PRICES RISE.

Auckland Star, Volume LXVI, Issue 208, 3 September 1935, Page 7

PRICES RISE.

SYDNEY WOOL SALES.

Values Increase 15 to 20 Per Cent at Opening. CONTINENTAL BUYERS BUSY. (United P.A.—Electric Telegraph—Copyright) (Received 10 a.m.) SYDNEY, this day. The Sydney wool-selling brokers' 1935-36 wool season was inaugurated yesterday before a crowded attendance of buyers. Values compared with the close of the last Sydney auctions in June were from 15 to 20 per cent higher, the advance being most, pronounced on wools suitable for Japan.

Comeback* and crossbreds were not sufficiently represented for reliable quotations.

Comparing values with those ruling at the opening sales last season, the market generally was 25 to 30 per cent higher. Greasy Merino fleece sold to 19Jd for 12 bales from Garah.

Tho offerings were chiefly from the north-west of New South Wales, the Riverina, and Queensland, and were of rather finer quality than last year, mostly well grown, with the proportion of vegetable matter much about the same.

Unusual interest was displayed, the chief support coming from Japan ar.d the Continent, witli good support from Yorkshire, and the local mills. Bidding throughout was extremely animated. It is expected that by the end of December about 1,418,000 bales of the new clip will have been disposed of.

The offerings comprised 11,511 bales, of which 10,458 were sold, and also 6617 privately. Rarely on the opening day do prices exceed 15d, yet yesterday the , best selection on the catalogue brought I9id, while sales at 17d were a common occurrence. Germany Prominent. The German section were prominent early, frequently outbidding the French and Bradford buyers for the higherpriced lines. The Japanese also took some of these, but concentrated chiefly on medium types. A London message states that at Bradford business was restricted. Following the advance at Sydney, topinakers protectively raised quotations. Bradford forecasts the maintenance of the present wool prices for at least a few months, and possibly an appreciation. The "Financial Times" says that indicative of the growth of confidence is the fact that retained imports in consuming countries for the first six months of 1935 were 3 per cent below the corresponding period of 103}, whereas in the first quarter they were 25 per cent below.

The favourable opening to a new Australian wool seaeon wae fully anticipated. Reviewing the position a fortnight ago, Messrs. Winclicorube, L'urcon, Ltd., stated:—

In a season when wool eupplies are plentiful even a slight downward trend in prices has some danger owing to the nervousness it promotes. This year the effects of the reduced quantities of the staple which will be available allay concern. The raw material position ie the dominant factor, at least in regard to Merinoe. Up to a point the cost of wool will be the definite influence on prices for tope, yarns and fabrics. It will only lose ita eway if values get too high, reduce trade and thereby curtail consumption at the mills. Average G4's toj« at approximately 30d in British currency should not constitute a danger point.

Trade has experienced eome lulls in Yorkshire during recent months, but generally business has been well sustained. Exports have been experienced in decidedly improved volume compared with depression years, and home trade has expanded. Public purchasing power in the United Kingdom has increased owing to greater employment in most industries. In the first five months of this year exports of British produce and manufactures were 15,000,0001b more than during the similar period of 1934. It is reasonable to assume, therefore, that the British trade will want bulky supplies of Australian wool during the coming season's sales. Similar circumstances prevail in Japan. Her foreign sales of manufactures have increased, providing more employment in her factories and assisting to create larger purchasing ability among her people.

No reason exists to expect that France, Germany or Italy will be less active on Australian markets than during the past season. The former country purchased with fair freedom, but the German and Italian competition was most restricted. Some arrangement which stimulated purchasing for those two quarters would prove very welcome to growers in the Commonwealth owing to the effect it would have on bidding for their product. Some months ago it looked as though floino countries which produce crossbred* extensively would carry over much heavier stocks into the new season than twelve months previously. The spurt in prices from April onwards, however, resulted in a larger volume of sales, and at the close of .Tnne the quantity on hand in Buenos Ayres was in the vicinity of half that held a year before. Production of crossbrede will not show the reduction which will be seen in Merinos, but an abnomally heavy weight of them will not be available. That position is satisfactory, ae an excessive quantity of crosebrede would result in them being substituted for Merinoe with ill results on prices for the latter.

■ Last season's wool cheque for Australia totalled £38,526,000, compared with £52,165,000 in 1933-34, and £35,043,000 for the season before. The price' per bale was £12 4/5 laet eeaeon, £19 7/8 in 1933-34, and £10 16/7 in 1932-33.