LONDON WOOL SALES.

Marlborough Express, Volume XLII, Issue 149, 25 June 1908, Page 7

LONDON WOOL SALES.

Opening of the third .series.

ANOTHER FAlifc IN MEEINOS A ANDGROSSBREDS.

[fkom our correspondent.]. . LONDON., May 15

It is possibly no exaggeration to say that sever before in its Mstary has the Colonial wool trade, been in quite so interesting a condition as it is to4ay. The fall in values has -been so rapid and so severe that enormous losses have been suffered all round. Nor do holders see which way to look for comfort. This week has seen the -opening of the third series of Doloniatl sales, jbut before entering upon a description of the big event, I .had. better state briefly the circumstances " which have transpired to make that event of world-wide interest and concern. It is well-known to every reader of this issue that during the interval all consuming centres alike have fallen to pieces, prices have ■slumped,, and instead of wool going into ( consumption at -express speed, pronounced contraction is, the order of the day. Things in Bradford have ibeen all through the interval both 4disorganiised and demoralised, while Continental "futures" 'have also slumped 'heavily. This means that consumers 'instead of lieing prepared lor the series as they, have been lor many years hack, are to-day slack set nip-, and as much concerned to know -Che fall as they recently were to know ifche rise. Men a^ ■"**■& end- of the ■world have all* along said they were fast with it, and that is true. I am just :a hit afraid that through the ipast two years all yarn and fabric buyers %aye bought a little too much; la fact, ;a year ago they were just as Tseen to put on contract orders for , yarns and pieces as'they are to-day in an opposite direction. This means I that consumption has:at last had to give -way to universal depression, and standing machinery, with mills going only four days a week, is ererywhere 111 evidence faoth at Home, on the Continent, and America. This simply i meant that wlien buyers assembled last Tuesday for the opening of the sales, they were there more 'a* spectators 'than anything, and wliife no ■doubt ther£ win be part buying, still ■there is not that prospect of » big inquiry that I should have liked to have' seen. However, buyers turned up in good force, prompted no doubt with a <iesire to see how things were going to shape. General expectation favoured a fall, but ho"w far things would decline was the puzzle that everyone was waiting to see solved. A SERIOUS FALL. To give the reader an intelligent conception of the general movement in consuming centres I give below a table showing what were current values for leading descriptions of Colonial tops when the last series finished, and on the opening day of the present series. April 2 May 11 Description d d. 70's Colonial tops ... 25 22 64's Colonial tops ~. 24 21 -60*8 . Colonial tops super . 23J 20 60's Colonial tops • ordinary 28 19 J 58's Colonial tops ... 22 19 56'b Colonial tops ... 20 17 50's Colonial tops ... 16* 14* 46's Colonial tops ... 12 10f -40's Colonial tops ... .10 8j 36's Colonial tops ... 9} 8 SUPPLIES.

# The question of supplies is a very important one to-day, and all the more so because the Importers' Committee have decided not to offer 80,000 bales, but to carry them, forward to the next July or September series. Their action has been both approved and disapproved, jusi according to what spectacles men look through. When this was announced it had the effect last week end of stopping the rot in Bradford, topmakers no longer selling forward for a fall, ceasing to offer altogether unless they could get id more. It is suggested that the prospect of all this » wool,being carried forward means an undigested dead weight on the , chest of the trade all the time? and that.the current series will be flatter in consequence. That remains to be.seen, and only time can determine how far brokers were justified in adopting that course of ■ action. However, things could not be worse, and there is just a .chance of a turn for the better coming before the July sales. Everything depends upon orders being placed, and if they are, wool prices will soon respond. BETTER START THAN EX- * PECTED. ; Tuesday's sale brought together a , very big attendance of buyers, Coleman Street Exchange being crowded. Everybody seemed to have turned up for some "cheap" wool, and a far different spirit was in evidence to what has lately been seen in Bradford. One almost stepped out of a refrigerator to summer lieat if the spirit and tone of-the sale-room be compared to the depressing atmosphere lately felt in , Worstedopolis, notwithstanding a further decline has to be registered Even the significance, of that is toned down when wool is taken freelyj and there is life and vitality about, the sale-room. The catalogues were decent, and the selection fairly representative both in merinos and crossbreds. The fine wools, were mostly Port Phillips and Queenslands, with a fair sprinkling of Capes. One could not help being struck with the spirited bidding from the^.start, and especially on Bradford account. The initial sale was vastly different to the beginning in March, and evidently men had come ! prepared to buy if the price was right —everything seemed to hinge there. Continental representatives were rather quiet except for a few lots of merinos, but then the wools were hardly their stamp. From start to finish there was no want of tone, and everybody seemed pleased with the opening. Merinos—.These sold rather irregularly. The one clip from Victoria made prices practically equal to the close of March, the wool being of splendid character, light, sound, and first-class in every particular. Average merinos sold freely enough, but generally showed 10 per cent, decline. The demand at this level was keen. ~,.~ r0ss*)F e<ls—It is here necessary to differentiate a little. The bulk of the offerings were of coarse quality. Anything good showed only 10 per cent, fall when-compared with the close of last series, but less desirable parcels, mostly, farmers' clips, which wero skirty, frequently declined 12* to 15 per cent. The feature in regard to these wools was the,.strong competition and keen bidding on Bradford account, many .evidently thinking the time ripe for buying. Slipes made 3? V™? gO(>4' A dls? lav -' and these snowed 15 per cent, decline. Capes: These were mostly in heavy condition, and of a very .wasty character. Prices must be called 10 per cent, down for greasy descriptions,

and sconaredsy wMch. rather varied, were mostly 2d per 1b cheaper. Punfca Arenas: TTie selection' was a very good one, but competition might Mve been better, these, hardly selling wp to New Zealands. Prices generally ruled 15 per cent, down on last sales' closing rates. After the sale the feeling generally was hopeful, and the way things had gone seemed to -give satisfaction. Naturally selling brokers and importers could not look upon things j as if there had been an advance, but I all the same the initial sale gave one the impression that things were grounding, and directly it is felt that the bottom is touched with confidence restored, and wool will again sell freely. • The succeeding sales have passed off with the same good spirit as seen at the opening, and prices are all well maintained. Some seem to think that the series have begun too well, and that the pace is too keen to -as*. That just depends upon the reserve-buying power of the- trader. Complaints are "heard of a bitter character from all sections of buyers about trade being very bad, and the Continent is generally very slack set up and doing next to nothing. At Home 'they say they have dear stock which they cannot move except at terrible losses, and they are not in form for buying; so whether or no .prices'-.'will remain steady, harden or give .way further it is very.difficult to say. Time only can settle the point. ! THE6UTLOOK. Messrs' H. Dawson and Co., in speaking tof £h& outlook, say: " The basis of .values established to-day has been moie satisfactory than expected, and shculd have the effect of restoring confidence in manufacturing centres. . During the past interval transactions have been very limited in every branch of the trade, but it is apparent that legitimate and ab-solutely-necessary requirements will not begin to assert their supremacy over mere-' speculative movements. The position is still hampered by the weakness of credit, and prospects are complicated by the impressions which the anticipated large withheld quantities exert on people's mind©. Tae effect of fieavier stocks in London is consequently being fully discounted. . It must bo remembered that at least 150,000 bales less have been sold in the Colonial markers this year.; these would have been, otherwise h. the hands of the consumers.1 Jt i« much better for the industry that they are unsold, and that users are by so much less stocked. Moreover, it is certain that there are les3 than normal f-tocks of raw wool in the manufacturing centres. In tops there are rather large miscellaneous holding* of crossbreds, especially on the Continent, but, the stock of merinos is almost seriously small. The reports from the combing mills in all European centres testify to this, and also to the fact of a minimum quantity of wools (for the time of the year) remaining with them to comb—less than for many years post. The early and rapid absorption of the year's clip from October to January has not been sufficiently realised. There is reason to believe that manufacturers " and1 spir.ners were seldom, if ever, working with less-margin of stock, purchases having been made with great caution and in retail fashion for months past. All eyes have been centred on the, visible stock, and especially on that existing in, Buenos Aires. The stock .there is, however, not so large as has been generally imagined. . The "a la Daisse" movement in the/Terminal markets has probably achieved, its ; renvarkable ' success (which, has thoroughly demoralised legitimate trade on the Continent) by .emphasising-'the stocks and belatad realisations of River Plate *wool. The success of the "bears" and the large profits gained havo made them bold, arid the movement is still, alive. It seems overdone if one takes into account the actual quantities available —not too large in raw wool, and ab-' normally small in tops. A few largo operations calling for- deliveries (which is not unlikely) might easily turn the tide strongly in the opposite direction. The expectations' of a good clip next year in merinos, and the fact of reduced buying power (owing to ! recent losses) will naturally tend to keep prices at a moderate level, and this is to be eminently desired for the industry. But there is no doubt about the faot that the stocks of comMng wool and tops available during the next six months are small, and would be v seriously small if the industry were, working at a full rate of consumption* In crossbreds, the position is rather more difficult to interpret, but here also much emphasis has been put on stocks, which are mostly visible, but which are not within cry of the stocks of 1&0J-2, whoa the English, South American, and New Zealand wools had reached an accumulation that blocked storage capacity in Yorkshire. There are, no such stocks- m Yorkshire now. The most serious thing is the decline of consumption during the past two months, due to lack of new business. The far-reach-ing financial disturbances, the general depression in the great industries of the country, and the losses of capital in our own industry, have crippled demand.

But aftor; all, the huge .woollen trade, with the world's growing demand for clothing, and better clothing, cannot remain long stagnant, especially as" the slackness is hot due to large overstocking of goods as in 1900, but i-ather to an extreme caution owing to high prices, and later tt> a temporary break of confidence. Consequently, , the low values now ruling should more quickly than usual (after such a fall) bring out good deE.and y with a more stable level of values.