Wool Prices and Prospects

Hawke's Bay Tribune, Volume XIX, Issue 31, 23 January 1929, Page 11

Wool Prices and Prospects

A Comparison With 1928 Figures

Stabilisation of Values Needed

(By “Sundowner.” )

Without being in any way dissatisfied with the present prices being obtained for wool, especially in view of the extra weight which the sheep have clipped this season in consequence of the excellent weather and feed

conditions experienced, it is interesting to compare the prices now being obtained with those ruling at the same sale in 1928.

A Comparison with 1928 Prices Stabilisation of Values Needed. FINE WOOLS DOWN There is no question of doubt that prices, particularly on the fine grades of wool, are down from 2d. to 2|d. per pound, while low crossbred, low to medium lambs wool and crutchings. are the only classes which show any appreciation in price. Some wools, mostly of inferior and coarse quality, have held their own in the comparison with last season's, -prices, but taking the wools in which we in Hawke’s Bay are most interested—the various grades of crossbred — prices are easier by a penny to two pence per pound. BETTER WOOL THAN IN 1928 This is the more remarkable in that our wool this year is of better staple, sounder and brighter, than that offered at the corresponding sale of 1928. and should logically he worth from Id. to 2d. more, instead of less. The condition is approximately the same, or if anything lighter, owing to the wet weather this season, than in 1928, so it is apparent that wool, except in the coarser grades is really down more than is evident from a comparison nf prices on paper. For reasons outlined in articles published in April last, I anticipated that such a decline in wool values would take place from the peak prices of last season.

PRICES COMPARED The following table—a copy of the official brokers' reports for the January wool sales in 1928 and 1929 —will enable the former to follow the trend of prices for himself.

THE SAME CLIP TN 1928 AND 1929. Taking a well-known Hawke’s Bay stations’ clip, which would not vary much in its treatment or classing and which was sold in the January sale in both years we find :— 1928 1929

Even more so than the previous table, this illustrates the easing in wool values this year in an average fine Romney-cross flock when compared with 1928. PRICES STILL HIGHLY PROFITABLE Actually ths prices being obtained this season are highly profitable to the grower, and it is unnecessary to waste any sympathy on our producers on the score of prices for wool. What we should aim for, however; is to have wool prices stabilised at somewhere about the present figures. If this could be done, it is believed that both growers and manufacturers would be satisfied, and each would be in a much better position, knowing fairly closely how their expenses and returns would balance, and being able to adjust their business accordingly. THE TREND OF PRICES It is always mor e difficult to get a clear view of the probabilities of the market when the selling season is in progress and rumours regarding influencing factors are floating ahout unusually fredly. but, ' discounting most of these, it would appear that the heavier-conditioned wool likely to be offered at future sales this season will experience a little further drop on that account Possibly we may see a little keener competition at future sales from Bradford and America, who cannot yet have secured al] they need in the way of fine crossbreds, and this may tend to counteract tho lowering of values because of condition.

Without going very deeply into the question I should be inclined to expect lower grades of crossbred, including bellies and second pieces, to ease in price, while a hardening tendency should be met with for fine crossbred and lambs’ wool. A large amount of Hawke’s Bay wool has still to go under the hammer, necessitating an extra sale during March, and it is therefore sincerely to be hoped that present prices are maintained.

January 1928 January 1929 Rise Drop Merino— Average Up to 23|d. 19|d. to 2OJd. Bid. Southdown— Average 18Jd. to 24|d. Up to 22Jd. 2H. Medium Halfbred, 50.56’s— Average 20d. to 22|d. 19d. to 2OJd. 2Jd. Fine Crossbred, 46-48’s— Super 20d. to 21id. 17id. to 19d. 2}d. Average 16fd. to 19d. 16d. to 17d. 2d. Inferior 14Jd. to 16d. Up to 15d. Id. to Hd. Medium Crossbred, 44-46's— Super 18d. to 19Jd. 17d. to 18jd. Jd. to Id. Average 16d. to 17jd. 15d. to 16-Jd. Id. Inferior 13d, to 15d. 13d, to 15d. par Coarse Crossbred, 40-44’s— Super 16d. to 18Jd. 16|d to 18d. Average 14d. to 15id. 15d.'to 16d. id. to Id. Inferior 13d. to 13Jd. 12d. to 14d. par Low Crossbred, 36-40’s— Super 15d. to 16Jd. nil Average 13d. to 14|d. 15d. to 16d. lid. to 2d. Inferior 12d. to 13d. Up to 13d, par Hoggets— 48-50’s 20d. to 21 id. 18d. to 21d. Id. to 2d. Fine 18d. to 20Jd, 16d. to 19d. par Medium 17d to 20d. laid, to 18|d. IJd. Coarse 14id. to 17}d. 14d to 16id. Jd. to Id. Low — — Lambs— Good to super 19d. to 23Jd. 19Jd. to 23Jd. par Low to med. 15d. to 18d. 17d. to 1913. lid. to 2d. Pieces— Low to med. 9Jd. to 15d. 94d. to 12id lid. Seedy and infr. 8Jd. to 9|d. 8jd. to 9|d. par Necks—. Average 16jd. to 21Jd. 13J to 19id. 2|d. Bellies— Low to med. lOd. to lljd. 9Jd. to lOd, Id. to l?d. Seedy and infr. 9d. to 10d. 8Jd. to lOJd. par Crutch ings— Med. to good 10d. to 12d. to 13d Id. Seedy and infr. 5d. to 7d. 5jd. to 9Jd. 2Jd. Locks— Crossbred 6}d. to 9d. 6Jd. to 9d. par

A wool .... 21d. ... 181d. B wool .... 2OJd. ... . 17?d. 1st. Pieces 18}d. ... 16Jd. 2nd. Pieces lfld. ... 12fd. Bellies .... 15d. ... 131d. Southdown 22jd. ... 20d. 1st. Lambs 24Jd. ... 20d. 2nd. Lambs 18Jd. .... 16}d.