LONDON WOOL SALES.

Dominion, Volume 4, Issue 972, 12 November 1910, Page 15

LONDON WOOL SALES.

OPENING OF THE FIFTH SERIES. BOTH MERINOS AND CBOSSBREDS ADVANCE. (From Our. Special. Correspondent.) London, September 30, 1910. Once mora Coleman Street Wool Exchange vibrates with the yells and shouts of an animated host of wool-buyers, last Tuesday seeing the opening of the filth series of sales. There'have been times in the history of the tTado when buyers have coino together in more buoyant; spirit, but tho only factor which helped to curb tho enthusiasm of many was the important bearing of the present series of sales and what effect tlipy are going to have on wool values iu Australia where the season proper begins this week. It is quite in order to say that the trade came together last Tuesday in good buying form and although at current prices nobody can expect to see anyone enter upon a course of speculation, still, for all-that, it was'already a foregone conclusion that, prices .would more or less appreciate aiuf all come prepared to operate. Regular readers of this paper have been kept advised of the general course of consuming markets, and tho very fact of there being another slight improvement cannot surprise anyone. After all, 1 Coleman Street simply epitomises the actual standing of tlio raw material in such centres as Bradford, Boubaix, and other large centres, and at one stroke London demonstrates to the whole world the sound position or otherwise of wool. The usual large contingent of buyers put in an appearance last Tuesday, and nowhere was there to bo heard any note of dissatisfaction. The only complaint , was as to the dearness of raw wool, and all alike said that they saw 110 chance yet of any lower prices. There is no doubt that excellent manufacturing conditions in every country except the United States have played an important part in bringing wool prices to their present level, and it is certain • that there will have to be a slackening, in consumption or a .further material increase in supplies before prices get back to even a normal level. However, the whole trade camo together - , in a good buying mood, and at the opening it was plain to be seen that men meant business. A GOOD INTERVAL. Out of the immediate past there is always determined current prices for tho raw material. The past six weeks has been a time of real good to everyone handling the raw material, and this has been seen in tho way -prices have appreciated. Tho firmness of coarse crossbreds has saved many a firm from encountering rather severe losses, and without doubt tho upward turn of events has done more good than harm. Spinners have been especially fortunate in booking large orders for both singles and two-folds which will keep machinery running up to. the end of next March, and l more orders could have been booked if quicker delivery could have been niade. However, we have seen spinners in the same fortunate position before and directly prices have fallen considerable difficulty has been experienced in inducing buyers to take up their contracts. Hence we say that yarn spinners generally have done as much forward business as is good for the trade. It is all right being, well sold ahead if tlie buyer will take up the contract, but the > wool, top, and yarn trade is such, that'directly aserious fall comes, considerable difficulty is met with, which more or less disturbs tho equilibrium of the seller. Below wo show where prices stood at the closo of the July series and what were quotations last Tuesday' for good standard tops on the Bradford market: July Sept. Ad,2G 2G vance Description. d. d. d. 70's oolonial tops .291 30i 3 64' p colonial, .tops ......... 28J 29J- . i Go's colonial tops, : 27 \ 56's colonial tops 23J . 23!- i 50's . colonial 'tops 20} 20J- J--46's colonial tops,, .prep'd-.17 171; j 46's colonial tops, carded 16 lCj i ■ill's colonial tops, prep'd 14J 15J 1 JO's colonial tops, carded 13J- 14 J 36's, oolonial tops 13J 14J } | QUANTITIES AVAILABLE. . The. question of arrivals is one which is weekly watched with much interest, for by* tlio .wool .coming to hand we can always seo whether or no the. trade is well supplied with the raw material. As a rule tho September series sees tho end of the last Australian clip, but this series there will,bo a fair supply of Queensland new clip, which will help to "salt" the somewhat heavy quantities of carbonising wools which are certain to be catalogued. The follo\ving shows the quantify available compared with the corre-. sponding series a year'ago:— Sept.-Oct., Sept.-Oct., 1910. 1909. . : ' Available Available / New for New for . arrivals, sale, arrivals, sale." 1 Bales. Bales. Bales. Bales. N.S. Wales ... 25,000 11,000 17,100 .8,900 Queensland, 34,000 21,800 31,100 14,700 Victoria ... 7,500 5,800 8,500 4,500 S. Australia... 300 . 700 2,500 2,800 W. Australia 1,300 1,400' 2,200 2,300 Tasmania ... 200 300 200 200 N. Zealand ... 45,700 08,200 40,800 51,800 Cape aiid .<-... . Natal ...... 17,400 . 5,700 15,800 7,800 Totals ... 132,000 115,500 125,500 93,000 A SATISFACTORY START. The initial sale passed off well, thanks to' the keen competition on the part. of the Homo and Continental trades, and it was soon evident that slightly higher values wcro being paid. Tho show of crosshreds was good, and for these Bradford topmakers were well to the front. There was just wanting that touch of American competition to tighten prices for the very best wools, and ono does not relish the fact that further shipments of Australian wool have been sent back to' Coleman Street for resale. When compared with the closo of the last series the following, changes took place:—Grease merino, par to -id. dearer; scoured merino, no change; grease ■ fine crossbred, ■ par to Jd. dearer; grease medium crossbred, Jd. dearer; grease coarso crossbred,. Jd. to" Id. dearer; sliped crossbreds, Jd. dearer; South African merino, no change. The results generally camo up to expectations, except' in merinos, where -Jd. ' advance was fully looked for. When the selection is better wo feel certain the improvement will be more pronounced. The opening cloarly shows a sound situation.

Since the opening good progress has been made, the-initial advances being well maintained. Merinos are firmer, and the id. improvement is now more in evidence for good combing wools, but there is not mucn change in shabby, faulty scoureds. THE OUTLOOK. t 'Messrs. H. Dawson and Co., in speaking of the outlook, say: "The market opens to-day under conditions much more satisfactory to the sellers than to the consumers. Owing to limited supplies at a period of remarkable activity in tho industry, especially in the Home markets, values liavo made a sharp advance in most sorts. Prices of merino wools are too high for the manufacturer, but necessity is tho potent factor. Contracts must be. completed and deliveries, already behind tho duo dato in many cases, have to be. made. Consequently there seems to be little chance of alleviation duringi the next two - months, although everybody is cautious and buying only for immediate requirements. In merinos there is still a huge consumption, practically every spindle iu Europe being employed, but, nevertheless, business is being negotiated in tops for next year at considerable reductions from today's rates.

• Trade generally is good throughout the Europea.i in I us try, and especially in •England, but there are factors which will come into stronger play when the hulk «f the new clip ecmcs to hand. 'I'hoio will probably 'o nmther increase 011 the last year's record clip in Australia, and merino valjes at the present high level must certainly bo a barrier to another ■big turnover in worsted fabrics like last season's. America, too, is not likely to play so prominent a part in the colonial markets, as in 1909-10. The large expansion of plant and machinery in the States during the past two years has resulted in a slight over-production of the manufactured article. This, together with the disturbing political situation, will make American, users less keen competitors for n : short" period .at..least... ..They, possess ■hfenvy stocks of their home-grown wools— almost equal to the whole of this vear's

clip—and, roughly, they have nearly fifteen million pounds of foreign wool in bond. They have, however, such strong recuperative power, and, moreover, their homo wools have shrunk to such a'reasonable value—very near to exporting point —thiit.a reaction may be witnessed before the end of the year. They will hardly, however, be equal to a repetition of the exploits of last season in our colonial and London markets."