LONDON WOOL SALES.

Gisborne Times, Volume XXIX, Issue 3252, 24 June 1911, Page 3

LONDON WOOL SALES.

ANOTHER EXCELLENT START

‘Feom ous Own cotlbpspondent.]

LONDON, May 12. It really is. delightful to see the amount of energy and enterprise connected with the wool trade, and if any colonial 1 grower could only step into: Coleman Street Wool Exchange and witness the sights which are to he seen he would naturally think that half the inhabitants of the world were going' naked. The whole trade came together last Tuesday in very good heart, the occasion being the of the May series of safes. Only six weeks have elapsed since the termination of the March series, yet a good deal of water has gone down Bradford Beck since that time, and wooleombcrs suds have cleansed a by no means small amount of colonial grown wool. However, there is stall remaining on hand sufficient buying power to give a good account of itself before the present series finish, and I am certain that business is so good in consuming centres that we are in for another very good series.

Regular readers of this issue will in no sense be surprised to learn that the whole trade asembled last Tuesday fully expecting a shade higher i>rices, these sentiments being largely the outcome of continued good trade. I have said before that London at one stroke sizes up the actual standing of the. raw material, and this I am convinced of as each scries come and go. No doubt it is possible for anyone to get a false impression of what conditions are like in such centres as the. West Riding, especially when many people try a game of “bluff” in speaking about the actual state of trade. Oftentimes licnest effort to report actual trade conditions are thwarted, at least come make an attempt to create a wrong impression, especially when the object before the writer is to give the grower full details of the situation. In London there is no disguising the fact that the way the raw material sells is a, reliable criterion of what conditions actually are, and the opening in Coleman street is certainly fully a§, good as' the most sanguine expected. >

QUANTITIES FOR THE MAY SALES It will well repay the reader to analyse briefly the net arrivals for the current series. They are longer than they were last year, hut all the same nobody has expressed any surprise or manifested the least concern over the 201,000 bales which are available for sale. Why should they? We have known times in the past when there has been available over 300,000 bales, and yet the entire lot has bon disposed of. Today the consumptive capacity of Die trade is at least one-third larger than it was in the nineties, lienee buyers came together on Tuesday in good heart, and fully prepared to lift the wool in sight. Although there is about 30,000 bales more than was the case at the corresponding series a year ago, still there is a loss supply of New Zealand crossbreds, and therefore more merinos are available. At the same: time it should be borne in mind that when the present sales are over there cannot possibly be but a very email quantity of crossbred wool' available for the succeeding series this year, hence we are certain that buyers will in. no sense remain inactive, but will purchase largely for future requirements. The following table shows the new arrivals and quantities available for the May series of London wool sales, compared with the corresponding sales last year:— tlav series. April-May series 1911. 191°. ®. o . jo v?" ,2 3,2 el d cl d d d -1” fe-g -1. B u > o o ’-j 5 S £<! <!«2

366,600 201,100 431,300 169,800 AN EXCELLENT BEGINNING. Fully satisfied as to what was likely to obtain at the commencement three selling brokers put before the room last Tuesday catalogues somewhat better than usual, this no doubt bringing out all the latent buying power of the

trade. They could not have done a better thing. Buyers felt there was something worth competing fcr, and at current rates merchants and importers cannot be wisely advised to hold back supplies. As one went round valuing on Tuesday morning it was evident that a spirit of cheerfulness and confidence animated the majority, alt alike feeling that another good series was cetrain. True the question was agitating some minds as to whether or no the top notch has been touched respecting trade itself, but it seems to several that the orders to which many firms are already committed were cjuite sufficient to wairant users lifting the wool in sight. Punctually at 4 p.m. the ball was opened, and from first to' last tion wars exceedingly keen. The bulK of the buying this series is undoubtedly o-oing to bed one by the Home and Contiental trades, although America is represented in Coleman street by three or four firms. Still, nobody is poking for any activity on their part, though if they bad to come 'into the market, they could soon influence prices still further in an upward direction. . JNew Zealand crossbreds bulked largely in the first days’ catalogues, but the Homo trade rose to the occasion m a hrst-ciass manner, competition being very keen and fully np to the best of last senes. There was also' catalogued a reasonable quantity of South African descriptions, but the 'wools were only of an average character. . When compared, with thee lose of last- series the following alterations took place:— , Merinos, par to 5 per cent higher; fine crossbreds, par to 5 per cent higher ; medium crossbreds, par to o per cent higher: coarse crossbreds, 5 per cent higher: coarse crosbreds. sliped, o per cent high hr; South African merinos, firm and unchanged'. THE OUTLOOK.

Messrs H. Dawson and Co., in speaking of the outlook say“ The present series opens under conditions which are unusually satisfactory. From almost every centre comes the report of a revived' demand with improving values and a well-maintained consumption. The reaction from the unjustified depression of the new year has been comp'eto thorough. , The persistent strength of the machinery call is the all-potent factor. Any difficulty m the industry during the year has pertained to values and - margins, and lias not shown itself m any decline of turnover o? consumption, which have been remarkably sustained. Combing mills have difficutlv in coping with the pressing demand for topsThe strong favor shown for merinos in every centre has again caused the year’s production to be fully absorbed, although it is a record supply. lhe

available wools for this series will almost clear up the clip, but it needs to be remembered Diat the new season’s wools are already beginning to be shipped from Quensland. The constant, tendency is to get wool Home earlier, especially in merinos, and in accounting for the absorption of the year’s: supplies it is necessary to remember that unusually heavy inroads were made on last season’s production from July to December. Both the starting and the finishing points of the season in fine, wools have sliifted considerably during past years. This needs to Be noted by these who are disposed to take too sanguine a view, of the present position of merino supplies. In crossbreds the position is different, as there cannot bo new supplies in heavy bulk before the end of the year. U.S.A. support is still so weak as to be a negligible element. AVith this exception, the whole world’s active competition will bo practically focussed on the London market, and this year’s supplies seem to be fully mortgaged. Although the U.S.A. demand is at a very low ebb just now (indeed some parcels of old stocks have recntly been; forwarded from Boston to European centres), yet it may be reasonably expected that next season American requirements will be on a large scale both for rawmaterial and for the .manufactured article. Consequently, all things being considered, one can understand the firmness of values, and the confident tone which generally exists in European markets. So far as can be gauged, it must be admitted that the prospects for 'all grades of raw material are good' for sometime ahead. There seems to be no doubt that once more there will be rare boards for the new season’s clip. It is, however, all to the good that to-night’s opening showed only a safe and moderate appreciation.

Bales. Bales. Bales. Bales. Sydney and Queensland ... 78,050 34,250 72,750 19,950 Port Philip ... 76,150 22,650 91,900 16,900 Adelaide 13,550 13,750 9,900 5,100 Swan River ... 6,400 8,800 6,150 6,350 Tasmania 17,050 7,150 14,700 6,200 New Zealand 125,100 102,100 198,600 107,300 Cape 50,300 12,400 37,300 8,000