FULLY TWOPENCE

Evening Post, Volume CXI, Issue 67, 20 March 1931, Page 8

FULLY TWOPENCE

IN STKONG DEMAND

'A PHENOMENAL ADVANCE'

Twopence per pound average over the whole catalogue is a conservative estimate of the advance in Wellington wool prices to-day. Comparison is made with rates current at the last sales held here on 13th February, when values were very low following the fall in the overseas wool market and lack of confidence in every section of tho industry, from pastoralist to cloth merchant. The February Wellington sale, however, was an improvement on that held iv January by -Id to id, bringing the price back to December level. The sale to-day opened sharp at 9 a.m. with a catalogue approaching 3000 bales, and of a fully comprehensive character. There was an old-time eager atmosphere in the hall, and it very soon became apparent to everyone that buyers really wanted, the wool, and were bidding"right up to their limits for if not only that, but the buying was well spread', with tho important exception of the Yorkshire section. Continental competition was exceedingly keen, and Japan ivas prominent in the sale for super wools, with France determined to get lambs' wool. Buying for United States requirements was also a feature of the sales. It is estimated that the advance all over represents fully £3 per bale more than the prices obtained in February, and that the recent welcome advance in the average prices at the Invercargill sale was exceeded by a full halfpenny per pound. Inasmrch as the aggregate catalogue offered consisted of 20,160 bales —"and practically no wool was passed in—the Wellington wool cheque tor March will be roughly £60,500 more than seemed likely early in the month. MARKET MOVES UP. Beference to London cablegrams attached to these remarks will show that the Bradford tops market has improved on tho week and that London sales are continuing their active competition, with advances on the opening rates. The market has been moving up in Australia as well as in London and New Zealand, and the sales in "Wellington to-day should ensure improved returns at Wanganui and xVuckland next week, to the manifest advantageof the Dominion, as well as directly to the wool grower; an advantage not only of a monetary but, what is almost as important in the present economic conditions, of a psychological character as well. There is just one little point to bo kept in view by those considering the present improvement solely from the point of view of pounds, shillings, and pence, and it is referred to by the chairman of the Wellington Woolbrokers' Association in his comments on tho sale so far as it had gone up to the luncheon adjournment. He described the market to-day as having made "a phenomenal advance." Other opinion was that superfine wools were 3d per pound better than in February, and lambs were up by 2h& to 3d per pound; one fine line of lambs' wool which was worth about 9d to 9Jd in December, sold for 12id; and halfbreds 'were quite 3d to 4d better on December rates. For a special lot of halfbred, and not much of it, 14Jd was realised. ' Growers were but to sell. That was patent to everyone in the room, with ,the final result that from 98 to 99 per "cent of tho catalogues was sold under the hammer. It would be safe to Bay that practically all the wool offered was or will be disposed of. The chairman of the Brokers' Association remarked that "certain wools which Japan ,was able to buy in the South were still required for that country, but buyers' limits for it had been increased.

"It was most noticeable, too, that Bradford business was of comparatively small dimensions, but Continental limits were obviously considerably ahead of those fixed for the February sales. There was a sensational rise in the prices for bellies and pieces, and this was attributable to the animated competition that came from .the French section of the trade to-day. AHEAD OP LONDON. "Analysing prices (so far as they have gone) it-would appear that Wellington values to-day arc considerably ahead of London parity. _ '

"The offering was composed mainly of crossbreds, these wools being generally good lo super topmaking sorts, and (here were a number of the lines that could be classed as super. Offerings of halfbrods and merinos were small and hardly sufficient, in point of fact, to give-a reliable range of prices for them. For any super lines of halfbreds Japan appeared to hold limits well ahead of any other competitors at the sale. "In conclusion, I would say that it is" only to bo hoped that the phenomenal advance in prices to-day will not prove to be a mere flash in the pan. Remembering that always) Bradford is a mainstay and the largest buyer of our crossbreds, which by far constitute the bulk of the wool produced in New Zealand, it may be as well to note that when Continental and Japanese requirements are filled, Bradford may come in and current prices may slightly ease." The chairman estimated (and that roughly) that the average price per bale of wool sold to-day would be £10, in contrast with £7 per bale for the February sale average. Wanganui sells on Monday with an offering of between 10,000 and 20,000 bales; Auckland should have 20,000 bales to offer next Friday.