THE WOOL OUTLOOK

New Zealand Times, Volume LIII, Issue 12393, 12 March 1926, Page 9

THE WOOL OUTLOOK

RECENT LONDON SALE* FIRST OF~THE YEAR. LONDON, January 20. . A- seriea of colonial wool sales opened in London yesterday. That the first series of the year should include offerings of 189,000 bales would scarcely hafe been expected a month ago. The December series and the present one have been considerably swollen by reason of 4:he colonial shipping strike last July and August, and there are rumours that oyer a quarter of a million bales are. at. this moment available if importers think fit to offer them.

The senes is opening with an outlook not altogether bad, But certainly not good. The conditions in Germany so far as the purchase of wool is concerned are depressing. The business Germany has done during the past year or two with Russia may continue in raw materials, but will certainly grow less in the finished article, as- Russian mills are getting to work again. France if. the other bag European competitor. French combers have such a supply of merinos and fine crossbreds that they can keep running almost at full capacity 'Until the end of February. Some purchases have been made during the past fortnight in Australia and at the Cape on behalf of French firms. Several American buyers have arrived for this senes, but whether they will be active or not remains to be seen. The crossbred industry is none too brisk, bnt prices are fairly we!! maintained for the low and fine classes. Medium sorts seem to be in less demand than any other. There has of late been very little doing in slipes and scoured crossbreds until about 10 days ago, when some of the home mills bought considerable weights. Doth they and wool merchants. however, have little inducement to lay in stocks of these wools, and if prices during the coming series are maintained at December rates importers should be well satisfied. The outlook for a month of sales at this time of the year in London, when a fair amount of wool is arriving directly to the mills from the colonies and the financial strain is is> not too good. While most mills in the. trade admit that business can be done with a small profit on a 4s basis for 64’s tops, there is little or no justification for any rise over this level. At such values growers can make a profit, and it seems as if wool prices are now somewhere near a basis. It is very probable that unless France and America start buying again before this present series closes values will ease, because Bradford itself cannot support the market

Yesterday’s sale passed off with remarkably few withdrawals, owners meeting the market in merinos, which formed the bulk of the offerings. Prices on Bradford styles were 2J-5 per cent., and on Continental 5-7£ per cent., below the December close, and most scoured merinos were quite 10 per cent, cheaper. The Continent bought freely, and Bradford took more than usual. A poor show of greasy crossbreds made very firm rates, but slipes and most scoured New Zealand crossbreds were 5 per cent, cheaper. Scoured Australian fine crossbreds were firm.