LONDON WOOL SALES.

Gisborne Times, Volume XXVII, Issue 2667, 24 November 1909, Page 2

LONDON WOOL SALES.

CLOSE OF A MAGNIFICENT

SERIES

(From' Our Own Correspondent.) Oct. 8. Since, writing last the filth senes of colonial wool sales hare opine to a finish, and buyers are now away home endeavoring’ to turn to good account their recent purchases. \Ve are just afraid that a very difficult task confronts them, for the prices current in Coleman Street • proved to be- throughout the entire series oh a much higher level than either Bradford or Ro'ubaix. There seemed to be present many urgent needs that had to be supplied, and selling brokers had an easy duty to get rid of supplies. Tilde has been no series like the'last since September, 1907, and values, in many cases,< were higher than they otherwise would have been if users had not been forced to operate. There is no doubt that exceptional circumstances to a very large extent were responsible for exceptional prices, and it seems very doubtful if when supplies become larger they can be- sustained. However, throughout the entire series 'the greatest keenness was manifest to acquire the raw material, and, taking things as a whole there was' nothing wanting. . From first to last wool sold furiously,' and prices were realised which gave every satisfaction to all parties —except the buyer. "The series were remarkable for about 6000 bales being sent- back from various consuming -centres for realisation, and some handsome profits were made. Some buyers who could do without operating largely, displayed considerable reserve, but, taking the series as a “whole, everything passed off uncommonly well, the old. accumulations of shabby, undesirable parcels being shifted in fine style. Thus the warehouses have been swept clean of all stocks, and the trade is now ready for handling the coming new Australian and South African clips. AVe will waste no more space only to give an epitone of the senes, and when compared with the closing rates of the previous sales, the following alterations took place:— —Australian Wools.— Grease merino, superior, Id dearer; grease merino, average to good, l*d dearer; grease merino, poor condition, Id to ltd dearer ; grease merino, pieces and locks, 3d dearer. Scoured merino, superior, 2d dearer; scoured merino, average to good, 2d dearer; scoured merino, inferior, dearer; scoured merino, pieces and locks, Id to iUd dearer. Grease crossbred, fine, Ljd dearer; grease crossbred, medium, 2d dearer; grease crossbred, coarse, Id dearer; grease crossbred, pieces and locks, |d dearer. Scoured crossbred, fine, 2d dearer ; scoured crossbred, medium and coarse, lid to 2d dearer. Slipecl merino fine, lid dearer; slipsd merino, medium, 2d dearer; sliped merino, coarse, lid to 2d dearer. Grease merino lamlft’ Id dearer; grease crossbred lambs, Id deafer. The result- of the series has been to demonstrate an exceedingly strong position, and wool to-day occupies a most favored place in the commerce of the world. The way the raw material has sold is proof positive that- notwithstanding the heavy accumulations of the previous year, these have all disappeared, and tliere remain no longer any surplus stocks to carry forward. The exceedingly keen demand that was experienced was -undoubtedly the outcome of short stocks at Home, a big consumption, and the knowledge that fresh surplies could not be to hand much sooner "than the end of the year. At the same time the very high range of valuer has created a somewhat dangerous level for importers, and the memory of what took place -after the two previous booms is no doubt- giving - rise in the minds of all to a strong policy of caution. AVe certainly look for no slumu, but all the same to start importing wool on today’s basis is fraught with considerable danger,and it- will be surprising if,when supplies become normal, prices do not slightly recede. Another -big record clip confronts the trade, and being exceedingly good as regards quality, soundness, and length, demands a careful consideration. At the- same time business is good and likely to be. The trade of the world is certainly expanding. and the large additions of new mills and renewals' which are taking place across the Atlantic demands larger supplies of Colonial wool. -Both- in Yorkshire and on the Continent there is general briskness in all mills, and some large fines of wool will bo required to meet orders which are in hand. Therefore, while on the one hand there is a prospect of very adequate supplies, still on the other there js every indication of large weights being wanted, henoe it seems, to us that supply and demand is about equal. Prices are high enough, and t-o - all appearance we .are not likely to see such change either way for some weeks to come..

THE OUTLOOK

Messrs. 11. Dawson and Co ;> in speak•ing ‘ abofitk. the -outlook- ' ■ say“ The series just closed lias been marked by unusually strong demand inflated, values, and remarkable clearance of the year’s old stock. The legacy which it leaves is a new situation which involves serious responsibility. The past year’s record supplies hake been more rapidly c-xliausted than expected, and the interest will centre in the new season’s production and, its probable values. No one can doubt that the dangerously high prioes reached during tlhe past fortnight are the consequence of this early depletion of the available supplies, coincident' with a strong demand for urgent needs, which had to be satisfied regardless of values. Exceptional circumstances have created exceptional prices, and it can hardly be expected that such rates can be sustained under more normal conditions of supply and demand. The fact that we are facing a clip which, as regards quantity and suitability _ for combing purposes, promises to again break previous records, demands a careful consideration. : . Business is remarkably strong in all centres, and we appear to be in the midst of -a real expansion of trade, es-

peeially in U.S.A. j but the prices current for the raw material, to-day have not been, estab.ished for the manufactured article, . and at the moment it seems as though the handler of the raw wool must lose on the present- advance, or average it with previous advantages which tile raw material has had this year; But even though trade be brisk the question arises whether it can continue to flow with the same- intensity and volume if the present advance lias to be enforced. Past experience tends to negative such bright hopes. Most- wools (excepting the lower grades of crossbreds) are now practically" on a par with the 1907 level. Oil the other- hand, business is too gc-od, stocks too limited, and money too cheap for tli-e trade to take- too pessimistic an outlook, or to expect another American crisis as in 1907. The policy for colonial markets will constitute a serious problem for consumers. Tlio memory of 1907-8, and also 1899-1900 is not likely to fail. The reserve of the majority who were not compelled t-o operate at the past senes was very pronounced, and much caution will doubtless predominate in the business transactions of tlie coming six months”