WOOL DOWN

Grey River Argus, 29 November 1937, Page 5

WOOL DOWN

OPENING N.Z. SALE Average of lOd. per lb. growers refuse prices . OFFERED. JAPANESE NOT BUYING. [Per Press Association.] AUCKLAND, November 27. Auckland’s first wool sale opened this morning to a full bench of buyers, with prices offered anywhere from 50 to 60 per cent, below last November rates. The prices were not accepted, and the bulk of the opening catalogue was passed. .For hogget wool, the average quality lOd was offered and for super half bred hogget 16d was bid. Last year’s average price for the first catalogue was just over 14d per pound.

Neither’ the Japanese nor the Americans appeared to be operating. The excellent condition of the Auckland clip accounted for special interest shown by Continental buyers.

As usual with Auckland’s first sale there was a large percentage of hogget wool, and this was very fine and practically all carding wool. The sale proceeded as it promised in the first catalogue, and at one o’clock the market trend had shown no alteration from that ruling at the commencement. Bidding was still keen at the lower levels, and brokers were passing about 75 per cent, of the offerings. At this time the prices offered were as follows:—

Super half-bred and Corriedalc up to 16d per lb.

. Hoggets—so's to 52’s, lOd to 103 d; 48’s to 50's, 91d to lOid; 4Ss to 46’s, 9d to lOd. Lambs 8d to 121 d. Crutchings 61d to 9d. Bellies and pieces 6id to 81d. Locks and pieces 4d to sld.

In the first catalogue fully 75 per cent, was passed unsold, buyers’ offers being well below growers’ ideas of value. This was in marked contrast to the scene at the corresponding sale a year ago. On the last occasion buyers from all wool-consuming countries in the world were on their toes, eager to get in I heir bids, and making practically a complete clearance of the entire catalogue at prices that showed a good 50 to 60 per cent rise. Quite early it became apparent that the sale was proceeding better than many had expected. The Continent came in right from the jump, and although there was hesitation in regard to occasional lots, most elicited keen bidding, but at prices that were below reserves. Of the first catalogue, about 25 per cent, was sold, and the balance becomes the subject of subsequent negotiation by private treaty. If this does not lead to business, the wool will remain in store until the next sale in January. Values in the opening catalogue appeared to show a 50 per cent, drop on last November, but even at the reduction, they are about the rates ruling during the depression years. The buying bench, numbering over seventy, was the biggest yet present at an Auckland fixture, and the crowd of onlookers, chiefly farmers and their wives, filled the gallery to overflowing. Before the sale commenced, there appeared to be an instinctive reluctance to make a start. Everyone had been prepared for a fall in prices, but there seemed to be a disinclination to face the music. It was a good twelve minutes after the stroke of nine that the New Zealand Loan and Mercantile Agency Company's veteran auctioneer, Mr J. D. Duke, offered the first lot. He subsequently confided the information that in a lifetime of wool selling he had never faced such an ordeal.

During the morning, private cablegrams from London indicated that Bradford values had shown a further decline. Under the circumstances, it is considered here that the offers at to-day’s sale were as high as could have been expected. As each catalogue was disposed of, negotiations were immediately opened up by brokers with farmers. In seme cases satisfactory deals were recorded and there is bound to be a fair amount of private dealing from now until the buyers leave the city to-monow night. However, it may be assumed that the bulk of the wool unsold to-day will be retained and again offered at Aukland’s second sale. Most of the local farmers are in a much better posfi'on to hold thenwool than they were in the slump period.

AUCKLAND. November 28. A substantial decline in prices occurred at the first New Zealand wool sale of the 1937-38 season, which was held in Auckland on Saturday. Values dropped about 40 per cent., as compared with those ruling at the first sale last year. The reserves were not reached in the majority of cases, and only from 30 to 35 per cent, of the total offering of 25,000 bales was sold at auction. The estimated return is about £l4 per bale.

Though the prices fell so steeply compared with the rates of a year before, most of the growers were pleasantly surprised that the drop was not even greater. The activity of Continental buyers, representing principally French and Belgian interests, and the demand of the local mills for super halfbred lines saved the day. There was a marked absence of the Japanese competition which dominated the first sale last year, and was then largely responsible for the phenomenal prices. The top price offered yesterday was 17d per lb. for several lots of fine half-bred wool, which were passed at this figure. Passings were exceptionally frequent. The majority of the bids fell substantially short of the reserves, though a proportion of the growers sold later, by private treaty. It is estimated that the average on the lower range of prices is lOd per lb. compared with 14.225 d per lb., and £2O 10s 6d per bale at the opening

sale last year, and 8.27 d per lb. and £l2 2s per bale at the beginning of the 1935-36 season. RANGE OF PRICES. AUCKLAND, November 28. The official report on the wool sale states:—-There was an offering of 25,000 bales. Approximately 30 to 35 per cent, was sold at auction, competition being fair, within restricted limits. The Continent was the principal buyer, with the local mills com-

peting for super halfbred lines. The hogget wools were shorter and finer than usual, being thus particularly suitable for Continental requirements, but they did not command the usual premium. The sale proved better than the brokers had at first anticipated, due to the operations of the Continental buyers. Compared with last season's opening sale, prices generally show a reduction of about 40 per cent, although some lines show a still greater drop. The range of prices was as follows, the November 1936 sale prices being shown for comparison, and the 1J37 prices being shown first.— Southdown A Us to 12s per lb.-— 19.1 d to 20ld; Southdown B, 9id to lOJd—l6l-d to 19d. Half bred, 56/58: Extra super 15d to —nil; super to 15d —23id to 26d, average 13d to 14td 19d to 23d. Halfbred, 50/56: Super 13d to 14d —l7d to 181 d; average llid to 121 d —lsd to 163 d; inferior lOd to lid— Extra fine crossbred, 48/50: Super lid "to 12d—16id to 18d; average lOid to lid—lsd to IGld; inferior 9d to lOd—nil. „ „ , Fine crossbred, 46/48: Super 10, d to 103d—16d to 17d; average 95d to 10d—14Id to 153 d; inferior 8a to 9d

Medium crossbred, 44/46: Super lOd to 10R1—16d to 17d; average 9d to 92d—13id to 151 d; inferior 8d to 9d _ Coarse crossbred, 40/44: Super lOd to lOld—lsd to 16d; average 91d to 93d—131d to 143 d;. inferior Bia to 9d —nil. Strong crossbred, 36/40: Super lOd to 10-id—l4d to 15d; average 91 dto 93d—123d to 133 d; inferior 81d to 9d —nil. Hoggets: 52/56, lid to Hid—ml; 50/56, lOd to lid—l7ld to 20 Id; 48/50, 91d to 10-ld—lsid to 17d; 46/48, Old to lOld—l4d to 16d. Lambs’ down: Crossbred, nil 12d to 131-d: fine, nil—l4d to 151 d; medium. nil—l23d to 133 d; seedy and inferior. nil—6d to lOd. Bellies and pieces: Crossbred, good to super 71d to 81d —lid to 12id; low to medium, 6d to 71d—9d to KLd, halfbred bellies and pieces 8d to 91d —lsd to 17d. Cruthchings: Medium to good 7d to 9d—lid to 121 d: inferior to seedy 5d to 6d—9ld to lid. Locks: Crossbred, 4Ld to 53d —6d to 81d.

London Prices

KEEN, STEADY COMPETITION. LONDON, November 26. The wool sales concluded with an offering of 9,340 bales, of which 4,494 were 'from New Zealand, and 7,631 were sold. There was a faiily good selection with improved demand for best kinds. Throughout the series 73,400 bales were offered, and 57,000 sold. The home trade bought 29,500 and the Continent 27,500.

The tendency throughout was steady at a decline, but competition was keen. Compared with the closing of the previous series, prices were 15 to 25 per cent, lower. For New Zealand stipe, half-bred lambs, Canterbury realised top price with 14id. The average price was 121 d.

About 31,000 bales of Australian, and 28,000 bales of New Zealand wool were held over for the next series.

Merinos sold throughout at from 15 to 25 per cent, lower, Bradford topmaking styles 25 per cent, lower, cross and fine cross-breds opened at 20 per cent, lower, later easing a further 25 to 30 per cent. Medium grades similarly fell. Slipes were in large supply, and gave way by from 30 to 35 per cent.