LOWER STILL.

Auckland Star, Volume LXII, Issue 14, 17 January 1931, Page 10

LOWER STILL.

WOOL AT FOURPENCE. SECOND AUCKLAND SALE. PRICES DISAPPOINTING. MANY OFFERINGS WITHDRAWN. "Fourpence a pound!" "Passed." This was the call most frequently heard from the auctioneer's stand at the Concert Chamber to-day, when the second wool sale of the season took place. It signified that buyers had offered this price for the lot submitted and it had not been accepted. "Fourpence a pound!" "Fourpence!" .For good, honest fleece wool which, when manufactured into garments or other material costs many shillings per pound in the shops. Fourpence for wool which lias cost the farmer anywhere in the region of one shilling to produce! What wonder tluit in desperation lie tells his broker to hold the wool until the market rises? But —when will it rise? That is the all-important question of the moment. At the opening sale in November it seemed that bottom liad surely been reached. Wool was then sold at onethird of the. pricc it realised three seasons back, but to-day even November rates were not available. The World Trend. To those who follow market conditions closely tho trend of to-day's sale was not unexpected. Latest advices Jrom London have predicted a further declinc at the sales which commenced there on Tuesday, and this week's quotations for Bradford tops have shown a fall compared with those of the previous week. Manufacturers in Britain and on the Continent are obviously losing 011 the wool previously purchased, and are naturally ultra cautious in regard to fresh commitments. 1 Many Lines Passed. At this morning's sale 17,000 bales were 011 the catalogue but a fair number were withdrawn before the sale commenced. Presumably the owners did not relish market prospects and preferred to take their chance at the next sale in March. Of the lots offered a, big percentage failed to reach the reserves. Noisy and Earnest. The first catalogue was rattled through at a great rate, for although prices were low competition was extremely keen at the new levels. There was a large bench of buyers representing practically every wool using country ill the world, but buying was chiefly confined to Continental and Bradford operators. This comparatively small circle made up in enthusiasm what they lacked in numbers and there were deafening yells whenever a line of any magnitude was submitted. The condition of the clip was scarcely tip to the standard of recent years, due to unseasonable weather in the early i.pring. Still there were some very nice, clips and these evoked spirited competition. It is estimated that prices were down from rid to id per lb an compared with the Napier* sale earlier in the week and 3d lower as compared with the local November sale. . To Sell or Not to Sell? Even these lower values are considered to be above Bradford parity at the present time, and this raises the question whether the large percentage of passings was justified. The chief wool producing countries, such as Argentina and Australia, have been meeting the market by letting their wool go at the prices offered, but 'in New Zealand growers have held on to their clips. Large quantities of last year's wool are still held in New Zealand stores. So far the holding .has [proved unfortunate, ±'ov values are much lower than they were last season, storage charges have accumulated, while the wool in some cases has deteriorated -id per 'lb.

Yet the farmer who is offered 4d per ]b for fleece wool, and down to Id for pieces and oddments, can scarcely be blamed for refusing- to accept the market valuation, provided his financial position is still sound and he can afford to wait. Unfortunately many are not in that position, and the stage has now been reached where the big financing firms cannot continue to "nurse" the accounts of clients on the security ofstocks that are of doubtful value. A position of the utmost gravity to the whole Dominion has arisen. Finer Wools in Demand. While crossbreds were ruling at very low levels, finer wools, of which there was only a small percentage offering, realised much better prices. Thus a nice line of halfbred sent forward by Messrs. O'Brien' Bros., of Waiheke, realised Od per lb, and 13 bales of Corriedale, sold on behalf of Mr. T. L. Vining, .Kaiwa, brought Bd.' A pooled line of Southdown changed hand's at BJ<L