YORKSHIRE WOOL LETTER

Gisborne Times, Volume XXXIII, Issue 3663, 26 October 1912, Page 2

YORKSHIRE WOOL LETTER

IS WOOL HIGH ENOUGH P

[FROM OUR OWN CORRESPONDENT] BRADFORD, Sept. 20. With the opening of the Colonial season by a three days sale in Brisbane this week, together with a large and important sale at Adelaide, attention is directed to the standing of the raw material. The cables which have come to hand indicate a very satisfactory demand for the raw material, and while no further important upward movement is to be chronic’.ed, wool is selling very remarkably, showing conclusively its sound standing. When Coleman Street Wool Exchange opens its door next Tuesday it will 1)} all “hammer and tongs,” as they sav in Yorkshire, the combined buying spirit of all wool-consuming lands being focussed on the raw material exposed for Side. It will not be badlv spent time if to-day I show where values stood at the opening of the London September series during th? past few seasons and this is prompted hv the repeated statements in consuming centres that the price or the raw material is too high at the beginning of a new season in Australia"? One often thinks that talk is cheap, and many people let their tongues wag a little too freely without paying due regard to actual facts. Irwin be seen from the undermentioned particulars that the price of wool and tops does not greatly dilfer from what has liecn ruling at this period for the past few years. It simply is now a question as to whether things can be so engineered as to effect a slight decline at tiie various selling centres in thy Commonwealth. Particularly on Continental terms markets the practice of so manipulating prices as to a 1 feet to some extent all buying centres is common, but this year the task is going to be more difficult than usual owing to the shortage in the forthcoming Australian clip. Many even in Bradford have not altogether given up hope of being able to buy on a slightly lower basis, than hitherto possible, but- that remains to be seen. Last season the active Germany buyin o- in Australia to a large extent annulled the onslaught which was made upon “futures” at Roubaix and Ant.worp, and as far as one can see there is every likelihood of values maintaining a level not far off the present one. However, time proves a great deal, and if to-day’s conditions in the manufacturing world of Great Britain, the Continent and America are anything on which to form an opinion, there is certain to be a very sound and satisfactory demand for the raw material for some months to come.

WHERE INCREASED SUPPLIES are likely to cow e from. No one is bold enough to say that wool is cheap, and while wo have all known prices to lie much higher than they arc to-day, yet the fast is generally accepted'that, wool is well above a normal price. At the same time it is too dear. We often think that the majority will have to re-organise their views in regard to the immediate future of ,raw material. Old memories no doubt linger long, but nevertheless it seems to many in the trade that- wool is a very long way from ever getting back to the level of 1895, 1900 and even the early months of 1908. Australia appears to have turned out her maximum clip for some years to come, and the only possibility of an increase is likely to come from New Zealand (which cannot be large), South Africa and South America. According to Dalgety's the forthcoming Australian clip will be ‘250.000 hales le;s than last year, and if such a shrinkage is the result six months drought in the Commonwealth, what is to be expected when a dry season lasts for a longer period, as was the case, some few years back. The only country where we really may expect a. further increase of merino wool is South Africa, and no doubt the continuous importation of Australasian stud stock is the best tiling that could be done for the South African wool industry. As regards ail increase from Australia, it looks as if that country has turned out its maximum weight of raw material.

' VALUES CONTRASTED. I With the advent of another new season and the opening of the September series of London sales, it will be well spent time to see where values stand compared with recent dates. Tiie following are interesting particulars which are well worth digesting by the whole trade, and the figures given f'°" to-day are the closing prices of the July series of London sales compiled from the circular of Messrs Buxton, Ronald and Co. (for the years 1912, 1911, 1910, 1909, in their re-' spectivo order:— Merino.— V ictoria, Western,- good quality and condition, 16d—17d, 151—16-?.d, I6d—10kl, 17-J —18-J (average). N.S.W., Riverina, good staple and condition, 14d—14£d, 134d—-14-J-d, 14d —l-Lkl, lod —l6d (average.) N.S.W., New England, fine bluish, 14d—15d, 13>d-14id, 14*d—15d, 15d —l6d (average). Queensland, Central, food staple, fair condition, 13d—-1-kl, 12)d —13kl, 13d—14d, 14d—15d (average). South „ Australia, Midlands, fair length, lOd—lid, 9kl—lo’d, lid— Hid, 12kl—12id (average). New Zealand, South Island, fair character, 11 >d—l2d, lid—ll-Jd, llkl —l2d, 12d—13d (average). South African, Kaffrarian, • fair staple, 9d—9)d, 9d—9-Jd, 9kl—lokl, 9d—lOd (average). —Scoured Merino.— Victoria, fair body and color, 2,‘kl—-2-kl, 22d—23d, 23)d—24k], 24d—25d. Queensland, good quality, color ami condition, 24d—-25d, 22k1—234d, 2 Id—--26d, 24d—26d. N.S.W., fair color, rather fatty, 20d—20kl, 18d—184d, 2Qd—2ld, 20kl —2l idNew Zealand, fair body and color, 22Jd—23d, 21d—22d, 22k1—23k1, 22d —23 d. • - Cape, Kaffrarian, short light, 17k! 18 I, 17d—17-ki, 19d—20d, 18d—19d. We now come to deal with crossbreds. Present prices cannot be called disappointing to o-rowers, and if they never receive less for their wool, they will have no cause for complaint. Values are such that notwithstanding the increased cost of production, crossbred wool can he grown at a profit, for the present price of mutton sheep in the Dominion is also bringing good returns to producers. It is certainly very satisfactory to see crossbred wools fetching these prices, and the level is such that importers are already feeling that the danger point is fast being reached in view of another importing season. Below wo set forth some valuable particulars showing where values stand compared with the corresoonding date in previous yeafs, and the table is well worth consideration:— Half-bred, super, 50’s-56’s. 13d—14d, 13d—13kl,* 13 id—l 4 kl ; 16kl—--17 *d. Crossbred, medium, 46’s, 10-Jd —• ll.Ul, 10—lO.kl, Hid—l2d, 13d—14d. Crossbred, coarse, 40’s. 9d—lOd, 9d —lOd, lOd—lokh 9kl—lo-kl. 9d—9)d, 9d—lOd, 9(1—9) d. It will he seen from the above that to-day’s values are practically on a par with the corresponding date a year ago, but are distinctly below what they were in September 1909, that being a very active time when American buyers were on the war path in a very similar manner to what they are to-day. Towards the end of the year materia'ly reduced their takings, and this is a contingency which the trade ought now to watch. It can he taken for granted that after the next Presidential election, tariff revision will occupy a very commanding position in the American political world, and it is a foregone conclusion that a Democratic President will he elected. MERINOS INFLUENCED BY COLONIAL SALES. The market this week presented practically no new feature until Thursday, when cable news of the opening of the sale in Adelaide, and reports’ of the Brisbane sales were to 'hand. It is clearly evident that wool in Australia is selling remarkably well, and it must be said that prices are fully on a parity with either London or Bradford, it being generally estimated that 64’s tops will cost fully 27)d out of both centres. This is fully as much as can be made in Bradford in fact. 27kl cannot be freely made, there.' No doubt there has been a good deal of covering, hut at tlic same time it is generally felt tbit the majority are buying for actual use. There is bn all hands a goal deal of enquiry for the raw material, and it is impossible to pick up any at fractionally easier prices. Spinners continue to be busy, and they can still sell yarns and pieces at recent rates. 'J’opmakers in Worstedopnds are anything hut convinced that the wisest policy is to force values, and while several firms are not the .east particular about selling, they are sitting tight and arc not at all k<-c.i to talk of the future. It is qude true that a little business lias noon done for next January, 64’s .narm:; been sold in a few instances on a Pas's of 26d. Unless Colonial markets shade a little, there will be no wool bought to bring in tops on that basis, but the sellers say that wo have had similar strong openings before, ami I whs'll buyers have to a large •■'xfc.uifc satisfied their most urgent requirements, they have then settled down to do business on a more reasonable basis. . Everything presents a- very . firm appearance indeed. Crossbreds are very sound and intact, and general expectations seem to favor a full 5 to 74 per cent. ; dvance next week in London.