DUNEDIN WOOL SALE

Press, Volume LXXII, Issue 21973, 23 December 1936, Page 10

DUNEDIN WOOL SALE

record top price FOR SEASON LOCAL MILLS OUTBID JAPAN AND RUSSIA SET THE PACE [THE PRESS Special Service.] DUNEDIN, December 22. After a period of low prices, when the average value of wool in Dunedin was about one half what it Is now, the first sale of the 1936-37 series today must have been extremely gratifying to wool growers in Otago. A record catalogue of 30,446 bales was disposed of almost entirely under the hammer, at an average price of £22 18s a bale, or lOd a lb, which means a gross return to the province of approximately £700,000. Competition was keen, and the most active operators were Japan and the Continent, principally Russia, with Bradford still prepared to allow its inelastic limits to be passed. One of the most interesting features of the day was the inability of the local mills, which usually secure the bulk of the super wools, to keep pace with the insistent enquiry from overseas. For the first time for many years Dominion operators were outbid, and the result was a higher price level for choice descriptions, which resulted in a top price record for the Dominion this year of 263 d. . There was a full bench of buyeis, representing all the consuming countries. with a considerable contingent of New Zealand operators. Condition of Wool Th<* wool was light in condition, bright, and well grown, and despite certain evidences of weathering carried no sign of break. Halfbreds were in keen demand, and sold well, and fine crossbreds were also readily disposed of at profitable rates. Coarse crossbreds, of which there were very few offered, showed astonishing improvement. and pieces and oddments, which at the northern sales had been cheap in relation to the value of fleece wools, appreciated in price, and went a long way towards closing the gap between them and whole fleeces. The sale was a remarkable one in many ways, owing to the extraordinary diversity of limits on which buyers were operating. There were many buyers who started bidding at 16d, and showed by later calls that they were prepared to go as high as 23d. Although the offering was disposed of in comparatively good time, it was nevertheless a slow sale, in the respect that bids had to go a long way before the bidders were reduced to two, who would fight out the issue, generally at a penny a time, several pence above the opening bid. Competition for Choice Lois

It is many a year since local mills had things so little their own way in their particular sphere as was the case to-day. They found themselves up against determined opposition from a single outside buyer, who chased the price with remarkable consistency, and in doing so set a new top price record for the Dominion. This operator seemed specially anxious to secure all the choicest lines of super halfbred and crossbred, and when they came up for sale, he bid with almost monotonous regularity. There can be no doubt that without this competition the rates for these descriptions would not have been as high as they were. An instance of competition that is worth quoting concerned a well-known brand, four choice lots of which were offered together. Local buyers started bidding at above 20d, but one voice persisted, forcing the price up until local interests withdrew after a 25Jd bid which seemed to be their limit. This happened twice in succession, after which Dunedin buyers secured the following lots at 25R The competition in this instance came from a well-known English buyer, who, it is understood, has been filling large orders for both Russia and Japan, and his determination with regard to super jots at almost every sale to date has been the subject of a great deal of comment. It is suggested that for Russia these quantities of high priced fine wools are paid for out of the proceeds from the sale of Russian petrol coming into New Zealand, the money for which never leaves the Dominion, but is held as a , credit against such purchases. The Coarser Wools In the crossbred section one of the interesting features was the demand for wools round about 46 count. Here American competition was a big factor frequently sending the price up to as high as 17d, which is a high figure for such wool. The enquiry for coarser crossbreds for carpet making was phenomenal, and in some cases buyei's paid more for this class of wool than was bid for much finer descriptions. One of the principal topics at the sale was the apparent listlessness of Bradford’s interest in the proceedings That Yorkshire could not be expected to compete with Japan and the Continent is proved by the estimate of one authority that Bradford’s limits were 3d a pound lower than the ruling rates

for halfbreds, and 2d a pound short of what crossbreds were bringing. Asked il j? re J( were . an y special reason for Bradfords attitude, a prominent representative of an English Arm declared that if the truth were known a good deal could be explained by the difference between labour and manufacturing conditions in New Zealand and at Home. It was noticeable that buyers’ valuations were exceptionally low, frequently as much as 6d a pound below what the wool actually brought. This is difficult to understand, since as experts they had spent some days examining and valuing the wool in store for their own purposes. Its effect on the sale was very noticeable. Those with low limits came into the bidding strongly, at the lower rates, but quickly faded out, finally leaving the floor to two or at most three buyers. This was particularly noticeable in respect of halfbred wools. OFFICIAL REPORT RANGE OP PRICES (PK««S 1940CUTI0K TILEGfUU.) DUNEDIN. December 22. The Dunedin Stock Agents’ and Woolbrokers’ Association report that the first scries of the 1936*37 wool sales was held to-day. The catalogues, which were submitted to a large attendance of buyers, totalled more than 30,000 bales. The wools displayed for sale fully represented the Otago district, there being on offer early shorn merino and halfbred clips from the back country besides Corriedale clips from well-known growers, and crossbreds from the coastal areas. The latter contained many stylish clips from the TapanUi district. The quality of the clips was exceptionally good, and was considered to be the best on offer for a number of years. The wool generally was very bright in colour, well grown, and lighter in condition than usual. Hogget wools showed considerable improvement on last year’s offerings, this being accounted for by the favourable winter.

Competition from the outset and until the end of the auction was very keen, and indicated a more widespread demand. The main feature of the sale was strong buying by firms representing Japanese mills. Continental and American orders were on the market, and it was stated that a quantity of wool was purchased for Russia and Australia. Although Bradford operators attempted to purchase lots suitable for their trade, their limits were too low. Bradford competition, however, was helpful to the sale. Local mills again were a contributing factor to the high prices paid for super halfbred and fine crossbreds. They, however, had strong competition for their requirements, especially for halfbreds, and In many eases they were outbi# by an overseas buyer. Before the sale it was considered that super qualities offering at this centre would result in high prices, but those realised were above expectations. This referred more particularly to super halfbreds and fine crossbreds. Ordinary crossbreds were firm on recent rates, and pieces were- considered to be firmer. A Dominion record was obtained for the first series of the New Zealand auctions, with the sale of four bales of halfbred, which realised 26Jd and was purchased for overseas. The grower was Ormaglade Station, Millers Flat. Following is the official range of prices:— Merino—d. d. Extra super .. .. to 24 Super .. .. ~ 21 to 22 Average .. 17 to 20i Fine halfbred, 56-58 Extra super .. .. 28 to 26 ij Super . . .. .. 23 to 24 j Average .. .. 18 to 22A Inferior .. 16 to 17 Medium halfbreds, 50-56

Extra super .. .. 22J to 23 Super .. 21 to 23 Average .. .. 17J to 20 Inferior .. .. 16 to 163 Three-quarterbred— Extra super .. .. 20k to 22, i Super .. IB to 20 Average .. .164 to 18i Inferior .. .. 154 to 16 Fine Crossbreds, 46-48

Extra super .. .. 19 to 20 Super .. .. .. 17| to 18J Average .. 16 to 17 Inferior .. .. 14 to 15? .Medium crossbreds, 44-46

Extra super .. ~ 164 to 173 Super .. .. .. 15 to 16 Average .. .. 14 to 14J Inferior .. .. 13i to 133 Coarse crossbreds, 40-44 Extra super .. 15J to 16 Super .. .. 144 to 15 Average .. .. 13j to 14 Inferior 12 1-3 to 13| Merino necks and pieces— Necks .. .. .. to 20 Halfbred necks and pieces— Super necks .. .. 20 to 20 k Good to super .. .. 13 to 13 Low to medium .. 10 to 12 Crossbred—

Good to super .. 11 to 12 k Low to medium .. 9 to 10 Locks — Halfbred. med. to good 8 to 9? Crossbred, med. to good 7£ to 9k Crutchlngs— ’ Merino, medium to good 10 to 14 Halfbred, med. to good 11 to 13 Inferior 8 to 10 Crossbred, med. to good 13 to 18 Inferior .. 8 to 11