LONDON WOOL SALES.

Dominion, Volume 1, Issue 157, 27 March 1908, Page 10

LONDON WOOL SALES.

PINAL RESULTS AND TEE AFTERMATH. . [FROM OUIt SPECIAL CORRESPONDENT.] ■ . Bradford, February ,14. The' first, series of 'colonial wool sales are now a thing of the past, my. last letter being forwarded during the course of the final sitting. A week ago I gave, a brief summary of tho results of the series," and, as far as one can see,' there is little need to again sum up the situation. Good merinos throughout fared a long way the best, these making l full November prices, with an occasional Jd. advance for good shafty lots. -. Wasty, seedy;- burry parcels gradually fell away, until .tli'e.'decline'amounted from }d. to Id. There is this season such a surfeit,of these wools that' it' is somewhat difficult to'.see how they can improve, and all the more so when'the woollen trade is unmistakably r showing signs of reduced activity. Crossbreds have been'tho dark horse, and, excepting .for fino halfbreds, prices showed a penny fall. ' It, is here that New Zealand pastoralists will feel it the most, for .tho trade is docidel.v quieter, and demand less pronounced for medium and coarse, qualities. I don't think' I can do better, as'showing tlie great change that has come over crossbreds, than ask ■ the reader's attention: to the fol-lowing-table where the current prices at the corresponding series a year ago are contrasted with; those just made:— ' Closing quotations, v. v- .Current. Ist series, ' ; •" ' prices. ' '1907.' ' , d. d. d. , (1. Grease crossbred; fine... .... ,10} to 15} 12 to 1G Grease crossbred; medium '8 toll .11 'to 13V Grease crossbred, coarse ... 7 to 9} 10 to 13} Grease, crossbred, pieces and ' „ looks ... ■' ... .3Jto 61 Gto 9 Grease crossbred, lambs ... 7 to 11} . 9 tol2l Scoured crossbred, fine i, 15} to 22}': 17- to2l '■ Scoured crossbred, medium '. V and .coarse' .... :...' ■ 8};to"l5} ai ito 17} Shpe crossbred, fine "... '9 to 15 111 to 18 Slipe crossbred; medium ... . S to 12' 11 tola} Slipe crossbred, coarse ... - 7}tolo} 10.} to 13} ■ SOME ASTOUNDING DIFFERENCES. : One of the most astounding facts in connection with the wool situation is the great change which has come over crossbreds. For years the fleecea of the mutton. breeds have been at a premium,' thanks very much to some big military demands, and : fashions favouring tweeds. To-day both are more or less and the former ; are reduced to the minimum. '.A general contraction in woollen and ; worsted manufacturing districts, both in Yorkshire, on tho' Continent, and much slackness in America has all had the effect of causing .users'.to reduce their pur- ■ chases, the result being a very sensiblo reduction in actual prices paid for crossbred Wo ii'i - nive .taken the trouble to look at well-known representative'wools sold in London at-the recent series, find what the selfsame clips made at .the corresponding series a year ago. The following are the top .prices made for well-known'marks:—

BROKERS' OPINIONS,

I don t think I can do better than give the different opinions of selling brokers. Messrs Charles Balme and Co. say that, "in view of the. course of events during the past three months, current prices for merinos must be considered satisfactory. The consumption of this class of wool is large, and at present quite equal to the supply, so that, although values in London have been slightly above those ruling in. the manufacturing centres, there seem to bo no grounds for anticipating any further reduction. As regards crossbreds tho outlook is somewhat obscure; the Bradford export trade in tops and yarns has recently been very quiet, and until there is somo recovery in the volume of business with Germany, which is the principal outlet, it seems _ improbable that there will be any material improvement in prices." ' Messrs. Buxton, Ronald and' Co. say that "in new of tho generally adverse trade conditions on tho Continent the .result of these sales, as far lis merino wools are concerned must bo considered satisfactory. Tho long continued spell of dear money during the closing period of Inst year has told its tale especially, in Germany, and imparted a feeliny of uncertainty and distrust ns to thn futuro. But as soon as tho sales opened all doubts were dispelled, and it was at onco soe;> that tho' strong statistical position of th'n articlo was going to assort itself, and the subsequent course of the. series boro this out in no uncertain manner. The industry in this country meanwhile is healthily engaged, and mills are generally moderately well employed As foreshadowed in our circular at the close of the preceding series, consumers hare realised the fact that the recent basis of' values was on mnch too generous a scale, and appear to havo decided to got prices down. Dear money here again lont its aid, and ericouragcd by this, speculators have lately been freely offering tops on a considerably reduced scale to that even now ruling on the London mar-J

ket. This in its turn has made users go very slowly, and only but for immediate wants. Tlio crn.t of tho position is that new orders at present aro absent, and are badly Wanted to take the .place of old'contracts running out. Further, the export trade from Bradford to Germany is still , in a bad , way, but should this recover, its influence would bo felt at once."

THE OUTLOOK. Messrs. H. Dawson and Co., in speaking of the outlook, say: "Our industry has met with stormy , weather during the past three .months, and, although the gale is over, there remain evidences of damage and loss. Naturally people have been occupied in protecting their interests' and reducing their risks, rather than pushing business or undertaking new ventures. The recovery of confidence is a slow process, and there is stil! a perplexing and unsettled market. " Considerable disparity now exists' in tho relative prices of different qualities, and in some of tho coarser \yools there is yet no tested basis of values so far as tops and yarns aro concerned. The only thing which': the present sales have clearly sliown is that, despite slackness and lack of' confidence in many manufacturing centres, there is a remarkably steady and persistent demand for merino combings, so much so that values have lardened oven in the teeth of a general depression. Consequently it becomes impossible to think pessimistically of merinos, notwithstanding a somewhat lessened consumption in the worsted trade. "The general position appears to be one of comparative security when the whole 'account is checked. There are new and increasing demands for merinos from the East; the year's clip was never more urgently awaited than in October last; and the absorption is already well ahead of most years. There will also be a decrease in the year's supply of Australian merinos, estimated at 80,000 to 100,000 bales., These .are factors to set'against any decreased consumption caused by; reeont financial troubles, and tho former, comparatively high values, which have, of course, eased down materially since September. ' " In; crossbreds a more difficult and intricate situation has to be faced, and already values have suffeied a considerable shrinkage in medium and common grades. - Tho next interval will determine if France, Germany, i-nd U.S.A. will-como to the aid of Yorkshire in tho . .consumption of these wools, now tl* at prices have declined * to a ' reasonable level. There are signs of increased interest and activity with regard to the stooks in Roubaix and Germany, and during tho past days some large transactions in old stocks are reported at low rates.. This' is the first welcome step towards betterness. Meanwhile the'low prices will do a good deal to create 'new. demand. Some holders have a pood' opinion of the future,, and would not offer their crossbreds _ 'at > tlio series just closed." They take the view that most of tho adverse influences which'liavo affected the market are passing away, and that a goneral improvement, may occur. ■ i. , 'GENERAL; WEAKNESS: Nothing but stagnation and pronounced depression can be reported about the Bradford .market. London's close found things actually worse, than .when the recent series-of auctions began, and what is going to be the upshot of ;it'all'it is, hard, to say. Bradford.'to-day seems •to be " completely under the spell of outside' factors, which is causing very prices to be accepted, and which lias ■ the effect of dimming the outlook. It/ is common knowledge that a. big'weight of 40's prepared tops have been sold forward for summer delivery at ! a shilling per lb., and to-day as much as lid. per. lb. difference,, obtains .in ..the. .quotations, for -10's. Wliat all this cheap" selling means it is difficult ,to say,, but no, doubt ( users have their tlio next. March' (series*bf-'salesi' Unles's : tliero' is a vast alteration, cannot help but )jo. lower, and it is to bo sin- ' cerely hoped that .both-Germany and America will be .in better form for ; buying tlian recently. Certain it is-.that Bradford going to give material support to crossbrcd 'Values unless tliero is a sensible addition of yarn..orders,. and. at present.new,.business is > entirely, 'absent.' ••.•TKe'ifaot-'-of ' the.' matter, i 8, 1 trado. is. decidedly, more .quiet thpn for . a long time back,,'and everybody' is .fearful of. what probably -will never happen. , To my mind both prices and trade are being talked down to about, the vanishing, point, and when • the worst is known, then it will be' seen that things are not so bad as some liavo tried to mako out. ''It'is-very'difficult indeed making an impression upon market values when things aro so quiot, everybody seemingly being incline,di.to .hold, off.iintilia,.more,, set tied policy shows| where 'tie : '* Merinos aro nothing like ,as ,weak as crossbreds, . but at the same time lessrmoney' has been accepted in several cases, both for present and future deliver}'. Plenty quote super 60's tops id. down, and I am certain 25Jdl would buy a good combing—a price that was not, ruling three, weeks t ago. If there- wero any stocks, of; tops, .prices would have 'fallen ■liko crossbreds, • but combers ".are' making deliveries with. all possible,, speed, and ".so far Botany, spinners ate keeping. ( all their frames going; .'There. is' not .'-.that fear': felt over tlio •future of "crossbreds that there 'is in merinos. Mohair is as slack ns xver, and little is iloing. Tho best olassos ' of Turkey hold their own, but all Cape sorts, especially firsts, are sagging, due entirely to a'very limited demand.'

• January January ■ ' • price, prico, '■ v .1907. 1908. d „ d . -.. Motuotaria 171 j,u Crook and Bundle ... ... 1GJ - , 141 Leefiold -... ... : ... 35 , . . 1,1 i Stonyhurst ... ..; ... 15-1 . lif ■ Jf- D - - •••: 1G1\ U ■ gumma ... , ...■ •... ]5 u Biookdalo ; ... 154 ]3i ? al , d ° n '■ 151 . li ' . Ludstono , ... ... ... i e { 13 Foukawa 351 13 ' Humming Beo ' • ... 15 13 Tauroa: ■ ... • ... ir ' n. Crissoge ■ • ■... j 5 j ' 13 %L»ll ia. diamond. ... ,..'15 VH : Hiku ... ■ •• ... ...' m - jjjl v Bangjr ... ... ... ... 15 12 J • OlriK .: jn 19 i . A. Bell/Piako ... ... n ■ V Tenakoo ir. 11 JNW in diamond ... ... 14J -