LONDON WOOL SALES.

Dominion, Volume 4, Issue 1165, 28 June 1911, Page 3

LONDON WOOL SALES.

. AKOTIIKK EXCELLENT STAHT. (From Our Special Correspondent.) London, May 12, 1911. It really is delightful lo see vho amount of energy anil enterprise connected with the wool trade, ami il ony colonial gruffer could ouly ytci> into ■ Coleman Street Wool Exchange and witness the sights wliieli are lo l;e seen In; would naturally think thai half the inhabitants of the world were going naked. -the whole trade came together lust Tuesi.ay in very good heart, the occasion being the opening of tho May series of sale;;. Only six weeks have elapsed since Uie termination of the March series, yet a good deal of water has gone down Bradford Beck sincc that time, and woolcombers' suds liavo cleansed a by-no-means small amount of colonial-grown wool. However, there is still remaining on hand sufficient buying power to give a good account of itself 1/otoio the present series finish, and I am certain that business is so good in consuming centres that we arc in for another very good series. London at one stroko si7.es up the actual standing of the raw material, and this I am convinced of as each _ series como and go. No doubt it is possible for anyone to get a falss impression of what conditions are like in such centres as the West Riding, especially when many people try a game of "blufi" in speaking about tho actual state of trade. Oftentimes honest effort to report actual trade conditions are thwarted, at least soroo make an attempt to create a wrong impression, especially .when tho object before tho writer is to give the grower full details of the situation. In London there is no disguising tho fact that the way the raw material sells is a reliable criterion of what conditions actually are, and the opening in Coleman Street is certainly fully as good as the most sanguine expected.

QUANTITIES FOB THE MAY SALES.

'It will well repay the reader lo analyse briefly the net arrivals lor tho current series. They are larger than they were last year, but nil Uit sami nobody has expressed any surprise or manifested the least concern over the 201,0110 bales which are availablo for sale. Why should they i" We have known tiroes in the past when there has been available over 300,000 bales, and yet tho entire lot has been disposed of. To-day the consumptive capacity of tho trade' is at least onethird larger thnn it was in (he 'nineties, hence buyers came together on Tuesday in good heart, and fullv prepared to lilc tho wool in sight. Although there is about 30,000 bales more than was the case at tho corresponding series a year still there is . a less supply of New Zealand crossbreds, and therefore more merinos nre available. - At the same time it should bo borne in mind that when tho present' sales are over .there cannot possible .be but n verv small quantity nf crossbred wool available for the succeeding series this year, lumce wo are certain that buyers will in no sense remain inactive, but will purchase largely for future renuiremcnts. The following table shows tho new arrivals and quantities available for the May series of London wool sales, compared with the corresponding sales last year:—

AprilMay scries. Mav scries. 1911. 1910. Available Available New for New for ! arrivals, sale, arrivals, sale. Bales. Bales. Bales. Bales. Svdncy and Queensland 78.050 31,250 72,750 19,050 P. Philip .... 70.150 22.059 91,900 10,909 Adelaide ... i:i.550 13,750 9.900 5,100 Swan Paver... (i,400 8,800 0,150 8,330 Tasmania ... 17,050 7,150 11,709 0,200 N. -ZcMnnd 125.100 102,100 198,000 107,3.10 Car-o 30,300 12,400 37,300 8,000 3GG.COO 201,100 .131,300 103,800 AN EXCELLENT BEGINNING. Fully saudied as lo what was likely to obiani ac the, commencement, three selling uroiters put before the room iast 'iiicauay caiuiugucs somewhat better limn usual, this no uoulit bruising out all tiie latent buying power el tne trade. They could not Have done a better thing. Buyera lelt there wn<> something wonh competing lor, and at current ratos merchants and importers cannot be wir-.aly advised to hold nack supplies. As one went round valuing on Tuesday morning, it was evident that a spirit of cheerfulness and conln.rnce ummalcd liie r.ajnivv, uii au.Co feeling that another goo;l series was. certain. True, the question was agitating some minds as to whether or no the top notch has been touched respecting trade itself, but it seems to seven, that tho orders to which many firms arc already committed'wero quite sullicicnt to warrant users lilting the wool in sight. Punctually at i p.m. the ball was opened, and from first t'o last competition was exceedingly keen. The bulk of the buying this series is undoubtedly going to iio done by the Homo and Continental trades, although America is represented in Coleman Street by three or lour firms. Still, nobody is looking for any activity on their part, though if they had to come into the'. market, they cemd soon iuHuencc prices still further in an upward direction. New Zealand crossbreds bulked largely in the first day's catalogues, but tho home trade rose to the occasion in [i first-class manner, competition being very keen and fully, up to the best of last series. There was also catalogued a reasonable quantity of South African descriptions, but the wools were only of an average character. When compared with the close of last series tho following alterations took placo:—Merinos, par to 5 per cent, higher;.fine crossbreds, par to 5 per cent.. higher; medium crossbreds, par to 5 per cent, higher; coarse crossbreds, 5 per cent, higher; coarse crossbreds, sliped, 5 per cent, higher; South African merinos, firm and unchanged. THE OUTLOOK. Messrs. H. Dawson and Co., in speaking of the outlook, say: "Tho present series opens under conditions which arc unusually satisfactory. From almost every centre conies tho report of a rovived demand with improving values and a well-main-tained consumption. The reaction lrom the unjustified depression of the new year has been complete and thorough. The persistent strength of tho machinery call is the all-potent factor. Any difficulty in the industry during the year has pertained to values and' margins, and has not shown itself in any decline of turnover or consumption, which havo been remarkably sustained. Combing mills havo difficulty in. coping with the pressing demand lor tops. "Tho strong favour shown for merinos in every centre has again caused the year's production to bo fully absorbed although it is a record supply. The available wools for this series will almost clear up the clip, but it. needs to be remembered that the new season's wools are already beginning lo bo shipped from Queensland. Tho constant tendency is to get wool Home earlier, especially in merinos, and in accounting for the absorption of the year's'supplies it is necessary to remember that unusually heavy inroads were made on last season's production from July to December. Both the starting and the finishing points of tho season im.fine wools havo shifted considerably during past years. This needs to be noted by those who are disposed to take too sanguine a view of the present position of merino supplies. "In crossbreds the position is different, as there caunofc be new supplies in heavy bulk before the end of the year. • "U.S.A. support is still so weak as to be a negligablc element. With this exception, tho wholo world's active competition will bo practically focused in the London market, and this year's supplies seem lo ha fully mortgaged. Although (he U.S.A. demand is at a very low ebb just now (indeed, some parcels of old stocks have recently been forwarded from Boston to European centres), yet it nicy be reasonably expected that next season American requirements will be on a largo scale both for raw material and for the manufactured article. Consequently, all things being considered, one can understand the firmness of values, and the confident tone which generally exists in European markets. "So far as can be gauged, it must be admitted that the prospects for all grades of raw material are good [or some time ahead. There seems (o lie no doubt but that once more there will bo hare boards for.the new season's clip. It is, however, all lo the good that 10-nighl's opening showed ouly a. safe and moderate appreciation.".