WOOL IN 1909.

Gisborne Times, Volume XXVIII, Issue 2737, 16 February 1910, Page 2

WOOL IN 1909.

A PROSPEROUS YEAR ALL ROUND

(From Our Special Correspondent.) BRADFORD, Dec. 31, 1909. There is every reason for satisfaction and congratulation as one reviews the wool trade during the past year. (Seldom has there been a time altogether like 1909, for from first to last there was hardly a check to the profit making experience which everyone engaged in business knows how to appreciate. Wool is an article of commerce which if it goes wrong can lead to trouble and loss, but if markets arc favorable and prices steadily appreciate, then it means real good to everyone engaged in the industry. If the history of the p;ist thirty years counts for anything in the trade, then there is one year in ten which stands out like a mountain peak upon one monotonous plain level, that year being usually a “nine.” It is far more pleasant at the end of twelve months arduous toil to be able to stand still and reflect that conditions have been alike favorable both to the grower, buyer, ami .manufacturer, and such is the case to-day. Instead of having to chronicle a severe set-back in prices as' was the case last year, wo have to record steadily advancing values from last January, and with it the best of all conditions, 'namely, a developing consumption and improving trade generally. Here we have the Alpha and Omega of a good wool trade. When last January dawned the business world had to a very large extent recovered from the financial crisis of 1907 awl 1908, the wool trade especially - having recovered perhaps better than the majority of other trades. At the very lieginning of January the trade found itself face to face with very strong markets, and rising values, that month proving to he generallv a good one for all alike. HOW WOOL FARED.

The raw material all through the year lias occupied a very prominent position. there being at no time in the world’s history a season when it has received so much attention or exercised so much influence on the markets of the world. Both spinners and manufacturers have been in that position that they could not afford to ignore the raw material, being forced continually to come into the market to buy. This has meant that both merinos and crossbreds have done fairly well, at least medium and lino qualities of the mutton breed. Merinos all through the year have-occupied the box seat, and it is surprising what has really been accomplished in the way of getting rid of record supplies, and all the while at advancing prices. This fact especially is significant. As a rule when supplies are large and adequate we sec prices somewhat decline, but the very opposite lias been seen during 1909. Instead of there being any fall, raw woo' itself lias gradually appreciated, and all the time the large offerings have been readily absorbed It can be truly said that the trade of the world was never before so close on the sheep’s back and it is even painful to contemplate what will be the results when another drought visits the Australian continent. Undoubtedly the most attention has been‘focussed upon merinos; fine, soft fabrics being a long way the most fashionable both for men and women’s wear. The year opened with values fairly reasonable, but steadily they appreciated until in September there was on all hands a strong feeling of caution in evidence because they were then considered dangerous. The knowledge of what took place in that same month in 1907 was no doubt largely prompting this feeling, and the Inch prices then ruling certainly demand serious consideration. However, merinos steadily appreciated right up '<> tile close of the fifth series of London sales, London selling brokers experiencing a very easy task to dispose of the varied offerings that came to hand. Fine crossbreds shared very similarly to merinos, these being all through the year a very popular article. United States influence for this quality dominated everything, increasing quantities of Ixitli fine and medium crossbreds being taken for American use. Towards the middle of the year wools of 44’s to 50’s quality sensibly appreciated, thanks very largely to the record takings in London by United States buyers. Coarse crossbreds, however, have hardly enjoyed the same popularity as medium and fine sorts, due undoubtedly to these wools being less supported by the Home trade, at least. they have not gone so freely into consumption as 46’s to 50’s wool. Fashions all through the year have favored fine, fancy worsted cloths, this meaning a large and growing support for merinos. Those can never appreciate as they did without more or less influencing the next quality, the result being that 50’s to 50’s have likewise clone remarkably well.

The trade has boon called upon during 1909 to lift record supplies, and yet wool has never “stuck.” It shows that the consumptive capacity of the world is tremendous, for never before have such large available supplies been dealt with in such an easy way. The fact is, at no time has there been any fear felt that available quantities would break the market, and the year finishes with practically clean swept boards, and consumption uppermost. At the moment the trade is waiting patiently for the January London sale's in the hope of seeing offered a fair weight of new clip crossbred wools from New Zealand.

Merino wool in average has risen about 20 per cent, during the year, and from 30 to 45 per cent., for crossbred descriptions compared with 1908. The direct takings of the trade also show very material increases, especially the Continent, the year finishing so far as the Colonial trade is concerned with everything in a very sound, healthy. and satisfactory condition. Next to wool itself comes the combed article, i.e. tops, these always playing the most important part in determining the course of the raw material. Here also everything has indicated progress and prosperity, business continuing right through to he good. From January to September there was a constantly expanding call, with set-backs

of no more than 4d per lb. One never finds in a year of prosperity with a steadily expanding consumption that values decline; much, and it was wot until October that the first real check took place. In the middle of October, just about when a new season was opening in Australia, Continental “futures” wore slumped on purpose to affect sell-, in.g centres in the Colonies, the object being to obtain cheaper wool. The result was that the price of merino tops declined 2d.per II)., which after all is an important item in determining profit or loss. This in no sense affected consumption, spinners and manufacturers all through the year remaining exceedingly busy. Since the fall in October, prices have gradually hardened until the year is finishing with particularly buoyant markets, even coarse crossbred tops having lately sensibly improved their position. The following table shows the course of top values in January, and at the end of each succeeding quarter:

Ja. Mar Ju. Sop Deo. 80’s Colonial tops 29 31 31 31* 30 70’s ,, 2G 28 28 28' 28} 64’s „ 241 27 271- 28} 27} 60’s ,, ., simer-23} 26 26} 28 26! 60’s B. Aires ... 221 25 26} 27 26" OS’s Colonial ,, 22' 21 25 26 251 50’s , j, 18;} 21 22 23} 23' GO’S 16J 18 IS} 20 20! 46's , 3 13}- 13} 14} 15} 164 40’s 11} 12} 12} 134 144 36’s ;; 10} 111 12 121 134 32’s „ .. * 10} 11 11} 11} 12}