WOOL IN LONDON.

New Zealand Mail, Issue 1732, 10 May 1905, Page 64

WOOL IN LONDON.

(From a Correspondent.) LONDON, February 17

Little has happened on the various wool centres since my report by last mail, except a determined effort on the part of holders of stock —either out of the recent sales or direct importations —to stem the untoward attack of nervousness which has been engendered by the serious fall in crossbreds, and in sympathy with this a weakening of the merino position to a slignt extent. As far a,s regards coarse wool, it really seems as if the upward movement had received its death blow, and from now onwards we may see weaker markets for this description for some time to come, accelerated to a degree not at ail pleasant for sellers by the rapidly increasing supplies from all the seats of production. In view of the high range of values established during the past few months for coarse crossbreds, a .somewhat restricted outlet of iate, coupled, as before said, with extremely liberal arrivals and shipments afloat from New Zealand and the River Plate, this set back lias not taken those who have studied the situation carefully quite by surprise, although the quidnuncs who prophesied, a long •continuance of the recent abnormal rates, are casting about for reasons to prove that tlie drop in values cannot be justified, or that, at all events, it lias come prematurely and before it was expected by the trade. It would bo ludicrous, were it not such a serious matter for holders of stock of dear wool or tops, to think that within the short .space of a little over a week the same class of wool should be sold at Id to lid per lb Less than at the commencement of the series. The feelings of those who bought at the beginning of the week in question, when tiiey saw competitors securing parcels at from 10 per cent, to 12f per cent, decline at the end of the same, may be better imagined than described, and from all 1 can learn about the prospects of the article nearly everybody 1 speak with is in a blue funk lest a further serious drop may be seen on 7th March, when the next series hero will commence. What there is to stop the “rot” now it has begun nobody seems to know, but wo might gain a little courage if trade requirements could only expand on a fair scale. As it is at present, it looks most probable that tne supply will keep us from any revival, at any rate, till the autumn. I should not write in this dolorous strain as regards crossbreds, only I know quite well that it is about time that merinos had a turn, and it is pretty clear that both descriptions cannot be in the ascendant at one and the same time. Australians will on the whole welcome tnis new development, although New Zealanders may deplore it, just as the bulk of their clip is coming into the market. I have a kind of instinctive feeling

that this reduction in the oost of crossbreds will hardly suffice to keep them in favour to the detriment of merinos. For this latter, I hope to see-a broadening out of the demand, which shall ensure the working up of the heavy arrivals, now daily coming to hand, in a satisfactory manner. I cannot help referring once again to the way in which, the huge cargoes of merino wool are coining to hand, and the enormous proportion of the same going straight away to consuming centres, and thereby putting manufacturers at their ease. Whether this is a good or bad thing for prospective prices at our March sales 1 don’t care to debate now; but I know that every effort will be mado to support values then, because such great interests are involved. lam glad to report, too, that as far as regards parcels bought for re-sale, the bankers are quite disposed to be forbearing and to give time, recognising die dimouities which have cropped up during the past few weeks in the political world, and which have to a serious extent hampered the placing of contracts, and restricted business’ in wool, tops and goods. The prospects of cheap money for some time to come must be regarded as a highly favourable factor in helping to keep markets steady, and free from financial worries, if we could only see the end of the war in sight we might fairly look for ail outburst of-activity in textiles, as well as other products, which would be very welcome, many manufacturers at home and abroad being short of orders at the moment. Merino tops are quiet, but doing better than crossbreds, which are very irregular.

From the foregoing remarks you wii gather that the situation is rather involved and doubtful, with very little •business doing in wool to test prices. The large arrivals in this port of wool from Sydney, Melbourne, Geelong and New' Zealand in transit to America are being shipped with promptitude to their destination.

The following is an additional list of purchases made at the recent sales for America:—Port Phillip Greasy: WB over Trawalla, super, com Is 3d, Is 4d, Ist com Is 3kl, 2nd com Is 2d ; S'eross, Ist ebk Is 2d, Ist*Lincoln lO.ld, Is Okl. Sydney Greasy :G RLY, Ist com Is Old, Is Id. That market has fallen away considerably in tone of late, and cannot bo called active.