LOWER WOOL PRICES

New Zealand Herald, Volume LXXI, Issue 21844, 5 July 1934, Page 7

LOWER WOOL PRICES

LONDON SALES-OPEN DROP OF 15 TO 20 PER CENT GERMANY NOT REPRESENTED Values for crossbred wool, cn the basis of prices at the opening of the London sales on Tuesday, have lost fully the rise made during the past year, and they arc now about equal to. the rates ruling at the opening of tho July series last year. In tho fine wools alone are prices still above last year's rates,. A Press' Association, message sent from London on Tuesday state';' that at tho sales 11,437 bales were offered, including 435(3 New Zealand, and about M 0.'50 bales were sold. There was a crowded attendance, no German buyers being present. Bidding was very slow at the start, but improved somewhat later. Buyers, however, were very hesitant. Compared with the May closing rates Merinos (greasy) .wero 15 per cent lower, scoured Merinos 20 per cent lower, fine erossbreds 15 per cent lower, and others 15 per cent to 20 per cent lower. New Zealand greasy halibred, Tokoa, realised between 12id and llsd per lb.; greasy crossbred, Glennevis, realised llid. The range of prices at the close of the May series was:—Greasy Merinos, 60's

to 61's, 19d to 21d per lb.; ordinary, (50's to 64's, 16d to 17d; inferior, 60's to 64's, 13d to 1-ld; lialfbreds, 56's, laid to 16Id; 50's to no's, 12d to 13d; erossbreds, 50's, 9£d to lOd; 48's to 50's, B]d to 9Jd; 46's to 48's, 8d to Bsd; 44's to 46's, 7.4 dto 8d; 40's to 41.'s, 7d to 7>Ul; 36's to 40's, 6£d to 7d. The following table compares prices with thoso at tho opening of the July series in tho past two years:—

Some variation in the range of crossbreds is shown in comparison with last year, but, on the average, valu'os are about level. "The reports indicate very unfavourable conditions in the market, and the outlook is anything but promising," said Mr. B. J._ Marquet, president of the Auckland Woolbrokers' Association, yesterday. "A discouraging sign is the heavy withdrawals, especially as Australia has recently cancelled sales. We can only hope that the market will have settled before the New Zealand selling season opens." Mr. Marquet said the German situation was the troublesome factor, and the decision to prolong the embargo indefinitely evidently had had a further depressing effect. Germany bought heavily during the past year, and might have acquired more wool than was generally thought, thus enabling a policy of isolation for some time.

BASIS FOR TRADERS DESPONDENCY DEPRECATED (Received July 4, 11.45 p.m.) LONDON. July 4 Commenting on the London wool sales Messrs. H. Dawson and Sons say the opening should provide a genuine basis for traders and check the "bearish" movement of recent months. Since March values have shrunk in Bradford much more seriously than in the Continental markets and this has produced a spirit of despondency which is quite unjustified. When the general commercial statistical position is talcen into consideration tho general business conditions in Britain are brighter than for many years past. So far as the lionle trade is concerned the textile industry _ can definitely look forward to better times. HESITATING COMPETITION REPORTS ON THE SALE The following private cablegrams, dated July 3, have been received: — Bank of New Zealand.—The sales opened with a poor demand and a poor selection. Compared with the close of the last series, Merinos are 2d to 2Jd, fine crossbreds ljd to 2d, and medium and coarso crossbre-ds id to lid per lb., all lower. Bank of Australasia. —Compared with the closing rates of the last series, prices are lower: —Merino, 15 per cent to 20 per cent; fine crossbred, 10 per cent to 1-5 per cent; medium and coarso and slipes, 15 per cent to 20 per cent. Dalgety and Company, Limited.— The sales opened with an average attendance, no German buyers being present. Competition was weak and hesitating, and Withdrawals heavy. As compared with the closing rates of last series, greasy Merino were 15 to 20 per cent, scoured 20 per cent, crossbred 15 per cent, slipes 20 per cent to 25 per cent, all lower. New Zealand Loan anc Mercantile Agency Company, Limited.-—There was a full attendance at the opening of tho sales, competition by Home and French buyers being restricted. As compared with the closing rates at the last sales prices are lower 2d to 2£d per lb. for scoured crossbred, greasy Merino and medium crossbred slipe; lower Id to lid per lb. for medium greasy crossbred, course greasy crossbred, and coarso crossbed slipe; 2d to 3d for Merino scoured; ljd to 2d, for crossbred, fine greasy; 3d to 3£d, for slipe, lambs, and fino crossbred. Tho opening catalogues were fairly representative.

BUTTER EASIER HEAVY BALTIC SUPPLY EXPORTS FROM SMALL STATES The decline in London prices for butter continues and the market is reported to bo depressed. New Zealand finest is selling at 7-4s per cwt., a further reduction of Is, the price being equal to that ruliing about two months ago. Danish is quoted at 80s to 82s, a drop of about 5s since the end of last week. According to a cablegram received on Tuesday, the market is adversely affected by heavy arrivals from Baltic States. An increase in the Baltic supply has been apparent recently and Britain's import figures for tho five months of the year ended May show a rise of over 100 per cent in the shipments from the smaller States, Estonia, Latvia and Lithuania. Although that source of supply accounted for only 4692 tons, with the imports from Russia, Finland and Sweden, the total for the five months was 20,029 tons, an increase of 50 per cent over tho figure for the same period of 1933. Tho cheese jjiarkeb is quiet, prices being unchanged. Tho New Zealand Producers' Cooperative Marketing Association, Limited, has received tho following cablegram, dated July 3, from its London office:—Butter: New Zealand, , /4s; Danish, 80s to 82s. The market is depressed and declining. Cheese: White, 47s to 47s (3d; coloured, 4os. Ike rnaiket is quiet..

1031 1033- 1032 d. d. d. d. d. d. Merino 11 to 18 10 to 14 7i to 101 Halfbred — 9 to IS 7 to 12 Pine xbrod - 6* to 8 6J to 10J 41 to Gi Crossbred G to 6; 51 to SJ 4 to G Coarse xbred 5 to G 5 to G 3J to 55