THE WOOL MARKET

Ashburton Guardian, Volume 55, Issue 127, 11 March 1935, Page 7

THE WOOL MARKET

THIRD DUNEDIN SALE. MOST LINES LOWER. (Per Press Association.) DUNEDIN, March 9. The Dunedin Stock Agents and Wool Brokers Association report that at the third wool sale held on Saturday the catalogues amounted to 24,662 bales, but this quantity! was reduced before the auction by several hundred bales, the owners of which withdrew their clips from the sale. A large percentage of the catalogues offered comprised clips from the back country, these being chiefly of the finer type of wool, and showing evidence of the severe conditions prevailing during the winter months. These wools, being later shorn, were generally heavier in condition than the previous offerings at this centre. A number of the clips also showed more seed than usual, this being due to the early season and dry summer which lias been experienced. The quantity o? suepr wools offering was not so noticeable as at the two previous sales held here. A fair proportion of crossbred wool was on offer and the quality of these clips were up to the usual standard. Contrary to expectations the demand at Saturday’s sale was keener than was anticipated early in the week, and probably the improved demand, especially from France, can be attributed to the more stabilised position of sterling. This probably accounts for the Continental section of buyers getting increased limits for the Dunedin sale and their competition was largely responsible for the improved market. Throughout the sale there was strong competition from a. full bench of buyers. The demand was well distributed, but the main competition came from Bradford and France. Orders were in evidence for Germany and Japan, but these were very limited. There was a comparatively small proportion of wool suitable for local mills. Consequently, their competition was not so evident as at the February sale. However, they purchased any lots which suited their trade. (Prices were keenly competed for by the Continent, and local fellmongers were also operating for scouring lots. Compared with the February sale in Dunedin merinos showed the biggest decline, and these can be quoted a full Id lower. Super lots of half-bred were also easier by Id, whilst medium to good half-breds were selling at id to 2d less. Cross-bred wools almost maintained their value, and the decline here would be no more than 2d per lb. Compared with the last Dunedin sale rates, all grades of pieces were lower in sympathy with fleece wool the decline being from id to 2d per lb. The only improvement in values was in crossbred hoggets, which generally sold at higher prices than last sale. Most of the passings at the sale were accounted for by growers’ high reserves and represented approximately 7} per cent, hut this would he reduced by clearances made after the sale. The top price realised at the sale was 14d per lb for six hales of super combing merino wool grown by Mr James Freeland, of Green Valley. A line of three hales of superfine half-bred also realised 13id per lb. Rang# of Price*.

FRENCH COMPETITION. INFLUENCE OF MONETAR Y TROUBLES. (Special to the “Guardian.”) DUNEDIN, March 9. The feature of the wool sale was the fact that, apart from Bradford, France vras the chief buyer. Other Continental buying was very restricted, and Japan did not take any large quantity. It was also noticed tition from the principal New Zealand mills w r as largely absent. The main factor upon which an improvement in the wool market is dependent is a return of confidence on the Continent, and the removal of restrictions on trade which now' exist. Once conditions in Germany, .Italy, France, and other wool-buying countries become more stable, an increase in exports will give an increased stimulus to the purchasing power of the countries concerned, and consequently a rise in the price of wool, resulting from increased competition. The position at present is one practically without precedent in modern times, for the fall in exports has led Continental governments to impose restrictions on imports. Even during the wrnrst of the

slump foreign merchants were allowed to buy abroad so 1 long as they could finance their operations, but the recent import restrictions introduced by several countries have effectively eliminated a large measure of foreign competition among the bench of buyers. The market this season lias been extraordinarily sensitive to fluctuations in monetary values. A general decline in the price of wool has followed on the drop in sterling and the recent weakening of sterling has been reflected in the lowering of buyers limits, at late sales. The firming tendency ot sterling noticeable within the last tew davs was responsible for some elasticity of buyers’ limits to-dav, compared with recent sales. The catalogue contained a large proportion of fine wools ranging from 56 s to 08 s, suitable for scouring, and ot a type which is in particular demand on the Continent. Much of this wool which was heavy in condition, was from backcountry stations, aiul showed evidence of severe conditions.

Following is the range of prices: d. a. Merino— Extra super — to 14 Super 92 to 111 Average 8 to 9 Inferior . 7 to 72 Fine Half bred, 56-58— 131 Extra super — to Super 102 to 112 Average 9 to 1U Inferior 72 to 82 Medium Halfbi’ed, 50-56— Super 92 to 11 Average 8 to y Inferior 7 to 72 Extra Fine Crossbred, 48-50— Super Average 8 to 6f to 9 72 Inferior 6 to 6i Fine Cross-bred, 46-48— 8 Super 7 to Average 6 to 62 Inferior 5 to 5k Medium Crossbred, 44-46— Super 6 to 7 Average 5 to 52 Inferior 4 to 42 Necks and. Pieces— Halfbred: 8 to 91 Good to super Low to medium ... Crossbred: 5 to i 4, 62 Good to super ... 42 to Low to medium ... 3 to 4-1 Bellies— Halfbred: 72 Good to super 6i to Low to medium ... Crossbred: 4 to 6 51 Good to super 42 to Low to medium ... 8 to 4 Crutcliings— 42 to 6 Medium to good ... Seedy and inferior . Ol to 4 Locks— 4 Medium to good 3 to Seedy and, inferior . 22 to 7