MARKET FOR WOOL

New Zealand Herald, Volume LXXII, Issue 22009, 16 January 1935, Page 5

MARKET FOR WOOL

SECOND AUCKLAND SALE BUYERS ARRIVE ON FRIDAY OFFERING OF 25.000 BALES With the second Auckland wool sale less than a week a wa» brokers are busy getting the 25,000 bales in the stores ready for the buyers to begin on Friday their work of appraising the elip. The sale will be held on Tuesday in the Town Hall concert chamber, commencing at 8 a.m. No figures are avail* able as to the offering of each auctioneering firm, it being more convenient to wait until the last possible minute before announcing definite figures. Each day several woolgrowers change their minds, some deciding to withdraw their wool until the third sale and others, encouraged by the firmer market at the southern sales, electing to put their wool before the buyers. Actually there are many more than the full limit of bales in the stores, but much of this wool will definitely not be offered until later The next Dominion sale is that at Wanganui to-morrow and the buyers will leave immediately afterwards for Auckland, three clear days, exclusive of Sunday, being allowed for the examination of the wool. An inspection of the clips at present shown in the stores reveals that the wool is abnormally free from grease for this time of the year and it is assumed that much of what is being offered was actually the product of November and early December shearing, which has been kept for the coming sale. The clips are representative of the Auckland district and embrace a wide range in quality. OUTLOOK IN AUSTRALIA CONSUMPTION OF STOCKS GOOD COMPETITIVE POSITION " The slightly increased range of wool prices experienced at opening Sydney January sales gives reason for hope that demand will prove capable of absorbing supplies during the second half of the selling season," states the latest wool review issued by Winchcombe Carson, Limited, Sydney. " Financial arrangements made between Germany and England have had good effects on turnover in tops and yarns in Bradford, from where German users customarily secure large weights of thoso semi-manufactures. Yorkshire bought freely at the auctions: Japan and France were also notable purchasers. " Bulky quantities of wool will be available for sale in Australia during the current half year, but during tho past few months business has been brighter than in preceding periods. In October, for example, the quantity of tops treated at the conditioning houses in France was 75 per cent greater than the July quantity, and business has since befn experienced in improved volume. Europe is gradually getting back into freer trading conditions, which are stimulating business. The tops and yarns dealt with at the Belgian conditioning houses have also displayed expansion. Holland is relatively a small manufacturing country, but establishments have shown increased activity and it is of interest to note that shipments of wool from Australia to Holland during the first five months of this season were 22,707 bales, or five times the quantity taken during tho corresponding months of 1933. " As reduced continental inquiry has been the chief disability of this Australian selling season, the improvement in consumption in that direction is a cheering development. Imports of wool' into almost all the important European consuming countries were much less during the past year than in 1933. The quantity of imported wool retained for use in Great Britain from January to October showed a reduction of 13 per cent on the previous year's total. Those factors should be borne in mind when considering the large quantities of the staple which are available for sale in Australia during tho ensuing six months. " While we do not wish to suggest that wool is in short supply, the smaller holdings of it abroad to an appreciable extent offset the larger stocks on hand in Australia. It is unquestionably essential for trade overseas to keep moving to enable millmen to continue lifting bulky quantities of raw material month by month, but with the cost of the staple 011 present levels there is a probability that sales of goods will be made with freedom. The price of fabrics abroad has fallen considerably in sympathy wth the lower wool market. " In addition, rates for wool have fallen more since last January than the prices of competing fibres, cotton and artificial silk. Cotton values, if anything, have been slightly higher of recent months. and the cost of artificial fibre has only dropped 17 per cent. The sheep's staple is, therefore, in a better competitive position than a year ago; and that fact should encourage its use. Supporting that situation is the possibility that next year's Australian clip will be less than this season. While the quantities of wool on hand at present look adequate for consumers' requirements, the more distant outlook for supplies is not so favourable."

SYDNEY AUCTIONS BUOYANCY OF MARKET BETTER GERMAN SUPPORT (Received January 15, 9.45 p.m.) SYDNEY, Jan. 15 At the Sydney wool sales to-dav 11,896 hales were offered and 10,042 were sold. Also 1988 bales were sold privately. There' was strong and general coinpetition, particularly from Yorkshire and Japan, with increased support from Germany. The market displayed buoyancy on late levels. Greasy Merino sold to IGJd. BRADFORD TOPS FIRM BUSINESS AT A STANDSTILL LONDON, Jfin. 14 The Bradford tops market is very firm but business is at a standstill pending the opening of tho, London wool sales. QUEENSLAND BANK NO CHANCE IN RATE The Queensland National Bank, Limited, Brisbane, announces an interim dividend for the half-year ended December 31 at the rate of 4 per cent per annum, unchanged. Payment will be made on February 14. MERCANTILE MUTUAL CO. The Mercantile Mutual Insurance Company, Limited, Sydney, lias declared an interim dividend of 3 per cent, unchanged, payable on February 7.