RETURNS FROM WOOL

New Zealand Herald, Volume LXXIV, Issue 22922, 28 December 1937, Page 5

RETURNS FROM WOOL

FIRST ROUND COMPLETED ABOUT. £1,750,000 REALISED STEADY MARKET IMPROVEMENT The first round of wool sales in New Zealand for the 1937-38 season was completed at Dunedin on Tuesday, and buyers and brokers will bo able to enjoy a three weeks' respite until the series is resumed with the ellington fixture on January 10. So far six sales have been held, resulting in a return to the grower of about £1,750,000. Although this does not compare favourably with £3,280,000 realised at the. same time last year, it is above the cheque for the 1935-36 season. Jn sharp contrast with the sensational commencement of the previous season at the first Auckland sale, the fixture this year was dull in comparison. There were no frantic Japanese buyers to hoist values to soaring levels, and the general tone was lifeless. Farmers had been warned that they must resign themselves to substantially lower prices, and their lack of confidence was reflected in the largo proportion of withdrawals. Fairly heavy sales were made privately, however, with the result that the clearance reached almost 60 per cent.

Then came the Napier auction, and in spite of anticipated passings, a, clearance of over 90 per cent was effected. The Japanese again attended merely as spectators, but the Continent, which had been the mainstay of the Auckland market, operated even more freely. General satisfaction was felt that out. of an offering of about 20,000 bales, only 1725 bales were passed at prices about id per lb. above Auckland. Confidence Increased With a slight degree of confidence restored, growers approached the Wellington auction with fewer misgivings. Wool had fallen, but they were resigned to it. They were pleasantly surprised, however, when values settled at another advance of id per I'o. An unusually small offering of 19,500 bales was placed before the buyers, and a clearance of 88 per cent was made. Bidding was keen, and at times excited, with France and Germany showing thfc way. Signs of a welcome steadying in the market were evident at Christchurch, where out of an offering of 24,000 bales. 95 per cent was sold under the hammer. Values again rose by Jd to Id per lb. The most encouraging features of this sale were the readiness of growers to meet the market, snd the fact that although there were no unduly high prices, the average was excellent and every type of wool brought bidding. A further gain of Jd per 11). was made at Timaru, and with practically a total clearance, growers had almost forgotten . the fears and uncertainties following the poor Auckland opening. At the end of the day only a negligible proportion of the offering of 14,589 bales remained unsold. Best Prices at Dunedin Dunedin brought the highest prices this season, and passings were only about 5 per cent. Continental competition showed signs of easing, but Brad- | ford took its place and bid keenly for I the first time this season. The last sale before Christmas proved an exceptionally good one, and confidence is being re-born in the industry. Since the opening at Auckland, prices have advanced by over 3id per Id. With regard to the sales in the next round, the outlook is much more hopeful at the present than at the opening of the season. Japan is reported, to intend to re-commence buying in January, and although her position is obscure, she has recently been buying in Australia. The opinion was expressed beforfe the Dunedin sale that Bradford would be forced to fill her orders shortly and the activity shown at the last auction would appear to bear this out. There has been a slight slackening in the demand from the Continent, but local mills are buying freely. Business recession in America is hindering United States buyers, who have held off so far.

From present appearances, there is every indication of a continuation of the improvement, and although growers will not receive the almost boom values of last season, they 'should at least be able to participate in a cheque equally as large as, if not greater than, in the 1935-36 season. The next round of sales will probably be marked ,by fairly full catalogues, and the offering of 30,000 bales for the second Auckland sale on, January 24 has already been filled for some time.