Wool Sales

Cromwell Argus, Volume LXIII, Issue 3249, 6 February 1933, Page 5

Wool Sales

DUNEDIN. TRICES STILL FIRMING. All grades of fine wool improved on the December sale values from lid to 2d a lb at the second of the Dunedin wool sales held in the Burns Hull on Monday. A little more than half the catalogue had been offered by 1 p.m., I>\ which time the sales enabled t'he general trend ol the auction to be worked out. When the hi.e wools were of outstanding quaiit) - the improvement in values was even mom marked. Crossbreds also advanced irom id to id a. lb on the December prices, while the values for the tail ends of clips, especially lor iiccks and super, pieces, were phenomenal, in |ome instances the rise m value being 2d a lb. The sale was a united one and brokers offered their lull quotas, the total number of bales catalogued being 30,171 bales. Although prices are still below the cost of production, according to those in the industry, growers showed more readiness to sell and only in isolated cases were high reserves placed on clips. This resulted m very few passings.

The buyers were represented in lull force, but from- the outset it was noticeable that the Continental section controlled the sale. Their limits were more elastic than those*/ of Bradford, with the result that buyers represent--ing the latter were unable to compete. This quietened the tone of the sale, there not being the same animated competition as m the December sale, where all sections of the trade were keenly competing. After four years of dragging sales it was very pleasing to those interested in the wool industry to hear the improved prices 'bid bv the Continental buyers, wlio appeared to purchase with renewed confidence.

hollowing on the improvements in values at Home, the liner wools showed an advance in prices over the llast sale held here. This advance was also increased by the difference in the exchange, and values improved from 1 ,Jd to 2d a lb on alf grades of finewool. In some cases of outstanding quality fho improvement was even more marked. Crossbreds were also very firm, especially for super-quality showing any fineness. The advance registered for crossbreds was *d to id) a lb on the December pi ices.

Approximately £32 1,000 was raised from the Otago clips sold at tlie second 'Dunedin wool sale. At the rates ruling at the December sale the realisation would have been a little over £237,000 (says the “Star.*’) Growers realised an. average oi just under 8d a Ih, or £.'ll is a bale } as against =;.c/)d a Ih, or ,£.B 3s ad at the December auction.

The early tone was in evidence throughout the sale, which occupied nearly nine hours. Altogether 30,171 bales were offered, and at the close <ji’ the sale only about* 1.100 bales were! passed. A fair proportion of the passings has since been sold, it is only in cases where growers are holding out for excessive prices that the wool will bd carried forward. On the largest catalogue offered ut the sale the total passings were 2.072 per cent, while) the average passings were under 3 per cgut. Although prices were raised in valuethrough tiie exchange benefit and also ’through the slight improvement in Home v alues, the average per hale, ibr this sale will not be much greater than was realised at the second sale in Dunedin last year. Since February ol last year prices fell away, but they arc again on the upward trend. The exchange benefit to the producers is worked out at .£50,000. Referring editorially to the sale the

; -Star” remarks: —Monday's wool sale ot 30.000 bales will mean the distribution amuiigst Otago pastoralists and ‘larmers ot approximately ,£350,000, a hurried valuation per bale having been estimated at slightly over £ll. Another sale will be held in Invercargill on Thursday, when a similar quantity oi wool will be offered, and. as thiyre is little, if any, in the quality of Otago and Southland wools, tins week’s sales will realise about ,£700.000 in the southern half of this island. Producers oP the finer wools nave benefited In the increase in exchange. as not only has the value of their wool per lb improved owing to the keen demand for it, but the exchange is much more pronounced on 'the higher prices. Compared with 'ihel sale held in Christchurch last week, the prices obtained were quite on a parity, and it certainly looks as F tiie hardening tendemey in the values oT our better class wools is of a permanent nature. But, unfortunately, a large proportion of the wool grown in Otago, and Southland too is ov the coarser type, and for this there m. little demand, ami so far, very little improvement in value. For some of tins type of wool the improvement in prices was hnre'y represented by tho increase! in exchange. Apart from the firming of values lor finer wools, the most satisfactorv feature of Mondav's

sale was the keenness of the bidding' showing that at present prices there; is a strong demand for this product. Continental buyers were strongly represented. and on this occasion they were good buyers. From the strength of the buyers’ benches it is very apparent that the world is stjil keenly interested in our woof production. One cannot help being impressed with the. tremendous cost that must be ;fncurrcd by buying firms in securingtheir requirements under the present system of selling. T" maintain the heavy staffs of buyers, etc,, in the dominion must entail a very heavy expenditure, and when it; is realised that all these costs have to bei borne by the wool-grower, it must be regretted that there is not a more- economical organisation for the disposal ol our most valuable product. At the present time it is estimated that there are about 20,000 bales of wool stored m Dunedin that, owing- to the fixed ‘limits of catalogues, could not he included jn the last sale, and will have to remain in Dunedin stores until the end of this month before it can bd sold. fn addition to the sellingcharges, including the maintenance of the large army of buyers, storage ami ’insurance costs will be incurred against, this wool, all adding to the expanse of production. and in a season when every economy should be studied and put into practice. There appear to be many reasons whv tlie' present selling* system should be thoroughly reorganised.

Although a considerable quantity of wool was sent forward from Cromwell previous to the sale, very little can ho found in the: detailed list of prices. An outstanding sale appears to be that ot the Geordie Hill clip, of which 78 hales averaged just on jojd per lb. The average for the sale was Sd, and at that figure the value per halo was £'• is. Of those clips which can he followed we note the following prices: Kawaran.—Five hales halfbved pieces, o^d. Mount Pisa.—Thirty bales merino bid, 11 at yjd, 8 bales pieces ioJd it at y'd. O cor die Hill.—Twenty-two bales hall bred io;ld, 21) at io)d, y halfhred pieces lojd, 11 at y^TT. Mt. Aspiring.—Eight bales crossbred yd, () of pieces lojd, 11 at yjd. Lakeside.—Five bales fine crossbred ioJd, 5 at y.Jtl, <) at yjd, 6 at 7^d. Tiie Point.—Nine bales merino at bid. C riff el.—Five hales merino yid. Glendhu.—Ten bales line crossbred 1 o.' ; d, ii crossbred 7fd, 5 crossbred 6-Jti. Cattle Flat.—Twenty-three halos hall hied pieces iod. Ardgour.—Five hales ha If bred pieces io*d. forest Range.—Five bales halfbred pieces yjd.