OUR YORKSHIRE LETTER.

Gisborne Times, Volume XXVII, Issue 2673, 1 December 1909, Page 2

OUR YORKSHIRE LETTER.

A DOWNWARD MOVE IN PRICES

(From Our Own Correspondent.) BRADFORD, Oct. 15. Conditions in the wool trade change fast, and once more I have to report a marked alteration'in the kaleidoscope. Since X last wrote much has happened, and much against the interests of the growers, but in favor of users. Somehow 'wool never remains long at the highest point, and I am satisfied that unless'there be a shortage and a booming trade, it seldom or never will. I ventured the opinion last week that the first sign of weakness would come from Australia, and hardly were the words out of my mouth before cables arrived tehing us that' prices were down from 5 to 10 per cent. Such an announcement is indeed significant, and what it all means is somewhat difficult to ay.. The whole trade seems at the momentto be at the parting of the ways, and fur the time , being impending bn;ness lia.s been suspended, and consumers Hove more or less backed down. It- is now: simply a case of waiting until one sees what is going to be the upshot of it all, for all alike are sitting on the fence, unwilling- to do .anything. Some aro trying to make themselves believe that for ‘'‘spot delivery” the price of tops is unchanged, but I am just afraid that when the wool they recently bought in London is out of the combs and they come to sell the tops, that they , will have a rude awakening, for not only lias Bradford price never been within a penny to 13d per lb. of the level of Coleman Street, but prices today are down from id to Id per lb. for merinos. Even at this business is now in .abeyance, and all alike are waiting further developments. CHEAPER WOOL WANTED.

Anyone in close touch with the wool trade' during the past tw r o months could not but feel that the outstanding feature was the continuous cry for cheaper wool, and when prices soared skywards at the recent London sales it was the signal to those who were bought ahead to cry hands off, and they soon apopted that- course. Buyers in Coleman Street who operated were forced to do, but what they bought in the hope of being able to sell tlio same have met, so far, with comparatively little success, simply because users cannot afford to buy wool at what was established recently in Coleman Street. I have never believed that manufacturers were so bare ■of stocks as to compel them to operate heavily, and it remains to be Been if merchants and dealers who purchased can get out without loss. The burden of the cry both among f rench, German, •and West Riding users was for cheaper wool, and that is more so to-day. It’s all right enough wool values rising to a high point, but it is another thing getting back the cost of the same in ‘the manufactured article, and that is exactly the crux of the whole question. A strong wail lias been heard right away from the spinner to the fabric buyer about the increasing difficulty with high prices, and the latter lias, at •no time, been disposed to' help things along by buying anythin" to stock. A totally different policy has been pursued this last three months to w;hat obtained in 1899, when every fabric buyer placed orders and bought for twelve months ahead, but this time they have shaken tlieir heads ominously, and from the very first stoutly refused to follow the rapid upward movement of prices. A SERIOUS FALL IN T FUTURES. Continental wool markets, and especially France, have had a strong slinking up with a slump in “futures,” and since the end of last week conditions harm been precipitated which have already been responsible for the set-back in wool values at Australian selling centres. It is not altogether clear what is the real cause of tlie fall in futures, the general impression being that “bears” have determinedly made an onslaught by selling down the market in order in influence Australian prices. There can be no other incentive to lead to what has taken place, and “bulls” have been forced to unload. At the last London sales Frenchmen did precious little buying, it being frequently commented upon that two or three of the biggest firms were not half so active as they ware in July. As I have already said French buyers of the raw material have expressed ever since August their strong disbelief - in importing wool at current rates, and tlieir utter disgust was frequently seen from the way several talked when in London a good fortnight ago. They joined with many, Yorkshire importers in conversation, and shared the same opinion that importing wool on a parity with London wa.s simply absurd, and several there and then expressed the opinion that they would not buy a single bale until the prices came lower. Evidently the best way of attacking values* has been through the future market, and these have fallen like skittles. HOW FUTURES HAVE FALLEN. I hare watched the course: of Continental futures for years, and there is no doubt tliat they are made to do service in influencing prices both up and down. All through this year they remained fairly steady up to the beginning of August, When in sympathy with advancing wool markets and' an increasing enquiry for tlie raw material prices gradually hardened. At times both at Rauax and Antwerp transactions are heavy, and “bulls” feeling that things wore going in their favor operated to a considerable extent all through August .and September. But even these lighthearted gentry were beginning to feel that values could not for ever go in advancing like they were, and directly they perceived that the top had been reached they commenced to unload, “bears being only too ready to give values-a push downwards for all they were worth. The effect has been seen in a perfect “bear” raid, and values have fallen more heavily than since October and November, 1907. HOME TRADE AWAITING DEVELOPMENTS. As oould only be expected the back-' ward move at Colonial selling centres lias been sufficient to generate a very

tame' feeling, and business-lias slowed down considerably: 'I am referring;• .to the transactions in tops for 'spot delivery. The fall in prices lias nipped in the bud several important impending sales, and buyers arc no longer in the field prepared to operate. It looks to many os if there are going to be two prices for the next three months, namely, one for spot delivery, and one for next January onward. I feel pretty certain in saying that the weight of fine tops for present delivery is in no sense large, and the same can be said for fine crossbreds- Oonunissioii [w’oolcoinbGrs are- in: the- best position to know how fast deliveries are being made, and there- are no accumulations .with them. One of Bradford’s biggest topmakers said',, l'ast Monday, that they knew they would now lose on every bale they bought in London last series, but that mattered little so long as they could buv cheaper in Australia, and that firm will lift a vorv large quantity of material. Prices are down even for spot delivery $d to Id, and at a time like this there is no telling what a topmaker will accept when he receives a bid and wants to sell. Dealers feel their position, for tliey find it impossible to shift shabby scoured pieces and bellies, and I ain afraid some of the skin wools that were bought will rather stick. ‘ However, the present is not a time for anyone to get funky, for I cannot see how values can sensibly decline for spot stuff until later on in the year. Everybody is still busy- and will be, and with a big worldwide consumption, combs, spindles and looms will have to be supplied. In crossbreds there is again pronounced quietness, and prices are only about steady. Noils, too, are quieter, and it is possible to purchase at a fraction less than last week. I have an impression that holders aro going to meet the market, which seems to me to be the wisest policy.