LOSSES ON WOOL

Hawke's Bay Tribune, Volume XXII, Issue 155, 16 June 1932, Page 11

LOSSES ON WOOL

SALE IN LONDON MARKET.

VERY LITTLE OR NO RETURN. Auckland, June 15. The higher prices which many woolgrowers in the Auckland Province expected to receive by shipping their wool for sale in London have not materialised and many are now regretting that they withdrew their offerings from the Auckland sale to sell on the London market. Generally, lower prices have had to be accepted and in some cases very little or no return is anticipated. It is estimated that since the final Auckland sale over 10,000 bajes have been shipped to England from the Auckland Province. The majority comprised fleecy wools, but some bellies and pieces have been included in individual consignments. As far as bellies and pieces are concerned the return has not been sufficient to meet the charges involved. The prices at the last Auckland sale for average crossbred fleecy wools were ■ld to sd, but at the June sales in London the average price for these sorts was slightly lower. From the actual London sale price must be deducted shipping and selling costs, calculated, roughly, at IJd, after allowing for the benefit of exchange. The local selling cost is estimated at about id, so that to obtain the same return the London price must be Id in advance of the local rate.

A few actual cases indicate the unfavourable nature of the London market. A lot of 25 bales, passed in at Auckland at s}d, realised 4Jd in London; four bales, passed in at 4|d, brought that price in London; lots of 10 and 25 bales withdrawn at 4Jd and sjd respectively were subsequently sold for 4|d and 5Jd respectively. Although no actual “debit notes” are reported, it is anticipated that some classes cannot show a return at present rates. Owing to the high storage charges there is little chance of wool being held in London in anticipation of rising prices. The plight of the average woolgrower hi New Zealand cannot be overemphasised It is stated that he can only just pay running expenses and nothing can be allowed for rates and interest. To some extent he is being helped by brokers, who are not charging for the storage of wool, but he must sell to obtain ready cash. It is significant that many farmers, hitherto purely graziers, are now milking small herds.—“N.Z. Herald.”