THE WOOL MARKET.

Ashburton Guardian, Volume XLV, Issue 10391, 9 May 1925, Page 6

THE WOOL MARKET.

THE LONDON SALES. A RATHER BETTER TONE. LONDON, May 7. At the wool sales there was rather a better tone for merinos, due to improved Continental competition. Other sorts were unchanged. The New Zealand clip "Craig Liekhart" made a top price of 28d .and an average of 24-d. On the Bradford tops market crossbreds are quiet, with a betted' inquiry for merinos. Quotations are:—64's 51d, 60's 46d, 56's 34d, 50's 20d, 46's 22H, 40's 20d per lb. BRADFORD'S GREAT LOSSES. The "Morning Post's" Bradford correspondent affirms that on a> low estimate from £8,000,000 to £10,000,000 has been lost on wool bought prior to December. The money has gone into the pockets of Australian growers'. This lias crippled the purchasing power of English importers, whose only chance of even partially recouping is buying the balance of the clip in Australia and the bulk of the next clip at a rock-bottom price. It will take two or three good years for Bradford and the AVest Riding to recover even a reasonable part of the money lost through misjudgment of the outlook last autumn.

YORKSHIRE VIEW OF BAWRA. The "Yorkshire Post,'' in an article entitled "Australian Growers and Control," says: "The prophet of the wool famine is at a discount just now. The present problem is how to deal with large accumulations which are unlikely to he wanted for some months, by which time the new clips will be marketed. In Australia they are calling for the re-establishment of Bawra, which is in marked contrast to the i Australian attitude during the latter half of 1924, when, they were malting allocations of new wool to prevent overhasty liquidation. Instead cif this policy increasing their profits, Australian sellers let themselves in for a larger share of losses. The growers are now being made to realise for the first time since the war that wool is finding its true economical basis. The boom after the Armistice was artificial. There is now a surplus, not a famine, ! and the surplus, is being carried, not by the Government, but by private traders. Our importers are facing their losses with courage without calling for outside assistance. "The wool-growers did exceedingly well for a long time and have small claim to special consideration. Now many who profited by the mad competition in wool at the end of 1924 call for the re-establishment of Bawra. This means that Australian woclgrowors want to combine amongst themselves for carrying a. large > quantity of wool into next season and ei-ranging its liquidation with the new clip in 1925-26. That is their business.

"The slump now has gone so far that one cannot help concluding that the Australians are wise in not forcing the balance of wool still held in Australi"*. on the market at this moment. If they did so they possibly would create a panic ::ncl play into the hands of speculators. The low-water mark may not yet be touched, but any attempt at forced liquidation would mean severe depression in values, with subsequent violent reaction when orders for tops, yarns and piece goods begin to be placed again in a normal maimer."

AUSTRALIAN SALES DEFERRED.

NONE BEFORE JULY

MELBOURNE, May 8

At the conclusion of the conference between the wool growers and the selling brokers to discuss the question of the slump in the market, it was officially announced that it had been decided that the public auctions should forthwith cease and be resumed on July 1 if the circumstances warrant it. Sir John Higgins, in an interview, said if Bawra had been given the power, it would have regulated the supply and thus prevented the slump occurring. He strongly urged the neied of stabilising the industry. Asked if Bawra would undertake this, he said if Bawra shareholders wished them to take up the task again and made such, a recommendation the Australian Board would have, to consult the British Board. It would mean that he would probably have to make a hurried visit to London.

OPINION IN WELLINGTON. HOPES OF AMERICAN BUYING. WELLINGTON, May 8. Woolbrokers in Wellington were amazed at the decline in wool values at the London values. A fall was anticipated, but it was not expected to exceed, say. 10 per cent. ■ A drop of 6d per lb on all grades of crossbred wool means very heavy losses to speculators, many of whom thought they were doing exceedingly well when buying at the comparatively low prices ruling at the March sales. On the prices current there will be a loss of £8 to £9 per bale. There are many growers also who are chewing their finger-tips with regret. Brokers tell some interesting stories of offers refused by them. These growers must either hold their wool for a considerable time in the hope that the market will improve, or they must accept pence below the offers they refused. Quite a number of growers and speculators anticipated that the London September sales would see wool prices at their best, but now it is realised that the offerings will be exceedingly large and buyers will be able to pick and choose. It is not believed that present low prices will continue. As a matter ot fact, latest advices indicate a slieht improvement, which is likely to gather momentum. Bradford cannot afford to see Continental buyers secure supplies at present prices and must bid against them.

The one great hope, however, is that America will come into the maret. The Americans have been remarkably ouiet for months past, and although the domestic clip will be available in a few weeks, the quantity will not ~>ver American needs. Should the

.'■•-Ticans resume operations, as some peopl" 1 think they must, values are certain to show some improvement. Finance will not trouble the Americans, although it is exercising a detrimental influence on Continental buying.