LONDON WOOL SALES

Marlborough Express, Volume LIIII, Issue 48, 26 February 1920, Page 6

LONDON WOOL SALES

ALL VALUES OIS AN EASIER

BASIS

[from our cobresponofnt.] LONDON, Dec. IS. The fact must be chronicled that /things are easier in Coleman Street. From the best to the lowest classes • the market is in favor of the buyer. Jj.-e winter estimates that there is practically 10 per cent decline, and this^6an be said to apply to the best -c&4seki|pf combing merinos, for which there jt^s not been forthcoming any- - thing,, li rap the high prices seen during %^e/qj%st week of the auctions. / #40 1 * im 1

It has to-day to be a. very good style of scoured merino combing wool to fetch the top side of 100 d, and we no longer see over 80d paid for grease combing wools. All things considered, it is as well that a spirit of reasonableness has at last come over the market, but the direct cause is the inflated rate of exchange between France and this country, for as a Frenchman remarked the' other day, the cost of wool bought in. Colemn'n i Street will bo doubled by the time it reaches Eoubaix. The writer ventures the opinion that no man can work on such a basis, for no matter how good trade mas be, the intrinsic value has been greatly exceeded vhen the cost of wool has been increased

100 per cent between leaving the selling centre and reaching the consuming centre. Every user has to look forward t,o what may b© called the ultimate effect upon his customer, and to an Englishman, cloth to-day is "stinking dear." What it will be to Continental wholesale fabric buyers when they have to purchase may be better imagined than described, for whereas to-day wholesale houses in this country are paying 24s to 25s per yard for an 18 ounce worsted blue serge, practically double that must be paid for the same cloth made en the Continent, all due to the present high rate of exchange.

FRANCE OUT OF THE MARKET

In face of the above facts the reader pan well imagine that France is practically out of the market. This has made a big difference, and is naturally forcing all the competition on to the home trade. America remains in the field for the best warp merinos, but thait is practically ' all. These are still selling at good figures. For instance a line of West Australian grease combing wools made 73d last Monday, . other greasy wools made froiti 65d to 72d, merino lambs 40d to 49d, even burry sorts selling anywhere from 35d to 40d. The market is still the strongest for shafty, warp combing wools and America is certainly taking up cheaper stocks than a fortnight ago. As a matter of fact, these wools are not over plentiful. The Australian new clip is spoken of as being very lean, fine, and shorter than usual, due to the past six months of drought. The deficiency in the new clip seems to have been lost sight of by the majority, and we fully expect that there will be as big a demand for &hafty combnig wools as ever, because spinners are still in search of good warp tops. The chief decline is noticeable in it'edium length combing wools, and here considerable ground, has been lost. There is said to be as much >s 6'd per 1b difference between shafty warp combing wool and one say of 1-J to 2 inch staple. Scoureds have suffered in consequence of very limited French competition, in fact ever since the beginning of the second week of the series French buying has beerf- disappointing, but they have retired solely on account of the position in the rate of exchange already described. The proposed French loan may do something to renew their activity with the" turn of the yeat, but it is apparent that the French textile trade is wanting a breathing space, and the writer will be greatly rristaken if the home trade does not call for a halt befoi-e the end of March. The delay in transport, and the inability of combers to get through their matehings, are factors which will have to be reckoned with in the future, particularly in view of the fao6 that combers are still very largely employed on Government rr.atchings. The Department is pressing combers to get done with them, when every comber should be in a position to put his back into matchmgs owned by topmakers. CARBONISING WOOLS. Tht fact of there now being about 18 carbonising firms in the hotve trade has made a big difference to faulty merinos and crossbreds, and these wools have sold well throughout the entire series. Latterly they have suffered on account of a slackened French and Belgian demand, but very decent prices have continued to be made, although they are 10-wer than last series. Some scoured tornebr.ck wools of the Gibb mark have sold this week at up to 81d, and Adelaide scoured Ist pieces 66d, although since lnsb writing a X«w Zealand brand (Walter " Peak) of scoured merino combing has touched

106 d. At the same time big weights of faulty carbonising wools are being offered daily, and some very reasonable .lots can be secured. It seems to the writer as if some of these wools should be worth buying on American account, but apparently their interests are centred upon grease combing descriptions.

SOME CHEAP CROSSBREDS

There is no disguising the fact that crossbreds are all in favor of the buyer, and we # do not think that even fine classes are anything like so high in price as a fortnight ago. One is not seeing 60d so freely paid for grease 56-58's, and even Geelong superfine wools are to-day selling more frequently around 55d to 60d, while New Zealand fine croasbreds are between 40d and 50d, although a special lot of beautiful quality super 06's made S2d a few days ago. Medium and coarse descriptions are certainly 10 per cent cheaper than last series, and anyone with a trade for 36's to 44's can pick up some very decent wools be Ween 20d and 25d. A topmaker can now produce 40's prepared tops quite as reasonably as the recent issue price of the Department.

Good scoureds are still selling well and the best brands are fetching big figures, but medium sorts are cer* tainly cheaper. The same remarks , apply to slipes. The Gear slipe halfbred lambs last week made 58d, a \ ye good pries indeed, and threeguarterbred lambs are still selling the ; top side of 50d, but medium and coarse descriptions are certainly cheaper than last week. The writer is convinced that the adverse conditions which have developed are entirely due to the standing out of French buyers and financial considerations have been entiiely responsible for the lowering of market rates. There has been engendered a distinctly more cautious feeling and yet in consuming markets we see steady. prices, except for crossbreds, with topmakers very vr.-uch opposed to accepting less money. The very fact of trade being &o good and spinners still offered big yarn orders is regarded as solid proof of a very sound and healthy s'tuation.

THE CAPE MARKET

For some weeks the writer lias been of opinion that prices for the raw material at the Cape had reached high water mark, and that eventually a more reasonable scale of values would have to come into force. rihe attitude of Cape houses in this centre has been frequently commented upon, these firms acknowledging that the pace set in the South African ruarbet was one which they could not follow. Since last-, writing over jOOO bales of Cape wool have been oiTered in London, a quantity sufficient to aflord a basis upon which Gape topmakerc could decide a policy, t-nd the course of prices there has slviwn that the keen edge has been taken -.ft', or afc least that Bradford fir/us are not prepared to follow the s-.vne liot pace as has recently been set m South Africa. The reason for prices there being on fiueh a high basis has been the active operations on Japanese account, and the need of that country for the time being having been satisfied and the news of the position of Capes in London apparently havig had h modifying effect, prices at" the Cape iisJlf have been considerably Modified for practically all classes. . With regard to ths prices actually paid in London, the greatest ease took place in medium snow whites. A really superior lot of Paarl of combing length was withdrawn at f'3d bid, which was about 7d per lb less than similar wool would have made if sold at the recent level. The depreciation in medium Natal snow whites was also considerable, and there was a fair supply of this description. East London snow whites sold at (iOd and good natives 56d. Greasy combing wools of Bradford type were lot represented by a really good selection, and the prices realised for these averaged around IOOd clean scoured, nine months wools selling around 84d. The supply of short six months wool ;vas too small to form an estimate of values.