ono can judge to-day’s rates will not show a great deal of variation just yet. The Bank rate at per cent., with a likelihood of 2 per cent., with the turn of the year, compared with 7 per cent, a year ago, is hound to help favorably wool prices, and particularly importers. THE BRADFORD MARKET. . AN EASIER TENDENCY. Already the shadow of the coming holidays is upon the maricet, and

things are assuming a quiet appearance. As briefly mentioned last week a distinctly easier tendency is everywhere in evidence, and prices are generally 4cl lower all round. There is no gainsaying the fact that Bradford to-day is still the cheapest market of the world, and even at that very lit- . tie business is doing. The fact of the matter is, there seems to bo now a tendency on the part of the majority to simply mark time, most topmakers frankly.stating that they are not particular 'whether they do more business or not for the time being. Wool from the recent sales is being taken in with considerable freedom, anil no time is being lost in getting it off to comb. Even this month some failing deliveries of tops have to be made, and that being so there is in evidence a good deal of activity. No new features are to ha noted, and the last two or tlireo market days have been decidedly quiet, even, lower quotations not being sufficient to induce new orders. At the same time it is not too much to say that there is sufficient hterest in the market to prevent kings slipping back a great deal. Bids made last Monday at 23d for 34’s lops wore refused all round the market, and nobody would sell under -’Bid, some wanting even 24d. Colonal Laught wool is arriving in moderates quantities, and everything looks 'cry cheap, compared with recent ourcliasos in London. Even these will not do manv importers the amount of tood that they should owing to tops being.sold forward at too low a basis. Spinners arc taking in some fair weights as stocks with them are very 'ow, but at the same time they could •lo considerably more if particulars ame to hand more freely. There emus now a general feeling to let things quietly rest until the turn of the year, and to all 'appearance wo •ire likely to see a quiet time well info January. Real actual yarn and niece trade business is moving much 'oo slowly to mean increased activity and a'further upward tendency 'd values., and we shall do well if today’s rates are maintained. The. | orivate cables from Australia and ! Buenos Aires report loss ’keenness aml j ’•agerness to purchase wool, and here and there loss quotations are being ! amt over. However, there is nothing : as yet to warrant tile Id decline ; which- lias taken place in all quail- j ■ities of merino and crossbred tops, j Mohair is quiet, but prices are firm.