SYDNEY WOOL SALES

Manawatu Standard, Volume LIII, Issue 238, 5 September 1933, Page 8

SYDNEY WOOL SALES

VERY KEEN COMPETITION. MARKET RETAINS FIRMNESS. (United Press Association —By Electric Telegraph—Copyright.) SYDNEY, Sept. 4. At the Sydney rvool sales to-day 13,774 bales" were offered, of which 12,717 were sold at auction; 1172 bales were sold privately. There was very keen competition from Bradford, Japan, and the'Continental buyers. The ■■market continued very firm at . last week’s closing rates. Greasy Merino sold to -22 d. The average price of the wool sold at last week’s auctions was £l(s 19s Gd per bale or 12.7 d per lb.

CHEERING OPENING VALUES

FIFTY PER CENT. INCREASE.

IMMEDIATE REACTIONS SHOWN. Big increases in value are shown by the latest cabled quotations compared with those ruling in Sydney on September 3 of last year, when the weekly average price was £lO 17s 4d a bale or 8.26 d lb. Since that date there has been a steady rise in prices, and though they have fluctuated a little, they have never returned to the former level. The full Australian 1933-34 clip is estimated to total 2,942,500 bales, but about 10 per cent, of it will be shipped for sale abroad. There was a wonderful increase in prices at the opening wool sales for the 1933-34 season on August 28, states the Sydney Morning Herald, the basis of values being approximately 50 per cent, above the average of last season. The average price was at least 45 per cent, above that at the opening sales last year. It was 30 per cent, above the prices realised at last season’s closing Sydney sales in early June, and from 15 to 20 per cent, above the closing sales in Brisbane late in June. The Federal Prime Minister (Mr Lyons) said that the news was most gratifying, not only for the woolgrower, but also for the whole of Australia. The New South Wales Premier (Mr Stevens) said that it meant more employment and greater buoyancy of trade. The Minister for Commerce (Mr Stewart) said that he had been informed by competent authorities that, if the present prices were maintained, the total gain to Australia from the increased prices would be about £12,000,000. The president of the Graziers’ Association (Mr J. Walker) said that, as far as wool was concerned, the worst was over, but the decrease in production this year might be larger than 257,500 bales estimated last June. The Stock Exchange reacted immediately to the news of the increase. The investment market was firmer, pastoral companies showing advances which indicated that the rise in wool prices exceeded expectations.

BRISK COMPETITION. Competition at the sales was brisk and general. The Continent, particularly France, bought keenly and in large volume. Yorkshire was a strong operator, taking bulky quantities. Japan showed excellent activity, and support was also supplied by. Ausi tralian manufacturers.

The Sydney wool selling brokers rej port that the wool sold averaged £ls 16s 6d per bale, or 11.8 d per lb. These ;; prices compare with an average of • £lO 17s 4d per bale and 8.2 d per lb. | for the opening week of last season. The wool sold during the first week of the 1931-32 season averaged £8 18s 3d per bale, or 6.5 d per lb. The average price obtained for wool during June of this year was £l2 4s 9d per bale, or 9.1 d per lb. while the average price throughout last season was £ll 2s Gd per bale, or 8.5 d per lb. The results must be regarded as highly gratifying. In Australian currency, prices were on the highest basis experienced during the last four j years, and the general demand experienced gives an indication that I supplies of the finer wools are needed by millmen abroad. The reduction in the quantity of wool available; for i this season in Australia and South Africa is the influence responsible for if) the special buoyancy in values. The J! Lope must be expressed that all con‘l! cerned will maintain a conservative attitude despite the increased returns i ‘ which look probable for the season’s Iclip. The sale of a clip from the western district is of interest. Last year the s wool was in good order, and this sea|i son’s product was well grown, display- | ed nice quality, soft handling condi- | tion, but showed less vegetable matj ter than 12 months ago. The prices below show the results obtained for Ijj the clip in the first week’s sales last fi season and August 28 last:

The results should not be taken as an accurate guide regarding the difference in the rates obtained for all § clips for the two periods, as wools vary in condition and quality, but they give an indication of tbe changes which have occurred in the rates ruling for greasy wools. The following figures showing the clean cost of average 64’s topmaking lleece wools on the lioor Sydney stores give a reliable indication of the position of local values compared with the opening month’s sales in preceding years: —1929, 23d to 28d ; 1931, 16d to 18d; 1930, 18d to 20d; 1932, 19d to 21d; 1933, 30d to 31d. Values trended !-i downward in September, 1929. Last February, the clean cost of the wool 1 quoted was 17d to 18d, and at the i v closing Sydney June sales 23d. The 1; market is, therefore, on a much higher level in Australian currency than in 3 the first month of the three preceding •1 seasons.

| CONDITION OF THE CLIP. 5 As a result of the dry season experi- ■| meed, particularly over the earlier i shearing plain areas of the State, the <1 new season’s wool catalogued at the •i sales showed much finer quality than ■ii last year’s product, instances of 70’s ;T| quality fine Merino being noticeable in '■£, clips which were of 64’s medium type in 1932. The wools generally were ip sound, very soft handling, and lighter in condition, and carried less vegetable !|3 fault, but more dust than a year preW viously. The finer, lighter wool has resulted in the sheep cutting consider- : ablv reduced weights per head. Con'S’'- sidering the unfavourable pastures, the M clip has opened up in attractive order, t;- : only a small proportion of it displaying wasty, poor growth. . D-l An improved market compared with ■ year ago is essential to offset the SI decreased quantity of wool which will ?|i s liorn in this State and throughout §1 Australia. Australia produced a record P dip of 3,200,000 bales last season, half M of which was grown in New South. II Wales. The quantity produced this M year is likely to be from 7} per cent. p: to 10 per cent, less, the clips from i),e outer plain areas, where drought t; has prevailed, showing a greater W' ; shrinkage. Monetary returns in Aus-

tralia during the last 12 months were also augmented by the sale of a carryover of 150,169 bales from the 1931-32 selling year. The 3,000,075 bales sold in Australia last season realised £34,410,321, in Australian currency, averaging £ll 9s 5d a bale, or 8.9 d a lb, greasy and scoured. This season it is estimated that 2,675,000 bales will be sold in Australia, and it will be necessary for that quantity to sell at an average of £l2 17s 3d a bale, or 12 per cent, higher than last year, in order to produce the 1932-33 return.

YIELD AND PRICES. The following figures show the quantity of wool sold in Australia, and the amount realised during the last five years:— Bales. £

On present indications the current clip is likely to produce the highest returns experienced since 1928-29.

SCENES IN SALEROOM

About 10,000 bales were sold on the opening day, and in two and onelialf hours buyers from all parts of the world gave, it is estimated, about £170,000 for them. In June last they would have given only about £130,000. Half an hour after the sales began, the tense atmosphere of hopeful expectancy had changed to one of joyful relief. Again and again fifteen or twenty buyers leaped to their feet and ran the bidding up in those seemingly unimportant farthings to prices nearly half as much again as those paid at the beginning of last season. The shrill whistle of the buyers as a clip realised an unexpectedly high price was music in the ears of the growers. There were moments of pride, too, when a curt English voice cut through a babel of bids from French, German, Italian, Belgian, and Japanese buyers—and Bradford took a particularly prized lot. . A few minutes after the sale began a grower in the saleroom turned to his neighbour as, after fierce bidding, a lot of his wool was sold for 17£d a lb, and said: “This morning that wool was valued at 15d.” ’ EMERGING FROM TROUGH.

“Following on the heels of the wheat agreement, calculated as it is to improve the substantial position of our wheat farmers, the results of the opening of the wool sales this afternoon are such as to bring cheer to the heart of all Australians,” commented the Minister for Commerce (Mr Stewart) subsequently. “Competent authorities inform me that if the prices received this afternoon, are maintained the aggregate gain to Australia through the sale of her wool clip this year, after allowing for declining volume, should be something in the region of £12,000,000. “The fact that our two staple export industries seem to be emerging from the trough of depression,” added Mr Stewart, “is the best news that Australia has received for quite a long while.”

“WORST IS OVER.” The president of the Graziers’ Association of New South Wales (Mr James Walker) said that the auctions constituted the most heartening opening for the past four years and strongly supported the belief that, as far as wool was concerned, the worst was over.

“Whilst this one day’s sales cannot be taken as a reliable guide to the whole selling season,” said Mr Walker, “gratification at the auspicious opening will be felt throughout Australia. It will help to put fresh heart into business and industry, and will lessen the anxiety of Governments. A pleasing feature of the first day’s sales was the widespread demand, all of our main customers being evidently eager for wool. Doubtless the decrease in wool production is playing an important part. On this point, I may say that a considerable body of opinion now is that the official estimate of the current Australian wool clip (2,942,500 bales) made by the joint conference of growers and brokers last June will not be realised. In other words, the decrease in production may be larger than the 257,500 bales then anticipated. A revised estimate of the clip may be necessary. On top of this are the reports of a substantial decrease in South Africa’s wool production, due, as in Australia, to unfavourable weather conditions. Although there is no wish to underrate the great importance of the rise in prices, I must emphasise that wool prices even now are certainly not high, and that there is still urgent necessity to reduce the main costs. These costs remain too high for the wool industry to carry, and Governments in the general interest should continue to tackle this task resolutely.” The rise in wool values had an immediate effect on the Homebush sheep market and brought about a strong inquiry, with an appreciation in values for all classes of slieej) and lambs, especially those carrying good wool skins.

1932 1933 Fleece llid 18id Fleece lOJd 18id Fleece 10id 17d Fleece 9 Jd 16|d Broken Sid 13id Pieces 6id 9id Bellies 4jd 8Jd Locks 2jd 4Jd

1928-29 .... 2,625,061 56,720,505 1929-30 .... 2.471,596 32,806,266 .1930-31 .... 2,521,361 28,203,633 1931-32 .... 2,682,113 29,363,156 1932-33 .... 3,000,075 34,410,327