SEASON'S WOOL SALES.

New Zealand Herald, Volume LXVII, Issue 20491, 17 February 1930, Page 8

SEASON'S WOOL SALES.

reduction of offerings.

BUYERS . MAY NOT ATTEND.

STATEMENT BY ASSOCIATION.

[BT TELEGRAPH. —OWN CORRESPONDENT.] CHRISTCHURCH, Saturday.

A serious position has arisen in respect to offerings at wool sales in New Zealand. It is reported' that unless centres in the Dominion where wool is sold are prepared to offer at least 20,000 bales at each of the remaining sales this season representatives of wool buying countries now operating in New Ze.aland will not attend the sales.

The New Zealand Woolbiiyers' Association discussed the position to-day and the following announcement was made: — "The New Zealand Woolbuyers' Association is in receipt of instructions from the various wool federations, which have already appeared in the newspapers, and the buyers will have to follow these out to the best of their ability. It is hoped that the selling end will do all that is possible to prevent the disarrahgement and dislocation of previous selling arrangements by offering reasonable quantities."

In view of the low wool prices there has been an agitation to have the selling season extended beyond the originally prescribed limits. This has been opposed by the principals of the purchasing houses at Home and abroad on account of the expense in maintaining the army of buyers here. The offering at the next Wellington sale, next Wednesday, has been cut down to 14,000 bales out of an allocation of 27,000 bales. Similarly at the Napier sale on February 25 only 15,000 bales are to be offered out of an allocation of 25,000.

It is pointed out that if buyera'do not attend the sales the small grower who cannot afford to hold will be in a •particularly bad position. Those who can afford to send their clips Home may do so, but they will have to meet freight and handling charges.

HOLDING WOOL BACK.

QUESTION FOR GROWERS.

unrlmunerative prices.

If wool is held back from sale it will be by decision of the growers, not the brokers, according to Sir. E. J. Marquet, president of the Auckland Woolbrokers' Association. Asked what would be the local effect of the decision of thq New Zealand' Woolbuyers' Association, telegraphed from Christchurch, that overseas buyers shall nob attend the remaining sales unk-ss a minimum catalogue of 20,000 bales is offered at each, Mr. Marquet said ihat the Auckland Woolbrokers* Association had had no official advice of the buyers' attitude.

So far as Auckland, at least, is concerned, the point, was emphasised that there .was no question.of the' brokers holding back wool. Whether the. growers were prepared to accept the prices now ruling was another . matter. There was no law to force the wool-growers to sell their clips for less than they wis'hed to accept. With the third Auckland sale six weeks away, it was not feasible, in the existing circumstances, to forecast the size of the offering, although it would probably be about 20,000 bales. The unsold wool in the province must total nearly 30,000 bales. Not a great quantity had been passed at the first Auckland sale, but from 25 to 30 per cent, of the offering at the second had not been disposed of. In the absence of any limit being placed on the third sale catalogue by the Wool Committee, the proportion of the remaining wool which would be offered on March 28 depended on the attitude adopted by the individual growers.

"The grower cannot produce wool profitably at the prices which are being paid," Mr. Marquet said. ;rj He pointed out that the Christchurch prices represented no more than a return to the level which ruled at the second Auckland sale.

CLEARANCES IN SOUTH.

COMMENT BY BROKER.

[by telegraph.—press association.] CHRISTCHURCH, Sunday.

The president of the New Zealand Woolbrokers' Association, Mr. W. C. Brydon, says brokers have not been recommending growers to withhold wool from sale, but growers had withheld it to some extent in the hope of better prices ruling later on. The South Isl;frid had had a satisfactory experience this season in the matter of clearance of \jool and withholding applied, more to •the Nort|i than to the South Island. At the last three wool sales in the South Island well over 90 per cent, of the wool had been disposed of tinder tho hammer.

In. the ordinary course it will not be possible for more than one or - two centres to offer a 20,000-bale catalogue with the season as far advanced' as it is, continued Mr. Brydon. Approximately half the season's clip has already been sold.