COMMERCIAL

Nelson Evening Mail, Volume LXIV, 24 March 1930, Page 10

COMMERCIAL

WELLINGTON WOOL SALE Messrs K. Buxton mid Co., Lid., are in receipt of the following report from llieir Wellington agents regarding the lit'lli sale of the season. — Unfortunately (lie market showed a further decline in sympathy with the present Loudon series; values coinpared with (he lasl Wellington sale were down Id (o lAd per Hi. Competition was general and animated up to a point, (lie mainstay of the market being Bradford. .Most growers were prepared to sell on a basis of prices realised at the last local sale and we should have cleared our catalogue had there not been the above mentioned decline. Our supplies came from the Wairarapu, Manawatu, Kuugilikci, Nelson and the

King Country, The following prices were obtained by Messrs E. Buxton and Co., Ltd., for wool sold on behalf of Nelson clients: OF/0.1 6Jd; AGB/D 6Jd; LMF 7d; IJ/W 7UI: 111* (i.|d; EE/M 4. : ;d; AS 7 Id; 0118/X 7Ad; L/LM, G/X, CJEB, KRS/W, AID 7.U1; GB/M, JB/H Kid; .18, LI, TE/M, 17, Old; B/W, li-.'d; l'B conjoined, OC/K 5Jd; EEC SJ(I.

Messrs Dnlgoly and Company Limited report under dale 21st March:—

At Ihe sale held yesterday (he total offering amounted to about 11,500 bales, the wools being mainly of crossbred type of medium quality. Very few Merinos ami halfbred were catalogued, (lie small offering of same combined with medium quality being insufficient to quote on. Cables lately received from London reporting on the opening of the March series made unpalatable leading, but nevertheless brought the position forcibly before growers that the overseas market was in as weak a- state as that of Australia and New Zealand. The exceptionlly heavy offering in London (190,000 bales) was recognised under present market conditions, as being rather too large a total to be absorbed at our series, especially as the Australian sales are still in full swing, and it was fully anticipated that rates at to-day's sale would show ii decided fall on prices received at the last Wellington sale held on 3rd March, 1930. With such figures before one (he grower naturally asks why such a depreciation in value of the textile should take place within so short a period. With such fluctuations, sheep farmers must he classed as a speculative venture instead of being a legitimate and sound producing business. The average price at which wool is being sold at today leaves no profit to the producer, and how long the present low prices will last, is a matter of conjecture. The manufacturing side of the trade may say the wool grower must lower the cost of production but an apt of retort from the producing side is that conversion cost must also bo reduced. We estimate that up to date 70,500 bales have been sold in Wellington, and with our further sales to be held in Wellington in April of say 7000 bales will work the total for the main selling season 77,500 bales, as against 114,000 bales sold in 1928-29. Estimating that an extra 5000 bales have been shipped in growers' account this season tins leaves 31.500 bales held over by growers in the Wellington district.

Buying at the sale was keen up to a point, Bradford taking the largest share, approximately 3000 bales; Continental 1500 bales, U.S.A. 750 bales, scourers 'and speculators 1000 bales. As compared with last Wellington sale held on 3rd March we quote all grades crossbred and fleece Id to lower, bellies and pieces and lambs generally Id lower. It hardly seems possible for prices to come much lower, and it is reasonable to suppose that rates have now just about touched the lowest point. Growers who are still holding wool will have tiie final opportunity for this season if offering their wool at the Wellington sale to be held on 14th April. Out of our offering of 2000 bales we sold 1460.