LONDON WOOL SALES.

Gisborne Times, Volume XXVII, Issue 2484, 24 April 1909, Page 3

LONDON WOOL SALES.

OPENING OF THE SECOND SERIES.

BOTH MERINOS AND CROSSBREDS

AGAIN ADVANCE

FAVORABLE OUTLOOK

(From Our Special Correspondent.) LONDON, March' 12, 09. Another wool chapter opens with the beginning of the second series, and all along the lino interest and activity is manifest. The trade to-day is in far different fettle to what it was this daytwelve months ago, for instead of buyers coming together sad and despondent on account of lost fortunes they are in a cheerful mood, feeling satisfied that business is good and profitable. The vacation has also been a very 7 inspiring one; in fact, the last month lias seen a bigger volume of business transacted than seeme-cl likely when the January series closed. Practically all brokers and merchants who bought to stock have had tho privilege of clearing out, consequently they are found to-day in another buying mood, everyone coming together last Tuesday wanting to operate. I don’t think I can do better as showing readers the progress made during the vacation than by- asking them to look carefully over the following table in which I show the price of various standard qualities of tons when the last series finished, and at the opening on Tuesday: Feb. 6. March 6.

The. above shows that prices have responded to the stronger advices from centres abroad, and if Coleman street bad not come up to general- expectations, it would soon have had its effect upon consuming centres. Under such conditions tho various sections of the trade came to London prepared for a higher range of values. QUANTITIES AVAILABLE.

The question of supplies is an important one, and on all hands arrivals are pouring into this country and going forward to manufacturing districts at”a very rapid rate. In fact, a study of the table below shows that the quantify of wool so far received this season is a record, and the direct forwardings are also larger than at any previous period. This shows that the trade must be in a fairly healthy position, otherwise raw wool would not be moving forward so quickly towards consuming centres. So far this season there has not been the slightest financial pressure, the wools coming to hand being cleared with all possible speed. There is no doubt that some speculation has been indulged in during the last few weeks, a large quantity- of tops and yarns being bought under the impression that they were worth buying. The best reports from English travellers in Germany have come to hand during the past week that we have seen for over twelVe months past; and this no doubt has helped to stimulate the market for raw material. Nobody seems to think but what" all the wool available this year will be wanted, and men are arguing that- if prices are going to be higher thev had better have something in stock. There is no doubt- that plenty this series are going to operate to the utmost exteut of their capital, for if trade only improves, the woyl will be worth more money before the next Australian clip will be available. The following table shows tho gross arrivals since the- close of the first- series, what quantity has gone forward direct, and also the net available quantity for the current series:—•

A BRISK OPENING

Last Tuesday saw* Coleman Street Wool Exchange filled to its utmost oaacpity with buyers hailing from all quarters, a record contingent coming from America. There certainly was as much interest manifest over the opening as ever, and not a flat note was. struck anywhere. The three catalogues were representative ones, and comprised a fair average selection of merinos and crossbreds, the latter ]>r,edominating. From the very commencement competition was keen, there being no hanging back whatever. Buyers had eome ready for. purchasing, and as several said they wanted wool at one price or another, and were going to have it. Germany proved very active, and certainly led the van so far as merinos were concerned, also competing keenly for good New Zealand iuilfbreds. This feature no doubt is going to rather upset some BradforcUbuyers who always take the bu’k if not good enough for America. All medium conditioned merinos found both the Continent and the home trade very Keen, and hardly anything was withdrawn. France did very little because the hulk of the merinos were not fine enough. Nearly all the West Australians went to Bradford bids, and throughout the sale competition was exceeding y keen, with nothing hanging fire. Then compared with the close of the previous series, the following changes were seen:

Since the opening a brisk lime lias been seen, the initial advance being fully maintained. The best feature of the” series is the .good all round competition, all alike bidding keenly. America is fairly active both in merinos and crossbreds, but their special wools are no dearer than last series. Germany continues to operate on a large scale, and the Pmila Arenas Until on the opening day and yesterday, met with a good measure of' support at their hands at fully- ,5 to 7 A per cent, advance. THE OUTLOOK. Messrs H. Dawson and Co., in (speaking about the outlook say -“ihe interval has been characterised by considerable- activity in most branches of the industry; *and notwithstanding the large direct arrivals to manufacturing centres from the Colonial and Souih American markets, there has been, no tendency towards weakness nor any signs of"glut in the top market. On the contrary,’ tops are generally overdue for delivery, and owing to heavy new contracts being made, prices have hardened for practically all,softs. There is cllubticss sjkiKw anticipatory- buying,

which is tho least satisfactory feature of the moment, but which is attributable to the strong confidence in values existing in many quarters. Tho Bradford market has been strengthened by the demand from (J.S.A. for cased fleeces dn crossbred wools, which lias relieved importers of any surplus stqpk. Consequently, the outlook for the present series is a favorable one, if a hungry demand from topmakors and improving prospects in the manufacturing centres count for anything. U.-S.A. has been a great factor during the past two series in tho best wools, and at remains to be seen whether they can im-prove-on the high prices paid in December for merinos, and ‘in January for crossbreds.

There, is a very full representation of U.S.A. buyers here, but arrivals at Boston from Colonial markets are large and this may modify the extreme keenness which has characterised their recent operations. Tho American prospects, however, appear to be good, and their consumption of Australian wools is undoubtedly increasing. It is.a long time since such close attention has been given b.v the Continental section to crossbred wools, especially in the medium grades. They wore keen valuers to-day. This support both from German and U.S.A. buyers augurs well for crossbred values. , , Tho London market will also benefit all round from the fact that tho buying power of the world will now be focussed hero until September, tho season in the Colonial and South American markets being practically over.”

70\$ Colonial tops 254 264 64 s . ) y if 24 254 60’s ,, ,> super 23 244 56’.s 184 194 50’s 16 164 46’s 134 14 40’s m 12 36’s j • .* > 104 Hi

Quantity Net (; vp*" forward quantity arrivals. d i-root. available. Year. Bales. Bales. Bales. .1909 422.241 236,500 194,500 1808 340.666 109,500 201,166 1907 397,339 233,000 167,300 1906 306,286 178,000 331,800 1905 365.997 171,500 179,500 1904 271,938 110,000 168,000 1903 278.300 120,500 167,000 1902 252,100 105,000 162,000 1901 216,000 92,000 218,000 1900 263,000 10S,000 174,000

Grea«e fine -orsbd. 3d higher medium ,, id to id coarse id ?> Slipe crossbred id (o id Lambs (.all equalities) id to id