LONDON WOOL SALES.

Gisborne Times, Volume XXIX, Issue 3372, 11 November 1911, Page 3

LONDON WOOL SALES.

OPENING OF THE FIFTH SERIES. BOTH MERINOS AND OR OSSBRED.S DECLINE. ; FHOM OUU OWN COEEESPONDBNT.J LONDON, Sept. 28. Once more tire eyes ox me wvhji trade are centred upon Coleman Street, where the September series began last Tuesday. We have known the trade come together with a keener '.appetite, and at present it can hardly be said that the situation is so inspiring as many wop Id like to have seen. .Still, we must never forget the fact that prices cannot always be expected to advance, and wool is certain to share in the vicissitudes of general trade and commerce. The wonder to many people is tlnat a setback lias not come earlier, but it all .serves to show that the world’s needs are still very pronounced, and of late years consumers have almost been on the sheep’s back for supplies. However, the recent boom in textiles has to a large extent been mitigated, and instead of a keen demand fox* tops, yarns and pieces, a feeding of soberness is everywhere in evidence. This was plainly seen at the initial sitting last Tuesday, although the sale passed off better than expected. We have oftentimes seen that no matter how slack and unresponsive may be consuming centres, when the trade comes together as a whole there is frequently more life and spirit manifest and things have to be very had in Yorkshire, France and Germany if wool does not sell fairly vigorously. As a rule the raw material does not spoil with keeping, and it is purely and simply a question of price which determines the attitude of the trade. It is quite true that manufacturing conditions are not so satisfactory as have obtained for some considerable time back but for all that if feelings of confidence prevail, it would seen althe whole aspect of the situation. Although a somewhat reserved feeling was in evidence in several cuiarters, still on the whole the initial sitting passed off better than the majority expected. A POOR INTERVAL. Regular readers of tins issue have been kept apprised of what was going on in consuming centres, and althougii the longest interval of the year lias been experienced, it has also been the worst. The fact is there has not- been a single week through the whole period, business being difficult to do with values gradually sagging. This has been a distinct drawback, so much so that instead of values appreciating, the opposite lias taken place. There is nothing like a brisk interval to call forth a satisfactory opening, but the trade last Tuesday came together with some misgivings this being clearly seen in the undecided attitude of many buyers. The whole industry seems at present to be somewhat unnerved, and with the outlook being nothing near so bright as we have been accustomed to see, there was bound to be a little readjustment in price. Declines have taken place both in tops and yarns, and with the reported sensible weakness at Colonial selling centres during the past three weeks, the majority came to Coleman Street expecting to see prices lower than last scries. Below we show where prices stood for the combed article at the close of the July series, and what were quotations last Tuesday for good average standard tops on the Bradford market : Jly 27. Sep 25

QUANTITIES AVAILABLE. The question of arrivals is one of great interest, for by the wool coining to hand he can always see whether or no the trade is well supplied with the raw material. As a rule the September series sees the end of the last Australian clip, but this year there will be a fair supply of Queensland new clip, which will help to “salt” the somewhat heavy quantities of carbonising wools that are certain to be catalogued. The quantity to hand this series is larger than usual, in 1908, owing to large quantities being carried forward at the close of each series, the supply exceeded that of today! Still, with manufacturing conditions being fairly healthy, there should be no difficulty in moving the 127,000 bales available. The following shows the quantity on offer compared with the corresponding series a year ago:

A DECENT START. The initial sale passed off fairly well when all things are although it might have been better. Still, there wa* no very pronounced weakness in evidence, alt-no ugh a few “soit spots’’ wore revealed. Three- selling brokers put before the room Colonial catalogues, the selection being somewhat scraggy and poor, although the offerings contained a few decent lots of /Queensland new clip. Still the bulk of the wools were shabby and faulty, crossbred slipes predominating. For these the home trade did most of the buying, while the Continent supported veil the merinos. There was just a little reserve, but not what might have been expected. All things considered the initial sale revealed a few encouraging features, but there was not that great eagerness to operate which we have frequently seen. However, things may improve as sales succeed each other. When compared with the closo of the July scries good combing merinos, which were sparsely represented, showed little change, short, faulty clothings being the most neglected and slow of sale at Id to Id decline. Crossbreds sold rather irregularly. Fine qualities wore down par to -Jd ; medium M to Id. and coarse -id. Slipes were in plentiful supply, and here medium carding descriptions showed the greatest fall, being down frequently id to id per lb., other sorts selling well at id less, with lambs practically unchanged. Greasy combing Capes sold in buyers’ favor; and were mostly withdrawn. Punta Arenas wools fared very similarly to Now (Zealand greasy crossbreds, and were mostly par to 5 per cent, below July rates. THE OUTLOOK. Messrs H. Dawson and Co., in speaking about the outlook say: “The fifth series opens jinder somewhat unfavorable auspices." The long interval, despite its very substantial clearance of raw material, lias not brougli back con-

fidence to the wool market. It lias rather provided a crop of troubles, political and social, which have disturbed aIL markets, and have adversely affected the position of our raw material. Values have shown shrinkage in most U.U..-S of wool during the interval, apparently for no other reason than sheer nervousness and lack of confidence.

iSo lar as tJie merino sorts are concerned, the past season’s supplies are practically all gone into consumption, and there can bo no weakness for the supply standpoint. Consequently, the fate of values is dependent on demand, the future course of which it is difficult to predict; while manufacturers in some districts give a cheerful report, there is a good deal of pessimism in other parts. The real fact is, that in order to assure enough business in worsteds, and to keep spinners and manufacturers well employed, and also to obtain more adequate margins for merchants and topmakers, there is a general call for lower prices, so that some ease in values certainly seems probable, and, in fact, is already in evidence. The question arises as to how much further it may go. There are some exaggerated notions in the air which have little chance of realisation. The position is too healthy; too much machinery is still employed, too much wool will soon be called for, and, above all worsted cloths (thanks to the hot summer)' are still too much in favor of any apprehension of an extreme fall in fine wools. In crossbreds the market has been loss stable, but current prices are now relatively low, and are moderate enough to encourage a strong demand. Bradford lias been somewhat heavily stocked, and Continental enquiry for tops has been slack, hut during the past days a fair business has been done at the lower rates. There is also the probability that iat any further decline U.S.A. would be able to import freely in competition with their own wools.

The situation in the States Is still far from satisfactory, but in the wollen_ industry it would appear to the outsider that the worst is over, and that a healthier position obtains. Stocks of cloths are so low that the normal demand must now find its way to the manufacturer promptly, and there can be no block in the channels of distribution. A period of low' prices and small margins is unavoidable until there is a settlement of the Tariff question, and this naturally gives preference to cheap and lower grade wools. Domestic wools in crossbred grades are finding a ready consumption, and with lower values for New' Zealand sorts in this market it is probable that U.S.A. demand may develop; hut, with the exception of a few specialities, low values would seem to be the only way out of the slough. In gauging the prospects of the coming season .there al3 two main factors existent. On the one hand, there prevails a universal desire for easier values, and on the other, we are faced with the -fact that at the end of the year there will again lx? no serious carry-over of old wools that can hamper the trade.

The reports of the new season's clip in South America and Australasia are generally good, excepting from some New Zealand districts, where wools are reported to be of indifferent growth.”

d. d. 70’s Colonial tops 28 27 64V; Colonial tops 27* 26* 60’s Colonial tops _super 26* 25i 60V Colonial tops ordinary ... 25*. 24* 56’s Colonial tops average ... 211 201 50’s Colonial tops average ... 181 172 46’s Colonial tops prepared ... 151? 15 40’s Colonial tops prepared ... 141 13* 36’s Colonial tops prepared ... 13* 13

N.S. Wales • and Queensland ... 59600 33400 640C0 44200 Victoria ... 7500 5800 7150’ 9250 S. Australia 500 700 850 2250 W. Austraia ... 1300 1400 2300 2900 Tasmania 200 300 150 150 N. Zealand ... 45700 G8200 38450 64,650 S. .African ... 174C0 5700 17500 6000 Totals ... 132000 115500 130400 127400