LONDON WOOL SALES

Dominion, Volume 8, Issue 2370, 28 January 1915, Page 9

LONDON WOOL SALES

WEAK OPENING IN MERINOS CROSSBREDS STRONG (From Out Spocial Correspondent.) London, Docomber 11. Tho outstanding foature of tho week has been tho opening of tho final 6ories of gales for tho year, tho usual largo contingent of 'buyers filling Coleman Street Wool Exchange last Tuesday. It oan hardly bo said that the 6amo enthusiastic interest was manifest at tho oponinpr as at the commencement of tlie two previous series, and this is due to the fact of tho trade being fcurly well supplied with morinos, most interest being shown in tho course of crossbreds. • With tho complete change of front sinco tho close of the last series, together with tho uucrtaiiity regarding the futuro, only a somewhat indifferent attitude was shown to|'wards them, and at the best the opening can only bo described as barely good. The overseas cablegrams during the past three weeks have all holped to unsettle somewhat the minds of users, especially \tith consumption being so limited. Practically speaking, the home trade is almost entirely absorbed in consuming crossbreds, and merinos will not havo to fall a great deal more before it will pay tho Government to accept solid merino khaki mixhiTo serge in placo of the prosentstaudard cloths which are mado from medium crossbreds. It was in this spirit that tho trado camo togother last Tuesday, hoping once again to sco the standing of tho raw material clea.rly defined. There was a good company representing Yorkshire, West of England, and South of Scotland manufacturing centres, and no doubt Ireland too was indirectly represented. Results of the Interval. | Regular readers of Tub Dominion have been kopt weekly apprised of tho courso of tho principal consuming market, and what baa actually taken place during the interval is best illustrated by a reference to tho table given below. The vacation has been more or less of an ordinary character. Wo havo not had such extreme fluctuations as wore in evidence during the two previous intervals, and while crossbreds have held their own, merinos have gradually lost ground. This w.e say is primarily duo to the arrival of reasonable weights of new clip merino wools from Australia and South Africa, and we are certain that business generally is on tho slow side in merinos. What el so could be expected? We have to face the fact that consumption is very dargely running upon crossbreds, a good deal of both spinning and weaving machinery being engaged in producing khaki fabrics which hitherto havo been almost entirely run on merino account. At the same time there is a fairly good demand for fine wools, at least fairly big weights of fino yarns are being used in Leicester and district, besides going into limited consumption in the production of next spring fabrics. With such a big quantity of mule spun yarns being cut off by non-delivery from Belgium and France, Bradford is being called upon to meet the deficiency, and here we have a moderate oansnmption ensured, although it is greatly below the average. War requirements havo cut straight into the consumption of merinos, the Government compelling such a huge output of khaki sergo that growers will havo to bo satisfied with limited demand for merinos until conditions right themselves. , Below; wo givo a useful table showing the present price of leading descriptions of tops, and what wore current quotations at the beginning of tho last two series of sales:—

Oct. 6. Not. 3. Dec. 3. Colonial Tops— d. d. d. 70's avorage ... 285- 32 29 64's average ... 27}-27$ 32-32J 28 60's super 265-27 30t30£ ■ 27J 58's avorage ... 25-251 29 ■ 29 56's average ... 2d " 27£ 27J 50's average ... 20J 25-25J ' 25-2G 48's carded 19 23-235 234-24 4G's prepared ... 181 ' 22J-23 22-22-J 4fi's carded 17Jrl7J 22 22-22 i 10's prepared ... 16j-16J 19J-20 19J M's carded IG-16J 181-19 184-19 3G's prepared ... 16 181-19 18i Headers will see from the above table that merinos have already come down materially from the top point, and this is almost entirely dne to topmakers laving sold forward at less money than for spot delivery. We think it shohld bo put on record that so far back ns tho end of last September, one Bradford party was offering on ' Sydnev account good spinner's 64's tops for DecemberJanuary delivery at 2s. i|d. How could spot prices keep up in face of such offers? The writer himself could have bought for delivery this month an averago 64's top at 2s. Id., and this has all had a direct influence in bringing down quotations to where they stand to-day, 'and thero is not that clement of security about them which one would like to see. All tho talk is still of lower Tallies, and spinners seem to have set their ■ minds upon'a 2s. basis for 64's (say) for February, March, and April delivery. Merinos Weak. On. the opaning day there was oertainly a very good show of new clip merinos, particularly from Victoria and New South Wales, but no one can say that they met with a very hearty reception. For really shafty, well-grown, and goodconditionod wools, prices showed a good standard, but when we have said that we have said all tliat can really bo 6aid that is good. For these wools tho decline can lie called 5 to 7J per cent., and medium-conditioned wool 6 when at all short and i(jno declined fully 10 per cent., while the- inferior parcels fell anywhere from 15 to 20 per cent., and evon at that ratuced level sold with tho utmost difficulty. Scoured merinos also sold very irregularly, tho cleanest and best-condi-tioned wools selling at about 2d. per lb. decline, but tho moro wasty wools showed anywhere up to 3d, per lb. fail. Heavy withdrawals took place, but wo cannot see how any improvement can be exacted under present conditions. American operations no doubt were restricted, although tho embargo has been modified in their favour, yet on tho opening night no buying was done for the States.

For Hie few crossbreds catalogued, excellent competition prevailed, and for the parcels, prices fully on a parity with last sales were easily obtained, while for tho few lota of sliped crossbreds, often sjd. improvement was seen. # I'rem whatever standpoint the opening is viewed, wo cannot say that any satisfaction is forthcoming eo far as merinos aro concerned, and succeeding sales have no more than maintained opening prices. J ossibly Bradford topmakers, knowing ns tliey do that very cheap wools have l>ccn secured in Australia and tho Capo, are not going to spoil litis market, and to all appearance \iq aro well within a 2s basis for good 6i's tops. The biggest mi j era acknowledge that they have purchased freely in Australia, and arc therefore satisfied to lot prices take a natural course, and there is every likelihood of values declining still further with tho turn of the year. I ho following is an interesting record of how tho gear slipes sold yesterday:— alipe: 9 halfbred com Limbs, 24d.; 12 crossbrod Ist <lo„ do., 23d.; 8 do. do. 2nd do do., -'id.; 3 tlrree-q uartorbred do. do., IM.; H halfbred combing, 231 d.; 5 crosswn- Vi' ?' «"»• 221<'-5 47 do. do. comb., 22M.; 11 do 2nd M do., 21Jd.; 8 do. do. do! f,' j' 1, ! M crossbred 2nd com., 21d.; 131 thrc(wi",irl.crbrpd oonib., 19d.; 22 do. do IM,; 111 crossbred comb. 17Jd.; fl cross- * <K Pes-, ICd.; 19 do K, 17d.; 26 do., clo., IBM. ; SI do. do., ltd.; ,|6 do. WW.. IGd ; 21 do 3rd, lOjd.J 3 do. shanks, V.jd The Outlook, 1 Dealing with the outlook, Messrs IT Dawson-and Co. say:-"The situation ns regardsthe raw material has become considerably eased and simplified since the last series. Supplies of merinos aro now ploutilul and inoro than adequate for Home demands. The sharp decline at to-day s auctions and at tho recent colohas furnished proof of this. Consequently tho relaxation of-tho prohibition of exports us regards Australian merinos in favour of tho United btntos and of our Allies, under satisfactory guarantees will bo gonorally acclaimed. homo definite announcement as to tho nature of tho guarantees required is now being anxiously awaifed. Tho Australian wool-groweTs (than whom nrt> no morn loyal milijuntn) am entitled to tills, and to an ever wider consumption; for^.

seeing that merinos aro not boing largely usod for khaki cloths,' it is poor diplomacy to withhold their supply from friondly countries.

'i-ho fact is that machinory is so much occupied with tho crossbrod wools (for military purposes) tliut thoro is not ovon the amount of llorao demand for mormos. Tho machinery question under tho present abnormal conditions is likely to count as a potent factor. The cnlorccd reduction of tho huge producing capacity contained within tho present war area is going to place tho existent manufacturers in such a strong position t? . t , rarely possessed in recent years. -It will lie interesting to sec how the problem works out—of g an adequate machinery power of production and an ovor supply of fino wools. 'Those who believe in a very much lower level for merinos may, however, bo disappointed if they expect rt too soon, lhero are many hungry countries outside i ul ftr aroa . for fipo wools, notably Russin, Japan, and othor smaller 'Consumers, and in every centre the mills arofull of orders, but short of raw.-ma-tonal. It is also necessary to tako into account that throughout tho wholo industry the machines have been closer tho sheep s back during the past two years than for a long period previously, blocks in manufacturers' hands at present aro practically non-existent, and if tho embargo is raised in favour of all neutral countries their demands mny bo Kulliciently important to provide strong competition for a time. In crossbrcds the outlook is extremely good. Although famine prices are still bonis paid for spot lots in London, a much more moderate level of values now obtains in the .Melbourne, New Zealand, and South American markets, and relief in supplies will honceforward gradually be fdt. South American wools will arin fair quantity before the end of tho month, and New Zealand wools will arrive more slowly but steadily after tho middle of January, "The shipping facilities aro still distressingly inadequate, and what is even moro irritating is tho block at the English ports and oil the railways, by which shipments are taking an inordinately long time to roach (Yorkshire after arrival in port. It is inevitable that owing to theso difficulties there will be great trouble in fulfilling January deliveries throughout; the Homo industry."