OUTLOOK FOR WOOL

Evening Post, Volume LXXXVIII, Issue 91, 14 October 1914, Page 2

OUTLOOK FOR WOOL

AS VIEWED BY AUCKLAND MERCHANTS KEEN COMPETITION. (»T TELEGUAPB— SPECIAL TO THE POST.) AUCKLAND, This Day. Unusual interest has been excited among, growers of wool by the cabled reports of the London wool sales. The series of sales in New Zealand will not begin for a month, and in the meantime merchants are devoting much attention, to a study of the prospects in order to satisfy the numerous enquiries which are daily made to them. Even in normal times the wool market is subject to variation by the effect of many factors. Any prediction of its condition is recog* nised to be a matter of great difficulty. Many new factors have been introduced by the war, ahct brokers in New Zealand are even more cautious bhatl usual in attempting ' to estimate the value of wool for export. Although very little information has been received to assist them in reaching conclusive judgment*, the merchants are strongly inclined to the view that prices commanded by this season's wool will reflect the high standard of value* maintained during the series of ealee in London that has just closed. The daily reports have all emphasised the keen competition among buyers for the English manufacturers, the last sale closing with the highest prices of the series. One message stated that the present demand v»as for army purposes, and the advance of 15 to 20 per cent, in the values of crossbred wools indicates the tremendous demand by manufacturers of khaki clothing, The reports received in New Zealand show that the supply wa« totally inadequate to meet the excessive demands, although large quantities of wool had been sold prior to the sales to satisfy th« Immediate requirements of the manufacturers. Fully 90 per cent, of the wool grown in New Zealand is crossbred suitable for khaki cloth. The high prices ruling in London are considered, to be the diNjct ireault of the excessive demand upon a> small supply. It is presumed that the army contractors have received large orders for winter clothing for the allied forces l and their desperate need for raw material has resulted in the extreme competition emphasised in the cabled •reports. , Very little of the new wool from Aue» tralasia can reach London before February, and the estimate of values at that time which will be made by the visiting buyers is the subject of much speculation among merchants and farmers. No information has yet been received regarding the number of buyers that will attend the gales in Australia and New Zealand, but it is believed the competition will be keen. Representatives are expected from America, bat the tone of the, market will be fixed by Bradford agents". Though the,representatives of German interests are not expected, it is presumed that tho French requirements will be me* by increased purchases by English firms. It is impossible to trace all the wool sold in New Zealand to its final destination, and for that reason only approximate estimates can be given of the volume of the trade in wool with Germany and Australia. According to returns furnished by the buyers, 45 pci 1 cent, of the wool purchased at the 191344 sales in New Zealand was for the United Kingdom and 38 per cent, for the Continent, the balance being for the United States of America, Canada, and local manufacturers. These figures do not include wool shipped to London and sold there, and separate r&taww for France and Geimany are not available. Merchants in Auckland believe thaMluloss ol German custom by New Zealand will not seriously affect the market. A suggestion was, however, made that the serious disturbance of their commercial relations with the Continental firms Buf fcred by British manufactures may appreciably affect their operations during this season. On the other hand there are several factors that appear to be sufficient to counterbalance any depreciatory influences. The presumptive orders for khaki material anticipated by the mills of the Dominion will, it is be* lieved, assist in maintaining values ftt a high stahdard. A better indication of the prices that will rale in New Zealand will be giveh by the Australian sales, which will open in Sydney next Tuesday. The sales in the Dominion will open in Christchurch on 12th November. Meanwhile arrangements are being made fo* the shipment of early clips direct to London. As a result of the mild winter shearing began early in the Auckland Province and is now in full swing. , Though the total production of the season will probably be only normal the catalogues for the opening sale are expected to be heavy in consequence of the favourable weather conditions and the attractive prospect of high prices. There is a serious shortage of woolsacks, and some of the merchants are finding great difficulty in meeting the orders from their customers. Material relief would have been provided by the delivery of consignment* shipped in the steamer Janus, but the fire in that steamer has stopped the supplementary supply. Arrangements have been made to secure an early delivery of the next ordinary shipment, and it is hoped that sufficient stocks will be available to meet the needs of the southern districts, where the shearing is later.