LONDON WOOL MARKETS.

Gisborne Times, Volume XXIX, Issue 3112, 7 January 1911, Page 2

LO NDON WOOL MARKETS.

SIXTH AND FINAL SERIES. A BETTER OPENING THAN EXPECTED. [From Our special Correspondent.] i LONDON, Nov. 25. j Once more interest is centred in Coleman Street Wool Exchange where the sixth and final series of sales -for the current year began last Wednesday. Here we have focussed the buying power of practically the .whole wool world, and it is noteworthy that what Coleman Street does to-day other markets will do to-morrow. This is really the first series at which there will he offered any quantity of “new clip” wools from Australia, and we shall soon see what .kind of a reception the raw material has had at the hands of buyers. Members of the trade know that a new season proper opens when Adelaide throws down the gauntlet at the end of every September, but tin's year Sydnev forestalled the South Australian capital )>y beginning on the last Monday in September. By this time of the day something like 700,000 bales of wool have been sold, it now remaining for London to submit its first consignment. It is too early yet to give a definite opinion as to the nature and character of the new clip, hut notwithstanding numerous complaints about shortness of staple and the presence of large quantities of seed and burr, we have every reason for saying that some very good wools will this season be catalogued both in Coleman Street and elsewhere. W are satisfied that with plenty of rain from shearing to shearing, nothing short of a good clip can be grown, and in face of large supplies it is some satisfaction to know that trade is good, and the demand is likely to be keen and well sustained through the entire year. RECORD SUPPLIES AND LARGE CONSUMPTION. Regular readers or this issue have been ‘kept fully apprised week by week of what has transpired in consuming centres. Kind it is well-known that while business has been somewhat on the quiet side, still all things considered a steady trade has been done, the best feature of all being continued briskness at all mills throughout the United Kingdom. The woollen and worsted trades of Europe never enjoyed a more prosperous time than they have done this year, and without doubt record supplies have been met with an equally large and continuous consumption. In fact, prices have been saved from seriously falling bv the unparalleled, demand which machinery has made upon the raw material. Many notes of warning havo been sounded' during the past two months about wool being high and dangerous, but after all is said and done consumption is such that no unforscen and untoward factors, the raw material is well able to take care of itself in view of the large needs of users throughout England and the Continent. The principal business done since the close of the. September series has consisted of forward sales of tops and yarns, many firms makin«• provision for trade with the turn of the year. It is customary from September to November for users to deal somewhat extensively in futures, and with prices hardly Rilling to the low level expected, it is generally believed that less business of a forward character lias been done tlian usual. Nobody cares a great deal about that simply because there confronts the trade very adequate supplies, and with little likeliness of prices advancing further, the majority feel comfortable and satisfied with their position. All tilings considered the position of the woollen and worsted industries to-day is satisfactory, and that being so it has paved the way splendidly for a good time in Coleman Street. The outstanding feature of the wool market to-day is a knowledge that the raw material will be wanted at all about to-day’s rates, and so long as mills all 'keep going at the pace they are, prices are well able to take care of themselves. “A TIME FOR MERINOS.”

The question of supplies is of importance and concern to everyone, and affects alike the selling broker and the buyer. Shearing this year in Australia began early in order that owners might catch the November sales, or sell early in Australia. The gross arrivals this season are just a shade less than they were at the corresponding scries a year ago, and the forwarded direct is also less by about iI.OOO bales, while the net quantity available, including •13,000 bales held over from the Jiftli series, brings the total up to 117,000 bales, which, with about 2500 bales from Runt a. Arenas and Falkland Islands, makes the total 120,000 bales. If one eliminates the November series 1908, which, it will he remembered, was a slum]) year, and when large quantities were carried forward each series, then the quantity at present to he sold is about normal. Of course, in 1904, when only 79,000 bales were available, the flocks of Australia were, only just beginning to recover from the previous eiulit years’ of drought, but to-day the quantitv is fairly good in view of the large weight that is now being disposed of at the sources of population. Hus series is going to be a time for merinos, . the bulk consisting of new clip wools •fiom the Commonwealth, New feoutli Wales, and Queensland . contributing a long way the major portion.of the oflerings. We expect owners will be disposed" to sell at current prices, and that policy cviii lie recommended. When, one surveyed, on Wednesday night, the animated scene in Coleman Street A\ 00l Exchange it surprised many people to see the large concourse of buyers m face of the. fact/that practically every firm was also represented at one or more selling-centres m Australia, New Zealand, South Africa, or South America. That fact alone gives the reader a general idea of the ramifications of the wool trade in general. In this, respect alone there has been a great development, and to find firms represented in practically every other selling centre speaks volumes for the important position of the trade in the business of the world. Hie •'Tact is, the production grows a-pace,

rind the offerings of supplies is so important where the wool is grown that firms of an standing ean ill afford to ignore other selling centres, and to find Coleman Street as crowded as ever shows distinctly the strength and ahsorbt-ivo capacity of buyers both athome and abroad. In this respect alone there has been a tremendous dcvelopmon during recent years. The initial .sale passed off distinctly bettor than expected, and prices for the best wools showed practically no change compared with the close of the September series. The Continental section gave excellent support for the fine-haired Queenslands. Wo hardly thought shaft'* Adelaides sold as well as they might have done, and for these prices must be quoted par to 5 per cent down. . The greatest fall 'was in the shabby, faulty, burry parcels, and here the decline was fully 5 per cent. South. African merinos also gave way 5 per cent. A few lots of crossbreds catalogued sold readily to the home trade at fully last sales’ rates. The opening was a "articuhirly good one, and wo shall do well to sec the level maintained to the finish. THE OUTLOOK.

Messrs. H. Dawson and Co., in speaking about the outlook say: '‘The past interval lias been chiefly marked by a very keen struggle for values at the home centres, where consumers seem disinclined to put firm faith in the maintenance of tile current level of prices. InBradford, and in other centres to a less degree, there is a persistent- determination to go cautiously and to buy only for immediate and urgent requirements until the situation is clearer. It is very pun-ding that prices remain so firm in the colonial markets while this opinion is so general here. Few* are disposed to operate freely at the existing rate, and Continental" spinners alone 'seem to be giving steady support. The position is all the more, illogical when it is realised that topmakers in all the centres appear to bo willing to book forward at somewhat lower prices than those ruling in the colonial auctions. Spinners are certainly occupying t-lie more favorable position at the moment, and they are undoubtedly responsible for the firm maintenance of values in the oversea markets. Worsted manufacturers who have been so well employed (luring the year, are not quite satisfied with the way in which the new season's business is developing, and find the competition of Scotch tweed makers keener than for many years. On the other hand, it is important- to remember that large drawings have been made on the year’s supnlies, some 600,000 bales having been soid in the Australian markets up to the end of last week. Prospects are also slowly hut steadily improving in the United States, and it is probable that their support will he felt in our markets earlv in the new year. As regards crossbreds, there has been a considerable forward selling at low prices in Yorkshire, although it is difficult; to understand why crossbred sorts should have weakened at all. as everything appears to point to a strong and sustained demand, with probabJv some further preference being given to crossbred ■pilit-ies durinir the next season. During the last few dat*s the Bradford market lias been somewhat stiffened hv the firm quotations cabled from Xew Zealand and Buenos Ayres.”