ENGLISH WOOL LETTER

New Zealand Times, Volume XXXIII, Issue 7978, 8 December 1911, Page 8

ENGLISH WOOL LETTER

A REACTION IN PRICES,

(Specially Written for “N-Z. Times/'} BRADFORD, October 27.

Another important change has come over tho situation, and instead of the market being in a loose and depressed condition, as it has been for a good month past, a natural reaction has taken place. This is what could only be expected when the prico of fine tops has dropped 5d per lb in the course of six weeks. We have said all along that spinners have had their eyes firmly fixed upon 2s as tho prico for GVs tops ior January delivery, and directly importing topmakers were prepared to accept that prico several jumped in. A week ago many spoke very lightly of the situation, and somo even made an attempt to convince several of their competitors that they had not even sold at that price. It now turns out that a far larger quantity has been disposed of at 2-ld to 2-lid than was generally supposed, and whichever way ono turns among spinners, they say they have been able to get in for somo reasonable weights at the figures named. At tho moment we mivs disposed to congratulate the buyer more than the seller, and although prices from Australia aro reported to be firmer, yet the impression is general that those who have sold at such low figures, although they cannot cover same to-day, yet they will do so between now and the end oi November. Of course, there is tho question of getting tho wool home in time to make deliveries early in the new year, but spinners will have to exercise a little patience, and not unduly harass those who have accepted such low prices. We aro certain a fair amount of business has been done on forward account during the past fortnight, and it is the fact that Yorkshire buyers in Australia cannot cover at the price which largely accounts for the firmer cables which have come to hand. It seems sense that when a topmakcr sells forward he naturally wants to bo getting hold of the wool in some market or other, and with Australia being tho only selling centre, there is no time to lose in buying the wool and getting same homo ready for making deliveries in January.

MERINOS DEARER. Tho outstanding feature of this ■week's market is, as already stated, a firming up in merino qualities. East Monday it was plain io be seen that, owing to firmer prices in Australia, topmakers would not go on soiling on the same basis as the previous market day, and with further confirmation of hardening values, yesterday’s market proved to be the best we have seen lor some time, ino result is that all importing topmakers have now put fchoir foot down, and are unwilling to take on farther obligations under 2nd for a standard GTs top, delivery during the early months o± next year* Two or three of our leading importers say candidly that they will not soli even at that price, and they are to-day wanting 2s I£cl. We do not think that up to the tun© of-writing any firm is prepared to pay that price. One firm in particular seems to be pursuing different tactics from what they have done in past years, and say plainly they are only prepared to sell when they have bought. Some have asked the question. "Have two or three firms secured part wool in Australia on a basis of 24id to 2fid. and are they now attempting to force others up to their own standard ?•" Be that as it may, there is no disguising the fact that prices are ■ firmer, and business can only be done by ■ paying more. Of course, it now depends whether spinners are prepared to follow the demands of topmakers, and we strongly maintain that upon' them is going to rest tho . future of prices. It topmakers can dispose of large weights of tops at 25d, it will necessarily- force a big covering movement in Australia, and then for the time being prices will, inevitably appreciate. On this question two very different and distinct opinions are expressed. Many strongly assert that the present move is simply a Hash in the pan, a natural reaction, and they fully expect that in tho course of a fortnight prices will be back to the low level of last week. No man can say definitely whether this will b© so or not, but all the same, now that a move forwaixl has been made, the object which the trade of the West Riding has in view, namely, obtaining large supplies on a cheaper basis than last year, can easily be defeated. Many point to the fact that we are only at the. beginning of an importing season, and if patience and diplomacy are exercised,*th© foundation can be laid for doing a successful season's trade. THE ATTITUDE OF SPINNERS AND MANUFACTURERS. As already said, those who have been able to get in at the bottom have bought anywhere from 100 to 1000 packs, just according to the 'standing of the user and the size of his business One of the best firms that we were talking to yesterday stated emphatically that they found that most spinners were very much against following the upward course of prices, it being their opinion that there .was nothing to warrant any on© in being keen to cover. There is just a margin profit on to-day’s yarn prices for Botany qualities, but nothing near what obtained three months ago. They- say candidly that manufacturers are prepared to place yam orders providing reasonable values are taken, but they are not so well situated for piece orders oa they were a year ago. This brings us back to the broad principle we have laid down, namely, that the future course of wool values is going to depend upon tho amount of business that can bo actually done. in yarns and pieces. The most surprising thing to the trade at this end is the reported free buying of wool on German account in Australia, for Bradford houses with a large busincvss connection in the Fatherland are unanimous in stating that it is impossible to obtain new business on a profitable basis. CROSSBREDS STILL UNSATISFACTORY. The past week has brought out nothing new in regard to crossbreds, except that they are to a large extent sentimentally hotter. Owing to the rather serious decline of the past mouth, one can only expect to see prices steady, but we doubt if any more money could be mad© for S6's to 46's than a week ago, or for that matter eren 50’s. Both medium and coarse qualities hare certainly gone through an exceedingly depressing time, and much money must have been lost in colonial descriptions. No doubt tho majority havo been preparing for the opening of the season in Buenos Aires and Now Zealand, but it seems doubtful if wool will bo bought as cheap as many are anticipating. We have every reason for asserting that 12d will bo limit given to Bradford buyqrs in Wellington to work to on tho seventh of next month, and no one can. afford to pay more with prices for tops as they aro to-day. One has, only to look at the demoralising figures which are being taken for single 30*s yarn and corresponding counts, to seo the necessity of obtaining wool at a handv price, and if the raw material can be bought to bring in 40’s prepared tops at a shilling, we think importers will - be justified in buying freely. Wo mnst say that we are not so sanguine as some about an immediate recovery in crossbreds, for conditions on the Continent ara nothing to what they might be, and the political complications tire not altf gether out of the way. It is this fact which forces home the conviction that w.ioi must be bought cheaper, otherwise no good will be done. There is a fair demand for 56’s and sS’s tops, hut we cannot report anything better in regard to i6'a down to 40’s, and some very little prices are being made. It is now freely admitted that 12}d has been taken for 3G’s. and 12Jd will buy an average 40’s prepared in considerable weights.

SHEEPSKIN SALE. A two days' sheepskin sale has taken place this week, the quantity catalogued being 9360 bales. Australasian shippers must have done rather hadly, for the series have been marked by considerable

•* s:rve, and although the usyal number f buyers put in an appeArance, yet competition was slow, and the sales dragged, a larger quantity than usual being withdrawn. Prices have undoubtedly suffered a rather serious setback, and on an average must be quoted 10 per cent, down, the fall being most pronounced on full woolied grades, both merino and crossbred, while tho rates paid for short and shorn lots showed very little change from the previous level. Of course, this decline only harmonises with the fall in merino and crossbred fleece wools, and fellmongers were bound to reduce their limits in face of the full penny decline in merino and crossbred tops in Bradford and Koubaix. When compared with tho prices current at tho sales held last September 6th and 7th Messrs 0. Balmo and Co. quote the following alterations;—Merino, full and three-quarter-woolied, id to 3d cheaper; merino, half-woolled, £d cheaper; merino, short and shorn, par to pi cheaper; crossbred, fine, full and three-quarter-woolled. j[d cheaper; crossbred, coarse, full and three-quarter-woolled, id cheaper; crossbred, half-woolled, §d cheaper; crossbred, short and shorn, par; lambs, id cheaper.

AMERICAN NEWS.

For the moment the ■wool trade at this end seems io have lost sight of conditions across the Atlantic, the long delayed change in the tariff and the rexusal on the part of United States importers to buy freely having the effect ol causing Bradford shippers to lose heart. We are told on good authority that about 60 per cent, of the American textile machinery is now running full time, and a settlement of the uncertainty regarding the tariff would lead to more business. We have in this week the following from an important Boston authority, which show's what conditions are like across the Atlantic: “Regarding the tariff you may have a wider view on this subject, and 1 hope your view will turn out correct and that Mr Taft will be able to put into law a Lower tariff Bill. Men here seem to doubt his ability to do. so in December owing to the ’ opposition majority vote, but politics have generally surprises in store. If we could get this Bill settled and done with X am sure it would help business, as this present uncertainty is killing all expansion in trade, and I don't believe the Bill Mr Taft would sign would ruin the mills here. The purchases you report in Londou (2000 bales) for this side will be altogether, I think, on mill account, and it is a case of wanting a few for special goods, but what is a thousand bales for a country of this size? I agree with you that we are on the eve of lower prices for raw material, and the fall has not yet started with you in Bradford. No doubt there .aro ample■ stocks of crossbreds in wool and tops in Wonstedopolis, and these will have to be sold, but lowering prices would not bring about heavy sales. There is no change here, and the policy of buying just for actual needs is being carried out consistently by manufacturers, with the result that .dealers have to exercise patience and wait. Prices aro about the same, domestic wools being the favourites, as they are relatively cheaper than colonial sorts. No large buying of wools in the colonies or Europe for this side is likely uncertainty surrounding the tariff.”