LONDON WOOL SALES.

Marlborough Express, Volume XLII, Issue 101, 30 April 1908, Page 6

LONDON WOOL SALES.

A POOR START

ANOTHER SERIOUS FALL IN ALL

QUALITIES

[feom otra correspondent.]

LONDON, March 20, 1908

All eyes are now upon Coleman Street, and I have never known a time when there was^so much interest manifested over the course of wool prices. I have lately thought that men were as anxious and as much concerned when prices were low as when values were high, for everybody seems desiiious of knowing the, fate of the raw material. The interval has ( been most disastrous that we have seen since 1900, every quality falling considerably. It is impossible for markets to stand still. Things have^, about reached that point 4uring the past two months as to alarm everybody, for every transaction has shown a lower price accepted. It is really disgusting to see men spend their time and money in buying an article in the hope of making a living profit, and then to find that everything is against them. The money recently lost in the wool trade is tremendous, and it will never be whown what parties have suffered the most. I hardly think that values would have dropped like they have if the trade had not been confronted with such heavy supplies, all of which have to be lifted and financed. It is at a time like this when the question should be seriously~considered of giving Jonger time to the marketing of the Australian clip in particular. It's all right enough/ rushing a million bales on to the market in three or four months' time when trade is booming, but when we encounter a time like the present, it is bad any end up.

HOW VALUES HAVE FALLEN

; The course of markets in consuming centres like Bradford always plays an important part in determining what Coleman Street is going to.do, and I must say that the outlook is nothing l^»e what we have been accustomed toy during recent years. Last December with the financial American crisis, things, .were very unsatisfactory; Jan- j vary was worse, and expectations are still, less favourable over the March series. The following table is well worth considering, showing*, as i!t does what has been the fall in Bradford for good standard descriptions since" the close of the last series:—

Feb. 7 Mar. 1. 1 d. d. d. d. 80's Colonial tops ... ' 89J-30 28-28| 70's Colonial tops ... 28r28i 26|-27 64's Colonial tops ... 26|v27 25-25£ 64' s Cape tops ... 26-2)3| 24f-25 60's Colonial tops super 26-2S£ 24£-25 60'sCol. tops ordinary 25,25* 24f.24i 58's Col. tops average 23-20$ 22§-23P 56's Col. topsv average 22-22* 20^21 50's Col: tops average 18-|B| .16^-17 46's Col. tops prepared 1646* 13*-14 40's-Col. tops prepared 1343J-. 11-11 * 36's Col. tops prepared 12J-12* lOf-11 32's Col. tops' prepared 12-12£ 10-11

It might be interesting to know that when the March series began a year ago 70' s Colonial tops were well worth 29d ; super 60' s 27* d, and 40' s 17*, and in- the opinion of some experts the latter were to go to 20d by the middle of the year- The transformation in wool prices has been thorough, and there is no comparison between manufacturing conditions today and what obtained twelvemonths ago. It does indeed seem strange that the whole industry shouk} find itself at this moment-, in such a state of utter collapse, for both fright and fear seems to be entirely dominating the whole situation. How far this is justified remains -to be seen. Perhaps Coleman Street will show where the raw material actually: stands, and generate a stronger feeling of confidence.

A BLIZZARD AHEAD

The above was written before I left home for London tb be in readiness for the opening of the second series which commenced last Tuesday: The usual contingent left Bradford by the afternoon trains, but from conversation with acquaintances it was plain to be seen that no one was in good fettle for the sales. Still many of us must go even if we want little wool. Nothing struck me. mo^e as I went round valuing on Tuesday morning than the absence of familiar faces, plenty stopping at home till they saw how things shaped. The offerings this series, is 200,000, bales, and hot since the July sales in 1902 have.we had such a large quantity. The quality is about equally divided be^ tween merinos and crossbreds,. and more than sufficient to satisfy all sections of the trade. The pity is that users are not keener, but then plenty of wool bought in January has not yet left London, and with .prices dropping, a very undecided feeling is uppermost in all members of the trade. Before I left home an old member of the trade with a record of 45 years experience at the back of him said that he discerned signs of the worst "blizzard" in wool prices that he had seen in all his life—not a very inspiring thought to set off with. .

FLAT OPENING

The three catalgues submitted on the opening day were rather poor, neither the merinos nor crossbreds being up to the mark. Evidently selling brokers were not in a humour to submit their best clips till they saw how things were going to shape. The - fine wools lacke^ style and character, while the crossbreds were nearly all little farmers' clips from New Zealand. . It is more than ever manifest that less skirting is being done, and ' carelessness was everywhere manifest. lam certain that many growers will have a rude awakening when they get to know what their last clip sold at. Punctually at 4 p.m. the sale began, . and bids came slowly. Evidently cautiousness was the line of action for everyone, competition being limited and spasmodic. Only the home trade was m evidence, and but for Brad- . ford the "show" would have been a very tame affair. As it was there was nothing of that life and "vim" about the room that we have seen for years "back, and I called the opening a very flat one. The Continent did next to nothing—both France and Germany being practically spectators. America—represented by some eight buyers—was simply an onlooker, the wools on offer being hardly good enough for that quarter. When com-

pared with the close of the last series, the following changes were seen:— Combing merinos... id to Id decline Faulty merinos ... 1£ to 2d decline Fine crossbreds ... .• Id decline Medium crossbreds Id to lid decline Coarse crossbreds ... Id to l£d decline Best slipes id to Id decline

Short, faulty slipes Id to 2d decline

The decline was most pronounced in all faulty wools, especially scoureds, and these oftentimes were down 2d per Ib. There seems to be little call

for shabby,' burry wasty wools of an extract character. The\ dingy crossbreds were all down ljd per lb,though the light arid bright parcels sold' at withm Id of last sales rates. These results were just about what were expected, and t6 Colonial growers they are bound to be very disappointing. There is not a sound feature anywhere, and I am only afraid that things will get worse before better. Bradford firms and brokers who were heavy buyers last series did practically nothing on the opening day, and the sale passed off without inspiring anybody. ( - ( The secod day's sale brought out a better selection of wool, more variety, but no better sitting took place. The saleroom was quite as full, but the bidding lacked animation, and seldom did it reach anything like, 'the high character that one is accustomed to. There-is on the part of everyone too much of the spirit of fear and want of confidence to inspire anyone to do his best, and only the very lightest parcels command real serious attention. The Continental trade has been a little more active than on the opening night, but neither Germany nor France is taking its share of wool. American buyers might as'well be at home as here for what they have done so far. Opening prices are just about maintained, but no more. Brokers hardly know what to make of the situation, and I should not be surprised to see both a curtailment of selling days and quantity as.well. It seems to,me foolish to force wool on to an unwilling market, and while I never believe -in carrying forward heavy^. stocks, still at a time like this there seems to be no other alternative. The trade itself could very well [have done without' any series at all, but the wool is here and some at least must be sold. To see prices fall another Id to 2d per Ib, must indeed be galling to all consignors.

THE OUTLOOK. / Messrs H. Dawson and Co. in speaking about the outlook say : "The interval has been one of unallevia'ted dulness and stagnation.Mistrust and pessimism have apparently possessed every branch of the industry. The depression has been aggravated in various ways both by disinterested sensation-mongers, and by interested speculators. The result has been a serious restriction of business and de^ creased consumption; in every branch of the industry; while so far as crossbreds are concerned a veritable dry rot in values has ensued.

There can only be one way out of such a ditch towards ,that confidence which ensures a free demand, and that is by the way of cheap wool and cheap money. Happily there has already_ been rapid progress made in that direction since the new year. The sensational shrinkage of values in crossbreds indicates that we have travelled a long, way towards safe ground, and it is not easy to believe that we have much further to go. The new level cannot fail to stimulate demand m many directions, if slowly, still surely. Alongside with this money is now cheap, and this will bring welcome relief to those who carry stock, and,will enable the many who have acted with a zealous caution to operate more freely. Speaking of merinos, the position has been much better sustained It has been a fortunate thing for the industry that these were hungry machines waiting for the early and hielr priced purchases made at the beginmg of the Colonial season. These have practically gone out of sight at a minimum of loss to the topmakers and spinners. The apprehension and mistrust anpears to centre in the future rather than in any serious burdens that have lo be carried at the moment The caution which has characterised the fine wool branch for the past twelve months has been a great safeguard

against collapse and disaster, and today this hand-to-mouth policy still obtains. Those who have latterly been actively "bearing" the merino markets, by selling freely at low prices, will probably he 'forced to operate :in faulty combing sorts at the present series, and this is a factor that may help to strengthen the merino market at its weakest point. ' In the nervous state of the industry there has been an unreasoning concern about the larger offerings in London. It is perhaps necessary to emphasise that this does not mean an increased Australian, production for the year. Most Australian houses forecast a decrease,1 and Messrs Dalgety and Co. estimate it at 40,000. bales. Our correspondents place it as high as 70,000 bales. Anyhow, the enlarged list for London is simply a transference from the Colonial markets where the decreased sales this season, against the last one, will probably be about 150,000 bales. Taking Messrs Dalgety and Co's figures, there will thus be 110,000 bales more wool to be offered in London; a moiety of this has of course passed the hammer already."