ONDON WOOL SALES.

Dominion, Volume 1, Issue 139, 6 March 1908, Page 10

ONDON WOOL SALES.

A BETTER START THAN EXPECTED. ' "OPENING OF THE. FIRST, SERIES. AN'EXPERT, OPINION ON THE OUT--LOOK. , _ ' (fEOM OUB SrECIAL CORRESPOXDEXT.) ■ January 24. "' The first series of colonial wool, sales opened last Tuesday, Coleman Street Wool Exchange bein'g filled to overflowing with an anxious crowd eagerly waiting, to 'know the initial results. More than usual interest surrounded the. opening,, due entirely to the course of prices during; the interval. Towards the end of last year things in Bradford were very slurnpy, .while also Continental futures dropped soverely. I don't think I can do better, as showing the general course of prices, 'than' give a table of standard wool commodities at the close'of the last series, tho end of 1907, which, was tho lowest point,- and at the ing of the-present series:— 'V '

- Dec. 10, Dec. 30, Jan. 21, ' . • • • 1007. , 1007. 1908. d. d. d. ,'0 s colonial 'tops . ... 27J. , 27 281 G4's coloifial tops ... 2GJ 20 27i GO's colonial tops, super 20 . • • i 2 5 :-' • '2fi 56 : s colonial tops ... 22J 22 • fw.J50V colonial tops': , /19\ ,ig , jgj, (G's colonial tops • ... iG.y -16 16? 40's colonial tops ... ■H ' 12i 131 3G's colonial tops ... 13 ' ,ll| 12r , The . experience of the last two to three months' in the wool trade lias been very depressing, all due to' financial stringency, a high bank rate, and partly, shaken confidence. However.-with the turn of th,o y ¥ ar arid more favourable monetary conditions, a change for the better set in, prices have partly advanced, and. now, the : verdict 'of Coleman Street is awaited to see if - things are sounder than many suppose. - THE QUESTION OF SUPPLIES. . The wool trade-to-day is largely absorbed !in dealing with arrivals of direct imports, and this aspect of tho situation will enter largely into the question of price for the next three months. It is well known that Australia s .last clip was an early one, and up VnL c l lt ': of . ' a , st , Dc «mber something like bales had .been shipped from Austrailasia for the first) six months of the "wool year ■or an increase of 80,000 bales up to tho end of December, 190 S. This means that'the trade is confronted-with some heavy .weights bf wool u hich will have to be .tackled during tho next two or three months. Tho bank rate (laving come down to -1. per. cent. means considerable help to importers, but they will have ncecl,tosi»'arrivalsiniovc off quickly to satisfy bank .officials. It .is well known that .tho heads of financial institutions aio at 'present in a very carefulj and enquiring mood, knowing, as they do, that upon all imports a heavy loss will. have to bo faced. Germany ■ seems likely to suffer the most, while many Bradford nouses vail also find their financial resources heavily taxed before effectually liquidating their Australian purchases. Regarding supplies, the quantity available for the current series is larger-than for some time back,- and the following table is well worth analvsing. Jn tho first column I show the actual gross 'arrivals for tho January series; in the,second the not quantity available; and in the third, what quantity of New, Zealand wools—mostly crossbreds—go to make up the net ..available bales for sale at'the current series:— , , , , Gross. Net. New Arrivals. Quantity. Zealand. Bales. Bales. Hales. 1908 ... 353,300 , 187,000 38,000 ' ,1807 ... 275,000 155,000' , 37,000 '> 190G ... 291,500 ,165,000 28,000 '.' -< 1905 ... 235,000. .147,000.,. 29,000 1901 ..... 190,000 .137,000 • 39,500 1903 . ... 21(J;000 141,000 42,000 . 1902 • ... 211,500 193,000 59,000 1901 ... 250,000 *339,000 70,000

_ *133,000 bales were carried forward from tho December series, 1900, to the January series, A NEAR SHAVE. Last Tuesday morning opened dark, dull and grey, a dense fog enveloping everything. It was perilously near a miss, but by 9;30 a.m. tho darkness somewhat lifted and all buyers turned out. It proved to /be more or less a ground fog, for when we were hoisted five and six stones high ■ to where tho wool was on show wo could see fairly well. Three catalogues were put before tho trade on the opening day,- medium merinos largely predominating. From the number of familiar taces round valuing it was plain to be seen that there would ba a full room, and frequently as friend greeted friend an expression of opinion was given as to how things would go. Aobody felt inclined to predict a rise but few prophesied a fall.' Crossbreds wero ovidonlly the dark horse, it boing the general opinion that fine wools when of decent character would hold their owii. Perhaps Continental buyers were in less form than usual for expressing an opinion, and wisely they refrained from saying much till they saw how things went. '

The wools on show for an opening day were mostly suitable for tho home trade, and buyers worked hard and valued well. There was nothing suitable for America with the exception of a few nico lots from Victoria, and the crossbrcds were not of sufficient character to tempt lanlceo buyers at all. .However, tho catalogues were gone through thoroughly, and nothing seemed to have been missed

At ■( n.m. Coleman Street Wool Exchange presented a very animated appearance, every seat being filled. At the very start competition proved to be keen, bids wove given frcelv, there was nothing of that dilly-dallying and hesitancy that characterised the opening at the last series, everybody putting in their full price straight off. It. was really a treat In see the light for straight lots of/wool, and everybody remarked that bidding was more animated than at any time iu November. This much can be said, that moro competition and spirit was seen about the room on tho opening night than at any time last series. Tho homo trade led tho van, supported mostly by 1 ranee. Germany was less active, as could only bo expected, though some nice parcels went to that quarter. But Yorkshire buyers wero to tho fore from first to last, and withdrawals were very few indeed. It was gooh evident, that merinos wero making fully last sales closing rates, and crossbreds were taken with avidity by Bradford. "In a word, tho results of tho initial sitting proved to be better than was expected, and everybody felt pleased that prices should be made that'showed praetieaily no change on last series. Tho following table shows tho alterations:—'

Good to super combing , merinos : Par to Jd. advance. Average combing merinos Par. faulty burry merinos ... Jd. chcaper. l'ine crossbreds ... ... Par. Medium . crossbreds. ... Par.' Coarse crossbreds ' , -... Par. to 2d. cheaper. blipy crossbrcds ... ... id. clicq.doy.

Wednesday and succeeding sales saw brought |. 01 i] V ' u a P B 'ter selection' in all qualities, and tuliy opening values continue to rule. The most pleasing feature ..continues to bo. good general competition, America buying a few lots ot the best merinos and crossbreds, and Germany mifUt be more active. Still there is keen competition,, Yorkshire taking the bulk. I.i i't n 9 ,r V' nntecl ' s " rm Inish to dispel Uie dark clonds that have been hanging over the wool world, and to give, fabric buyers to see that after all prices are sounder than was k' o ' ,o rally supposed. Coleman Street does not l ' e i it a a " l 0 P cs siniism of some quarters,and the tone and spirit now seen'should galvanise .into activity all other markets. If men can only be inspired with confidence then we have seen the worst." THE OUTLOOK. Messrs. 11. Dawson and Co'.,' when speaking on Uie outlook,, say ."the opening of the present series is being awaited .with anxious, interest in every branch of tho industry, .and its verdict as 'regards values will do much to determine the policy' and settle the course of business. The, past interval has been one ot anxiety anu uncertainly. Great, hesitancy in placing orders has been the feature of the r.iail.els. and to-day everybody; hopes- for the fixing of a baais of values. '•» J ; I acute and world-felt financial crisis has tested the stability of the industry severely, but the line wool branch of the trado has suffered \o a minimum t/xtent only. Happily; the money stringency is passing away. Discount is no longer at ajprohibitory rate, having eased in,all the centres, and further re<<,n! n!l ' V i expected in the near future, n. ill P---J l uieri ®® 11 situation is more hopeful, although there is at the,moment a natural reduction of output. The . stocks in domestic quarter-blood wools are considerable; but Ausitrahan wools and merino combings, generally which are chiefly , wanted,.'are very 'lightly stocked, and in . good. request. There are indications that U.S.A. will be a stead.v operator m the London• market throughout the year, especially seeing that their purchases 'have c 9mP fl '"* l^i vely small in the colonies. ihoi stocks of merino ,tops in Germany aro alsoi at au extremely . ldw, if not at a "record, level, and there, as elsewhere, despite the financial trouble, the nosition in the industry, is much alleviated by the fact that stocks of merinos . are .light, 'ami that the machinery is closo to the supplies. Combing nulls, in all centres' testify, to the fact that as quickly as the tops aro - combed they are required. ■ .

"It is possible -that the year may see a' somewhat restricted activity, compared with the great rush of the past two years, but tho now clip is so well drawn upon, already, and stocks in. .the, mills are so light, that pood stapled merinos occupy .a. very sound position at the present level. The. easiness in faulty sorts is a necessary rectification, which is duo to the heavy proportion of noils (now at a' low price ami slow of sale) produced from these faulty wools.. Without any reduction in'the price of' tops adjustment is necessary to put vnlues rirhfc hero. - -

"The situation 111 regard to crossbroda is. however; not yet satisfactory,ulcspito the salntarv ollcct of the clearances of. wools in Liverpool at. Buyers values. Improvement is blocked by tho stock of crossbred tous in German and Drench combing mills, which" are dribbling off, as yet, at a very slow rat?. It is hoped that the present sales' will, put-an end' to. the prevailing- uncertainty ' hud .lack - of'. confidence. The lower pnc»s : how current must help to stimulate- demand, with the better tone, in financial.'- circles', and in the merino trade, should, assist, in. the'restoration of confidence.

Hid bank rato yesterday /.'was further reduced to 4 per cent.—a very satisfactory feature indeed. J