LONDON WOOL SALES.

Gisborne Times, Volume XXXV, Issue 3949, 4 June 1913, Page 3

LONDON WOOL SALES.

SERIES OPEN WITH PRICES

FIRM AND UNCHANGED

[FROM' OUR OWN CORRESPONDENT] LONDON, April 25

Wool is again commanding lie unreserved attention of tlie entire trade, interest at present being centred upon Coleman Street Wool Exchange, where the third series of auctions' were inaugurated last Tuesday. Whenever the time approached for this event to take place, • there is always a very large attendance of buyers, and the opening on Tuesday was no exception to the rule. One missed several well-known American faces, but so far as the attendance of! the Home and Continental buyers was concerned there was nothing whatever wanting. As a matter of fact, with the whole buying spirit of the trade now being focussed upon Coleman Street, there were naturally several faces which had not been seen for some months, these gentleman having returned from overseas markets. _ After what we have recently seen in consuming centres, more than ordinary interest was attached to the opening, and to find the beginning so good shows that after all the raw material rests upon a fjairly good foundation. Why should it not? There may be at the moment big supplies of wool in the West Riding, and in Continental consuming centres, but considering the time,of the year this is nothing unusual. When buyers have been in Australia five months they naturally want something to show for their services, and at the present time overseas purchases are coming to hand freely, causing consuming centres to present a rather congested appearance. Still, a lean time is coming when the anticipated shortage in the current clip will be be manifest, and we see no reason why trado should not be able to absorb the supplies, providing too big weights are not put before buyers. However, brokers in London are fully aware of the f>act, and we believe they have decided not to submit anything like the quantity available.

A DISAPPOINTING INTERVAL

It has been well said that out of the immediate past there is always evolved the immediate future of nrices. As we look over the past month it must be recognised that the vacation lias been shorter than usual. Some .have gone the length of saying that it would have been as well jf the current series had been delayed till after thje Whitsuntide holidays, but that cannot be. It is to- be regretted that prices have slightly receded both for merinos and crossbreds, at least many topmakers have seen fit to accept a fraction less in order to effect sales. No doubt some financial stringency has been in evidence in consuming centres, though it is well known that at this time of the year there is always this to face- No firm, however wealthy they may be, can land thousands of bales of wool week after week without feeling the strain, but it is cause for thankfulness that nothing unusual has transpired, and is not likely to do.

The new business actually done during interval has been lighter than usual, in fact the vacation has been quieter than we have seen for many months past. Business generally has only been possible at a shade undr what topmakers were quoting, and so recently as last week good standard 64’s tops were sold as low as 2s old, while even the better makers came down Jd. In the ease of crossbreds, topmakers have in several cases taken a Id under what they made at the close of the last series, and to-day it would have to be a very good 40’s prepared top to fetch more than lOd. Under these conditions everybody sees that the _ trade could only come together with somewhat mixed feelings on Tuesday, many expressing some doubt as to the probable course of prices. Hoy,ever, all alike felt that there is nothing wrong with the standing of wool, the trade simply being a little hard up owing to big direct supplies, but it is to be hoped that the current series of sales will establish confidence and show that the raw material affcer all is standing on a very firm and satisfactory foundation.

LIST OF. ARRIVALS

It will be remembered that the net arrivals were limited to 150,000 bales. The total was reached, and the gross arrivals show that there has been a big movement of raw material. Since tlie list was closed for the March auctions no less than 389,700 bales have arrived. Of these 227,000 bales have been forwarded direct to manufacturing districts, leaving with the held over wools a> net available quantity of 187,000 bales. This is a fairly big meal to digest, but owners have no intention of offering anything like this quantity, and their decision is a wise one. It is at present too early to say what is likely to be the ultimate course of the auctions, but so far as offerings go, there will be a fair big carry forward at the end of the seriesThe following are particulars of the arrivals compared with the third series during recent years :

ARRIVALS FOR THE THIRD SERIES.

A CREDITABLE OPENING

No less than six sellers put before the room a catalogue last Tuesday, the aggregate offering being 12,369 bales, this being unusually large for an opening day. The selection was only a medium one, the crossbreds being a very poor and miscellaneous show of wool. The best merinos consisted of two or three well-known marks from New South Wales and Queensland, but otherwise there was nothing out of the ordinary. _ At the very start bids were given with freedom, there being practically no reserve. As a matter of fact, it was frequently remarked that competition seemed to be on a broader scale than during the closing week of the March series, particularly on the part of the Home trade- A little buying in the merino section was done both by France and Germany, while also one Roubaix firm _ of buying brokers secured a few nice lines of coarse crossbreds. Belgium was also in evidence for the scoured carbonising wools, the initial sale giving rise to a very commendable degree of competition. Comparing prices with tlie close of the March series, there was practically no alteration.. All good combing merinos easily made last sales’ closing values, but on a fciv lots of heavy, faulty wools of uncertain yield, these occasionally showed a decline of ’d. At the same time all desirable lots easily made March prices. The most surprise was associated with crossbreds, and here we had distinctly good competition. The Home trade led the van, and competed very keenly indeed. There was no change here whatever, prices both for coarse, medium and fine descriptions bemg..fully on a par with last sales’ closing prices. Slipes, if anything, sold a little in sellers’ favor. South African wools also fared better than during the last week of the March auctions. Competition

was broader, and if anything good conditioned combing lots were in sellers’ favor, while the more wasty descriptions easily made March prices. Taking'the sale as a whole, it passed off well, and certainly exceeded the expectations of the majority. Succeeding sales have passed off very well indeed, opening prices being well maintained. There is a good buying spirit abroad, and everything indicates a firm and healthy market.

THE OUTLOOK

Messrs H- Dawson and Co. make the following observations regarding the outlook:—“To-day’s verdict has been awaited with more than usual anxiety and interest after an interval which .has been somewhat depressing and critical. - The stability of values has been severely strained, but prices have stood the test without any notable shrinkage. There lias been a combination of adverse factors. New business has been scarce ; buyers have preferred to wait for the verdict of tlie sales; money has been dear and accommodation limited; and the export yarn trade bias "had difficulties owing to the Balkan crisis. The greatest trouble has, however, been found in the congestion of supplies, which has been felt very acutely this year; imports from all the Colonial and South American markets have come to hand more expeditiously, and more simultaneously than usual. This question of the more equable distribution of supplies is becoming a serious problem to the trade, the arrival of such a large proportion of the season’s clip in the first three months of the year constituting a grave menace to values, especially in these _ times of high prices. The subject is worthy of being earnestly grappled with by the various consuming interests, and tlie suggestions recently made at the Bradford Chamber of Commerce that importers should revert again to the larger use of sailing ships deserves consideration. _ These combined adverse influences have not, however, beeneable to weaken the confidence which is felt in the statistical position of supplies for the year. Fortunately coincident with the opening of the series, the" most critical period seems to have passed and prospects have begun to assume a more favorable aspect. The settlement of the Balkan question, a cheaper bank rate, and the probability of the American Tariff Bill being passed by July 1 with wool on tlie free list, or with ail alternative of a small ad valorem duty, are all factors which should tend to strengthen the position and value of wool. Added to tliese there is the more real and important fact that during tTie next eight months of the year (after the close of the present series) there will only he three comparatively small sales m London, the'offerings at which will constitute practically tlie whole of the supplies available for the' industry, until the new season’s imports arrive in fair quantity at the end of the year. There appears to have been misapprehension in some quarters respecting the facts of the South American production. The latest and most careful estimates place the decrease in this season’s clip from the River Plate at 60,000 bales. Meanwhile the shipments to this date show an increase as compared with 1912, but it will be remembered that shipments last year were seriously retarded by labor strikes at the South American ports, which extended the season by about two months. This vear, thanks to an active demand and an absence of labor troubles, there lias been a remarkable expedition of shipments, and a record early season. These earlier arrivals of South American wools are in fact largely responsible for 'the temporary glut and financial strain of the past few weeks-’’

Cross Forw. Net. Arriv. Direct. Quan. Tear. Bales. Bales. Bales. 1913 , .. 389,700 227,00 187,000 *1912 602,500 343,500 277,000 1911 .. . 366,600 203,500 201,000 1910 .. ...431,500 270,000 170,000 1909 .. . 377,500 213,000 177,500 1908 .. . 318,000 - 132,000 263,000 1907 .. . 352,000 197,000 160,000 1906 .. . 316,500 166,000 157,000 1905 .. . 296,800 150,500 165,500 1904 .. . 297,500 128,500 183,000 1903 .. . 304,000 113,000 208,000 1902 .. . 367,500 139,000 239,000 *The second and third series, which began on Api'il 11th, 1912, were amalgaraated on account of a coal strike.