KEEN COMPETITION.

Auckland Star, Volume LXIV, Issue 2, 4 January 1933, Page 4

KEEN COMPETITION.

SYDNEY WOOL SALES, j i 5 PER CENT INCREASE. JAPAN ACTIVE. j SYDNEY, January 3. At tie Sydney wool sales to-day 11*598 j bales -were offered and 11,117 were sold, j Also 615 bales -were sold privately. Tie market opened with keen general j competition, Japanese buyers dominating the bidding. Prices, compared with December dosing rates, showed an all-round advance ot 5 j per cent. Greasy Merino sold to 153& eL | LONDON WOOL SALES. SURVEY OF CONDITIONS. TEXTILE POSITION ASSUMING. A. surrey of the London wool sales which begaa on November 22 is given in a circular publication of Messrs. H. Dawson and Scsis and Co., Ltd.: — The past interval has been encouraging in most respect 3. Reports from all mar sets have indicated general activity. Demand haa been good at the principal coßStimmg centres, and consumption is still at the highest level known during the last decade. Combing mißa in every centre appear to be running at full tilt day and night. Most spinning mffla are also working fell hours, and mule spinners _ generally are wotting on a two or three-shift basis. This latter feature is dee to the demand for hand knitting wools, chiefly in Merino sorts. Unemployment has happily shown a gnbstantial decline throughout Yorkshire. The colonial markets are selling freely, and axe being well supported from all sections of the trade. Prices have, however, ruled in buyers' favour as compared with the level of the last London sales. Disturbing Features. The only disturbing feature in the otherwise improved situation 13 that prices sufficient to show a margin over working expenses are extremely difficult to establish for tops and yarns. Thi3 is particularly evident in the worsted spinning secacmy both in England and throughout Europe, where the price-cutting competition seems totally unjustifiable, considering the amount of business available. Naturally, an extremely cautious and nervous undertone remains after the experience of falling markets daring the past five years; but against this, the rapid absorption of all supplies in Merinos and the finest grades of crossbreds has to be recognised. Stocks of tops in Continental centres have substantially declined, and in Yorkshire" the supplies from the combing mills are being cleared as quickly as they can be produced. Altogether, we face the opening of the November series in London under more healthy conditions than at any previous sales during the year. The quantities available axe not heavy, and most of the old wools in fine grades have been cleared. A more hopeful outlook for crossbreds, owing to the revived demand for medium grades, is mainly due to the call for knitted goods. "Within the textile industry itself the general position is becoming much more assuring. The wool trade, as expected, has come out of the morass more quickly than some of the heavy- trades such as metals, c-oal and shipbuilding, but even these industries are issuing more hopeful reports. Meanwhile, more than a quarter of the Merino supplies have been sold in the overseas markets, and the disposal of available quantities is well ahead of previous seasons. Japan, Germany and France are keen buyers. Yorkshire has not yet operated to its fullest extent. A Minimum Price. As regards raw material, wool is generally accepted as being too cheap, and one should not be surprised at the strong feeling amongst many growers in Australia, that something should be done to fix a minimum price, or restrict exports. Unfortunately, all previous experiences of such attempts, to prop values by artificial methods, discourage this Mea, however sympathetic one may feeL The recent experience of the American Farm Board is a, sufficient warning. The best incentive to higher values, which are undoubtedly needed by the producer, is to encourage a, greater confidence in the position, and to widen all the channels of distribution, to which high tariffs and other restrictions today are the greatest hindrance. The prices ruling for crossbred sorts are ridiculously low, and lower grades are near the lowest level (on gold values} ever known; with any return of confidence, these wools should soon see a substantial advance. There are still disturbing political factors on the horizon, but the finann'al position, at Home and in Germany, appears to be quietly but slowly improving. It is also possible that the American elections may help to bring some alleviations in tariff adjustments during the next year. The present position, whereby exporters cannot get remittances from several countries in Europe and South America, is strangling new business; but, despite the nightmare of quotas, licenses ana varying exchanges, the fact remains that shelves are empty of manufactured goods, and the consumption of wool still remains at peak level. COMING WOOL SALES. SECOND AT WELLINGTON. DETAILS OF OFFERING. {By Telegraph.—Own Correspondent.) WELLINGTON, this Aiy. The second wool sale in Wellington will take place on Friday. There will be 30,000 bales offered, the maximum allowed by the New Zealand wool committee. While it is not expected the prices will change much from those of last sale, a slight firming is thought possible. Appended is a list of the bales offered by the various brokers:— Levin and Co., 7090 bales; New Zealand Loan and Mercantile Agency Co., 3820; New Zealand Farmers' Co-op. Distributing Co., 3342; Wairairapa Farmers' Co-op-Association, 1528; Abraham and Williams, and Wright, Stephenson, 4001; Daigety and Co., Ltd., 6873; Murray, Roberts and Co., and Johnston and Co., Ltd., 3344. Total, 30,000 bales. The Wellington sale will be followed by sales at Napier on January 11, Wanganui on the 16th, and Auckland on the- 20th.