LONDON WOOL SALES,

Dominion, Volume 3, Issue 840, 11 June 1910, Page 14

LONDON WOOL SALES,

OPENING OF THIRD SERIES-A BETTER START THAN EXPECTED. nProm Our Special CorresfiondenU London, April 29, 1910. Onco moro interest is centred in Coleman Street, the occasion being the third series of colonial sales. Last Tuesday tlio usual large contingent of buyers put in an appearance, and all sections alike seemed to welcome each other. I liave always maintained tlia'fc at one stroke London can epitomise and set forth what is tho actual standing of manufacturing conditions, for there buyers carry out a progranuuo that has been shaped and determined during the interval at Home. In other words, tho existing needs of tho trade are clearly shown in Coleman Street,, and every series pass off eitiicT well-or otherwise, just according to the state of trade in Yorkshire and elsewhere. I am open to admit, that the majority came to the Metropolis last Monday quite "fit" for the sales, although crossbred buyers might have been in better fettle. So. far as thofo wanting merinos were concerned thero was notiling to be desired, all alike evidently being disposed to operate, although nobody liked the. piospect of having to pay more money. Still, that is 0110 of these things which clearly indicate the running stream, and .it is safe to conclude that users would iiot'pay 'lit long prices they are doing unless they had confidence in the course of values, or recognised that they have sufficient orders at home to ivarrant thani ill working on the basis they are. I have WiU tor a month- past that April and May would • provide the real testing time for the industry, and that if the third- series could be safely negotiated there would be nothing to fear during t tlie remainder of the season. That prognostication seems likely to bo verified to the very letter, for the trade at present is well supplied with the raw material, and the 170,000 bales which are available will, I fancy, be the i'agend of the current Australasian clip. However, tho whole trade came together last Tuesday in lairly good heart, although one could not help but discern a ■trfSe misgiving in the minds of many regarding coarse erossbreds. History proves that when buyers come together there is always 'in the aggregate a far stronger call and a more pronounced state of inquiry than when a person is acting independently, and we have even seen one buyer react upon the other, and in that way a basis of operations be established which has led to real lasting. good. '

■ THE PAST THIRD' SERIES. Let us go back into the past, and fee what has transpired at the third series of auotions during recent years. This will etiablo (is to see what has often-, times taken place at. this critical period, for during every April and May 'the trade is always well supplied with tho raw, material... What really determines values is the-actual conditions in manufacturing centres, a supply of 100,000 bales amounting to very little in the aggregate when'distributed over, .say, 1000 firms. However, May bring such 'a. critical time it is just as well to look at tlie course of prices. Tho following table shows the changes that have taken place at the third series of sales during recent years:— ' : Grease ' merino, superior: 1909, Id: dearer; 100S,.par. Grease merino, average, 1909,-Id! to lid. dearer; 1908. par to •}d. cheaper. ■' Grease merino, inferior:1909,' id. to Id. dearer; 1908, Id. cheaper. Grease crossbred, fine:' 1909, Id. dearer; 1008,' Id. cheaper. Grease crossbred, medium: Id., to lid. dearer; 190S, Id. to Id. (leaver. Grease crossbred;- coarse: 1909, Id. dearer; 190S, id..dearer. ' '■'WHERE VALUES. STAND. Perhaps the best -way to sot forth the above,is to see what was the price for corresponding qualities in. tops at the beginning of each third series (hiring recent yearns, and by considering the price,' of the combed article he will bo able to gauge whether prices a_t this, time have been dangerous, reasonable, or low. Tho following table shows what have been' the quotations for standard tops the last Thursday in April, during recent .years: ' . ■ 6-I's. sG's.' 50's. 'IS's. 40's. . d. d. d. d. d. April, 1910 ... 29 -24 21 17 .143 „ 1909 '...- 27! 21 171' 1-tt 12S „ 1908-... 22 17 15 ' 101 8J „ . 1907 ... 28 241 22 ISJ 17 1906 I.: 29 25 23 20 181 „ .1905 ... 251 201 18 154. 13 „ 1900 ... 20' 21 '18i ."13J 10} It will be seen from tlio above that tho price of 04's tops is exactly the. same today as,was the case in 1906, but tlio outstanding feature of all is 40's. At the: corresponding date two years ago 40's tops, changed hands at Sd. per lb., whereas today's price is anywhere froni-UJd. to. 15(1: In other words, while 1 64's have advanced 7d. "per lb. since April, 1908 (22d. :to 29d.), the price of 40's has gone.up GJd." This conclusively shows that crossbreds, even at to-day's price, cannot ho called cheap, but, of course, two years ago wo were suffering from a slump caused through the financial crisis in America. A FAIR GOOD OPENING. No less than 'three sellers put before the. trade a colonial catalogue, one other, broker offering yesterday a nice quantity of crossbreds from Punta Arenas. The show of merinos was. in no sense large or even representative, but for all that full: justice was done to.them. Both the home and Continental trades proved to be keen buyers, and it was soon apparent that fine wool still occupied the foremost posi-. Hon. Notwithstanding large supplies of direct arrivals, yot we are certain merinos will continue to sell very freely, and the opening advance bids fair to be improved upon before the finish. The Continental section, although there is reported to be less doing, gave evidence of being in the market for both merinos and fine crossbreds, the latter selling very freely indeed. All things considered, the opening was very good, and most people expressed surprise at the keen competition which ensued between the Home and Continental trades, tho former taking the bulk of the offerings. Even in crossbreds. wlich all along have been the doubtful quantity, competition proved to be better than was generally expected. When-compared with the close, of the previous series, merinos show practically little change, although the majority are quoting an advance of par to 5 per cent. I certainly think that in a day or two, when tho selection improves, the advanco will be fully 5 per cent. Fino and medium crossbreds were fully firm, the decline in coarse qualities being not always 5 per cent: Here and there a lot of 40's wool that was bought at tho close of last scries at 9d. came at Sid., but the competition on Bradford account for these was certainly good. The show of South African wools was small, but good, and prices were fully par. Punta Arenas sold very similarly to the New Zealand crossbreds. The sale throughout was good, and everybody appeared satisfied with the results. THE OUTLOOK. In speaking of the'outlook, Messrs. .IT. Dawson and Co. says: "Tlio talcs which open to-day have been fixed at an unusually early (late, in order to avoid the Whitsuntide holidays. This premature opening is somewhat inconvenient because of tho unprecedented manner in which arrivals have come to hand during the last few months. Including wools forwarded direct to consumers, as well as those for sale in London, some 1,200,000 bales of colonial wool will have . como into English ports during this year. The absorbing power of tho trade is, however, at its maximum; accumulations of tops are unheard of; combers were seldom, if ever, so harrassed for deliveries; while both spinners and manufacturers are extremely busy and doing well. Consequently, although tho financial resources required to lift such a quantity in a period of four mouths are heavily taxed, consumers face the position cheerfully, because of the rapid turnover which up to now has marked the year's business. The. unusually long interval after (he present scries will compensate for the past interval, which has teen n short one, indeed too short. It has, however, been marked Uv. a. steady, persistant inquiry