YORKSHIRE WOOL LETTER.

Dominion, Volume 6, Issue 1585, 31 October 1912, Page 3

YORKSHIRE WOOL LETTER.

IS WOOL HIGH ENOUGH? (From Our Special Correspondent.) Bradford, September 20, l!)f2. With Hie opening or Die colonial sonson by n three days' sale in Brisbane this week, together with a large and important sale at .Adelaide, attention is directed to the standing of the raw material. The cable messages which have come to hand indicate a very satisfactory demand for the raw material, and while no further important upward movement is to l>o chronicled, wool is selling very remarluibly, showing conclusively its sound standing:. When Coleman Street Wool Exchange opens its door next Tuesday, it will be all "hammer and tongs," as they say in Yorkshire, the combined buying spirit of all woolconsuming lands being foeussed on the raw material exposed for sale. It will not be badly spent time if to-day I show where values stood at the opening of the London September series during the

I past feu* season?, nnd this is prompted by the repeated statements in consuming centres that the price of the raw material is too high at the befrinninp of a new season in Australia. One often thinks that talk is cheap, and many people let their tongues wag a Jittlo too freely ■without paying due regard to actual facts. It will be seen from the undermentioned particulars that the price of wool and £ tops does not greatly differ from what 5 has- been ruling 1 at this period for the 3 p»st<few years. It simply is now a ques--5 tion as to whether things can be so % engineered as to effect a slight decline 5 at the various selling centres in the C Commonwealth. Particularly on Con- % tinontal tenne markets the practico of so I manipulating prices as to affect to some I extent all buying centres is common, K but this year : l lie task is going to lie £ more difficult than usual owing to the f shortage in . the forthcoming Australian f clip.. Many even in Bradford have not ? altogether given up hope of being able f> to buy on a slightly lower basis than J hitherto -possible, - but that remains to B be seen., Last season the active German 6 buying in Australia to a large extent L annulled the onslaught which was mads f) upon "futures" at Roubaix and Antwem j, and as far as ono can see there is every [ likelihood of values maintaining a level £ not far , off the present one. However, L time proves a great deal, and if to-day's [ conditions in the manufacturing world P of Great Britain, the Continent and r America arc anything on which to p form an opinion, there is certain to be .a * very sound and satisfactory demand for P the raw material for sonio months to ? come. . * WHERE INCREASED SUPPLIES ARE LIKEIA' TO COJIE FROM. No.one is bold enough Jo say that wool is cheap, and while we have all known prices to be much higher than they are . to-day, yet tho fact is generally accepted that wool is well above a normal price. At the same time it is not too dear. We often think that the majority will have to re-organise their views in regard to the iminediato future of raw material. Old memories no doubt linger long, but nevertheless it seems to many in the trade that wool is a very long way from ever getting back to the level of lf>9s, 1900, and even the early months of 1908. Australia appears to have turned out her maximum clip for some years'to come, and the only possibility of an increase is likely to come from New Zealand (which cannot be large), South Africa, and South America.' According to the forthcoming Australian clip will be 250,000 bales less than,-last year, and if such a shrinkage is the result of six months' drought in the Commonwealth, what is to bo expected •when' a : dry season lasts for a longer period, as was the case some few years back. The only country where we really may expect a further material increase 'of merino wool is South Africa, and no doubt the continuous importation of Australian stud stock is the best thing that could be done for the South African wool industry. As regards an increase from Australia, it looks as if that country has turned out its maximum weight of raw material. VALUES CONTRASTED. ' With the advent of another new season and the opening of the September scries of London sales, it will be well spent time to seo where values stand compared with recent dates. The following are interesting particulars which are well wortii digesting by the whole trade, and the figures given for to-day are the closing prices of the July series of London sales compiled from the circular of Messrs. Buxton, Ronald, and Co.:— *5 sir us o " * •" p§#'sl p Islf i"f § ■ sis3g. Igngg g' ■ Z* r? SJ hi ~ 5 : : <+3: jifli l^ihp !i i Tt: :: I P-j : : MtoScjM iiSinJlf 1 T.l,i T. - CMHC~ o CJ J"?' MtdtdtdtO — MM a, ;co 10 yj liT II I' 1111 II . o<s -SS^SSSS Wo now come to deal with crossbreds.' Present prices cannot be called disappointing to growers, and if they never receive less for their wool they will have no cause for complaint. Values are such that notwithstanding the increased cost of. production, crossbred wool can be grown at a profit, for the present price of mutton sheep in the Dominion is also bringing good returns to producers. It is certainly very satisfactory to see crossbred wools fetching these prices, and the level is such that importers are already .feeling that the danger point is fast being reached, in view of another importing, season. Below we set forth some valuable particulars showing where values stand compared with the corresponding date in previous years, ond the tablo is well worth consideration. '0 9 Q S 5 0 E. 'y. i I g 1 I J H; 2 8 3 I•e § § &■ 2 S' s is « ■8 V • !• ' . a " i, to to e M I 1 r i Sit M 1-1 M <$ rt <so M tf- • ) I r I i'lff 0 - 3 c M aj3 - s = ■ 1 i i I & O O li £ ft? 'i i ' g x -1 tp r It will be seen from the above that 10-day's values are practically 011 a par with' the corresponding date a year ago, but ara distinctly below what they were ia September, 1909, that being a very ac*

tivo timo when American buyers were on tlie warpath in a very similar iikiiukt to what, they are to-day. Towards the end of tho year they imperially reduced their takings, and this is n contingency which the trade ought now to watch. li can ho taken for granted ihat after the next .['residential election tariff revision will occupy a very commanding position in tho American political world, and it is a foregone conclusion tlvit a Deni XTitic I'resi- • dent will be elected. ! MKIMXOS INFLUENCED BY . COLONIAL SALES. Tho market this week presented prncti- , eally no new featuro until Thursdiiv, when cable news of the opening of Iho sale in Adelaide, and reports of the Brisbane sal Co, were to hand. It is clearly evident that wool in Australia is .selling remarkably well, and it must be said thai prices are fully on a parity with either London or Bradford, it being generally estimated that tH'§. tops will cost fully -i 3 d. out of both centres. This is fully as much as can be niade in Bradford; in fact, 27.1(1. cannot be freely niado there. Ao doubt there has been a good deal of covering, but at the same time it is generally felt that the majority aro buying tor actual use. There is on all hands a good deal of inquiry for the raw material, and it is impossible to pick up any at fractionally easier prices. Spinners continue to bo busy, and they can still sell varus and nieces at recent rates. Topmakers in Worstedopolis are anything but convinced that tho wisest policy is to force values, and while several firms are not the least particular about selling, they are sitting tight and are not at all keen to talk of the future. It is quite true thitt a little business has been done for next January, Gl's having been sold in a fewinstances .011 a basis of 2Gd. Unless colonial markets shade a little, there will lie jio wool liought to bring in tops on that basis, but the sellers say that we have been similar strong openings before, and when buyers have to a largo extent satisfied their most, urgent requirements, they have then settled down to do business on a more reasonable basis. Everything presents a very firm appearance indeed. Crossbreds are very sound and intact, and general expectations seem to favour a full Ti to 7} per cent, advance next week 111 London. ,