The Wool Market.

Kawhia Settler and Raglan Advertiser, Volume XXIII, Issue 1237, 10 October 1924, Page 4

The Wool Market.

Past Year Reviewed. Prospects for Coming Season. (Compiled and Issued by the N.Z. Loan and Mercantile Agency Co., Ltd.) Tbe 1923 -24 selling season will pass into history as being one of the most satisfactory to tbe wool-growers of New Zealand. At tbe close of last season many growers considered that the peak of values bad been reached, but, contrary to tbe general trend of opinion, tbe market for fbe whole season has shown prices to have been pence per lb above tbe 1922-23 season’s parity. A feature of tbe past season has been the very keen competition experienced for every quality and class of woo). Values for every sort were considerably above even commandeer prices. The increase in competition for crossbreds has been very noticeably and this class met with a very active demand, with a considerable increase in value. The disparity in costs between coarse and fine wools was not nearly so marked as was the case during the previous selling season. Tbe regular season opened i_ Christchurch on Nov. 5, 1923, when catalogues approximating 5000 bales were submitted by the associated selling brokers. Subsequent sales were held at the various centres, and tbe season terminated on March 25, 1924. During the season 501,216 bales were sold, which compares favourably with 476,966 bales for 1922-23. It is very evident that wool-growers are viewing kcal s 11ing with favour, in preference to shipping to the London market, and tbe experience of brokers and growers during recent years has fully demonstrated tbe wisdom of this course.

Wool values realised at tbe opening sales exceeded even the most sanguine expectations, and each subsequent sale showed a steady appreciation in prices until at tbe end of the season they were at tbe highest point with tbe demand still unsatisfied. New records were established this season, both Merino and halfbred woofs selling up to 33d per lb. Overseas mills were keen competitors, and it is noticeable each year that a greater numbar of overseas manufacturers ara being represented at New Zealand sales. Tbe mainstay of the ma; kit during the present season has bee n tbe phenomenal demand on GontincptaJ which was in evidence throughout the season. Bradford during the first half of the season did not operate ao freely, but during tbe latter half, they realised that values were very firm, and ginsequently if they wished to buy they would have to purchase at prevailing values. The demand on behalf of local firms end Australian houses was also remarkably keen, but ttjers was a distinct falling off on Amerioap and Japanese account. Tais in the latter case was no doubt due to the earthquakes destroying a numbsr of tbe leading mills, and also owing to tbe difficulty in arranging credits. It was not expec ed that America would be a large purchaser during tbe season just closed. Owing to exchange rates ruling so greatly in her favour, America bought considerably more than her requirements, and faced the opening of

the present season with considerable stocks of wool on band ; consequently her purchase did not amount to tbe same quantity as in previous seasons. At tbe end of March 1924, the last of the “BAWRA” stocks were disposed of, and tbe huge mountain of wool that, during tbe past few years has caused considerable eonesrn to tbe trade, has finally disappeared. The dip was hardly so well grown as in previous seasons mainly owing to the very wet winter experienced. Wools opened up light in condition and of fine quality, but were thinly grown and of tender staple. The classing of wool by individual growers has shown a marked improvement,'and whilst there is still room for improvement in many instances in tbe get up of dips, it is satisfactory to know that growers are realising that, to secure tbe best return, they must pay some attention to clas sing. As is usually the case, many lots of superior, well-grown wools, in differently classed, and consequently did not meet with the competition from buyers they would otherwise have done Lu many oases, in order to secure tbe real value of these wools, it was neces sary to reclass them in store. It is at all times advisable for a grower, if he is unable to class bis wool, to ask his broker to do it for him. Brokers employ expert men to do this work, and as they handle a considerable quantity J .vjol each season, they are more ex pert than the grower who only classes his dip once a year. The benefits derived from binning and interlotting small dips were evident throughout the season, Wools treated in this manner met with extreme oom petition, and it has been amply demonstrated that buyers appreciate tbe action of brokers in submitting for sale large lots of “grouped” wools. During the main sales of the season it is practically impossible fur every buyer to value “star” lots, and tbe grouping of these small lots results in every bale of wool being carefully valued. Prospects for 1924-25 Tbe position of wool values to-day is on an extremely sound basis, and growers may confidently look forward to at least a maintenance of, if not an improvement on tbe parity of prices ruling last season At the present moment, the worjd’s stocki of raw ma erials are very much lees than at any time since tbe dose of 1914. and although opinions may differ as to ths exact quantity of last season’s dip, wh ch will gi into consumption before nett selling season, it a readily agreid by all persons who have studied the position, that there will not be enough wool available next season to satiety a demand equal to that of the past two years. The year 1921 was omsidered by manu fadumrs to ba a period of vary low consumption, and it appears evident that tfie available supplies for the eneumg season v?ill be appreciably short of the quantity o msumed during that year. A recent ealitpate of tbe world’s consumption is on an average of 2,850,000,009 lbs, and the avadable supply for last season was 2,5 +1,000,000 lbs. It is not expected that during fcbq coming season any material iuorenje would tp shown in tbe world's production ot woo), and, as a matter of fact, it will be some considerable time—probably at least five years—before the number of sheep in the world will approximate those of pre-war figures. Krom this it will be readily seen that the outlook for wool values is distinctly good, and it is doubtful if the prospect for

growers has over been more favour, able.

With the disposal of the last of “Bawra” stocks at tbe end ot March this year, it will be realised that the available surplus of stocks accumulated during the AVer has gone into consumption, and judged by the average consumption of the world during the last few years, it is evident that the trade are deeply concerned as to whether a sufficient quantity of raw material will be available to meet the world’s needs,