LONDON WOOL SALES

New Zealand Herald, Volume LXXIII, Issue 22412, 7 May 1936, Page 7

LONDON WOOL SALES

PRICES UNCHANGED TREND IN BUYERS' FAVOUR SOME HEAVY WITHDRAWALS The May series of London wool sales opened on Tuesday, with prices about on a par with those ruling at the close of the last sales in March. However, the tendency was in buyers' favour and high limits caused some large withdrawals. It is possible that political events in Europe, especially Franco, may have affected the tone of the market. A Press Association message sent from London on Tuesday states that tho sales opened with an offering of 10,097 bales, including 4888 bales of New Zealand. A total of 7974 bales was sold. The selection was good and representatives. Competition was rather active, chiefly from tho Home trade. However, business was checked by sellers' high limits, which resulted in largo withdrawals. A New Zealand greasy crossbred clip "Highfield" realised 12d top price and 9Jd average. Quotations for good average condition at tho close of the March series were: —New Zealand greasy Merino, super, 60 to 64's, 17id to 18 id per lb.; ordinary, 60 to 64's, 15d to 16d; inferior, 60 to 64's, 12Jd to 13d; halfbreds, 56 to 58's, lid to lod; 56's, 13d to 13Jd; 50 to 56's, IOJd to 11 id; crossbreds, 50's, 9Jd to lOd; 48 to 50's, B]d to 9d; 46 to 48's, Bid to BJd; 44 to 46's, to to 82d; 36 to 40's, 8-jd to B£d. Prices per lb. at the opening of the May sales in tho past three years compare as follows: —• 1934 1935 193G ddd d d d Merino . . 15! to 21 10 to 14J 12 to 18 Fine xbred 0J to Hi 7i to 8i Si to 10 Med. xbred 5J to S} 6J to 7 8J to Course xbred 4> to <ij 6 to Gi 8i to 82 PRIVATE CABLEGRAMS RANGE OF QUOTATIONS The following private cablegrams, dated May 5, have been received: — Bank of New Zealand. —The sales opened with fairly good competition and a large attendance, but without quotable change in prices. Greasy Merino and crossbreds arc generally firm, but any change is in buyers' favour. New Zealand Loan and Mercantile Agency Company, Limited. —There was a good attendance at tho sales, Yorkshire being tho chief buyers. Prices as compared with the previous sales' closing rates were par to in buyers' favour, with the exception of greasy Merino, which was about id to £d and slipe lambs, id lower. SYDNEY AUCTIONS VALUES REMAIN FIRM (Received May 6, 9.45 p.m.) SYDNEY. May G At the Sydney wool sales to-day 10.227 bales were offered and 8827 were sold. Also 2932 bales were sold privately. Competition was again strong and general, the Japanese section being particularly active. Values were equal to those of tho previous day. NEW SEASON'S LEVELS REASSURING REVIEW INTERNATIONAL CONDITIONS Statistically the wool position is particularly healthy and its strength has impressed those interested in Yorkshire. Justification for cheerfulness in regard to the future of the market is given by an article in the Bradford Textile Mercury and Argus. The article states:—"lt seems inevitable that the trend of prices all through the industry will be against the buyer for some time. There may be periods of temporary weakness, but there is a growing opinion that the next woolselling season will open on a level above the closing rates of the present season. The whole of the current season's supplies are likely to be absorbed during the next six months, in one country or another, and the appearance on the market of the next clip will be awaited by eager buyers. "Tho present price level is a reasonable one, and there is no doubt that it can be established throughout the industry. Past experience, however, has emphasised the danger of higher prices than manufacturers can pass on, and nobody seems prepared to launch out into speculative business on a big scale. "Several months have to elapse before the new season opens, and much can happen in that time. Unsettled international conditions in Europe create a degree of nervousness, but apart from that aspect the world certainly has more trading confidence than some years ago. In spite of the disturbing Continental circumstances, wool has sold at unusually stable values during the past eight months." PUBLICITY CAMPAIGN LEVY BY GOVERNMENT Tho announcement that he had rereived a cable message not to visit New Zealand, as the growers were already convinced of the need for a wool publicity fund, was made by Mr. R. Wilson, representative of British manufacturers. who is touring Australia to further a publicity campaign. According to the report, the cable message also stated that the Go\ernment would make a levy on every bale for tho publicity fund. Mr. \vilson is making a suggestion that Australian graziers should subscribe £50,000 a vear for the next five years, while members of the British trade contribute an equal amount. He hopes that by a cooperative publicity scheme between manufacturers and growers the public might be brought back to a realisation of the virtues of wool. . N.Z. PAPER MILLS NET PROFIT MAINTAINED [BY TELEGRAPH—ritEBS association] DUNEDIN. Wednesday The annual report of Now Zealand Paper Mills, Limited, states that there is a balance available of £23,973, including £12,210 brought After deducting an interim dividend of 3 per cent, which required £4500, there is left availablo for distribution £19,473 The directors recommend that this amount be dealt with as follows: — Payment of dividend at tho rate of 4 per cent for tho half-year, making 7 per cent for the year, absorbing £6OOO, and to carry forward £13,473. The report states that the new machine at Mataura is installed and is about to start. Production from it will bo on the market almost immediately. Results for the past three years compare as follows: — 1031 1935 1930 Brought forward £10,842 £11,519 £12,210 Net profit .. 11,177 11,191 11.703 £22,019 £22,710 £23.973 Dividend, 7 p.c. 10,500 10,500 10,500 £11,519 £12,210 £13,473