THE WOOL MARKET.

New Zealand Herald, Volume LXI, Issue 18889, 11 December 1924, Page 8

THE WOOL MARKET.

Confidence inspired by the opening wool sales of the season has been disturbed by the reports of the second sale at Napier. They show a tangible decline from the high standard maintained up to and during the Auckland sale last week. Even with this discount prices are high, and but for the precedent of higher rates ./ould be contemplated with satisfaction, buch fluctuations must be expected in a market admittedly excited by knowledge of underproduction", yet apprehensive of the 'capacity for consumption at rising costs. More surprising than the drop in prices was the inactivity of many of the buyers ; in contrast with the eager competition at the earlier sales, the majority of the buyers are described as being merely spectators. The reasons for this attitude will not be given by the buyers, who are famed for their jealous guarding of trade secrets. Their silence outside the saleroom is impenetrable. But there is no indication of any extraordinary circumstance having developed during the few days between the Auckland and the Napier sales to weaken the market permanently. Reports from London and Sydney show that its strength is unimpaired. A possible explanation of the appearance of dullness at Napier i.-; that the principal operators, those who set the pace earlier, had overwhelmed the competition and bought as much wood as they immediately required. Obviously, they have not finished buyng for the season, or they would be preparing for departure from the Dominion. It would be a speculation in psychology to predict when they will step out of the spectators' bench into the active buying contest, but a revival of competition in which the whole company of buyers will participate may be expected with confidence. That will sustain prices, probably advance them to the former level. Any suggestion that the Napier sale marks a definite reaction would imply that all the calculations of a world-wide shortage have been astray, and that the visiting' buyers made an unprecedented blunder when they raised prices to the levels successively maintained for five sales at as many centres and among them representing virtually the whole range ot wools grown in New Zealand-