BETTER PRICES.

Auckland Star, Volume LXIV, Issue 16, 20 January 1933, Page 3

BETTER PRICES.

SECOND WOOL SALE. exchange rates help. almost complete CLEARANCE. An exchange sale! This might aptly be used as a. description of the second Auckland wool Qale of the present season, for the action of the Government in arranging for higher exchange rates was directly reflected in the prices offered to-day by wool buyers. Apart from the exchange, however, it seems likely that the results of to-day's fixture would have proved more satisfactory to the farmer than was the case at the first sale. The world's wool markets have shown a steady but. definite improvement during the last six months. Until quite recently this improvement had been confined to finer wools, but the last fortnight has found crossbreds sharing— though only to a slight extent—in the firming movement.

Finding the Bottom. In other words, it would appcAr that at long last bottom has been reached. That unfortunate condition appears to have been closely approached at the first sale of the season in Auckland on December 2, when the offerings were disposed of at only a fraction over 3Jd per lb. Dominion sales immediately following the Auckland fixture were even, lower, and not till the second Wellington sale on January G was the lost ground made up. Recent improvements at Wellington, Wangamii and Napier brought brought values very close to those ruling at Auckland's opening fixture. Definite Upward Turn.

To-day's sale is the first at wliieh a definite upward turn has been taken from the disastrous slump in the wool industry. With exchange rates necessitating a new valuation of every lot, it is difficult to make even approximate comparisons, but competent authorities held, the opinion this morning that a slight rise had taken place in addition to the increment afforded by the exchange rate. Offering of 22,000 Bales. To-day's offering totalled 22,798 bales, which had been entered by the various wool brokers as follow: — Bales. Farmers' Auctioneering Co., in conjunction with North Auckland Farmers' 5,597 X.Z. 'Loan and Mercantile 5,215 Dalgety and Company 5,886 Abraham and Williams 3,545 Alfred Buckland and Sons 2,055 Total •• • 22.7D8 The quantity allocated to Auckland for this sale was 30,000 bales, and until a week ago it appeared that the allocation would be fully utilised. However, the improved tone on the London market, which was confirmed by recent Dominion sales, seems to have encouraged farmers to the belief that the market was really rising at last and that still higher values might be expected later in the year. For this or some other causes withdrawals were quite numerous just before the catalogues closed.

Some Comparisons. The following table shows the results of Auckland's second wool sale in recent years and provides striking evidence of the slump that lias fallen upon the woollen industry:—

At the first sale of the present season rock bottom for Auckland was rcached when the average price per bale was down to £5 12/3 and the price per lb was just over 3id. It seems likely that to-day s sale may bring wool up to £7 a bale and a price approximating to 5d per lb. A Good Clip. To-day's clip opened up in good shape. The wool was well grown and sound, while carrying more condition than at the first sale. This was accounted tor through the wool being later shorn ana having more yolk. From the outset there was keen competition, with Germany particularly active both for coarse and fine wools. French buyers were also prominen , while Japan bid freely for higher grades. Bradford was definitely in the market, but worked closer to reserves than their competitors.

Satisfactory Clearance. Prior to the sale brokers had ous time adjusting their clients li:ante to suit the altered conditions, and th© fact that a good clearance was effected confirmed in their judgment. likely that well over 90 to per cent of the offering will have been disposed of before the buyers leave the city.

Average Average per bale. per lb. Total. £ s. d. <1. £ . 1027 17 3 4 12,009 348,000 1918 ... 23 5 2 16.09 518,750 1029 ... 18 11 8 12.837 498,880 1030 ... 10 5 1 7,123 140,404 « * 5 13 5 4.00 74,898 m2 ::: eu 1 4.734 121,254