THE WOOL MARKET

Otago Daily Times, Issue 14357, 29 October 1908, Page 3

THE WOOL MARKET

' 1 ■ {PROSPECTS FOR THE SEASON. (Frou Our Own* Correspondent.) AUCKLAND, October 28. An important report bearing on the state of-the wool market at Home lias been furnished to Mr H. G. Stringer (secretary of (he Auckland Farmers' Freezing Company) by Messrs Willans and Overbury, the well-known English (inn, Jn the course of the report the writers state that, allowing full consideration to the necessarily prolonged effect due to the financial crisis which occurred in America towards the close of last year and also to the general decline which has overtaken all trades, the present level of a,ll grades of crossbred wool, with the exception of Die limited class taken by American buyers at the May and Julv auctions, is unjustifiably depressed. On the approach, therefore, of the arrival of the new season's clip it is of importance to growers that some features affecting the present and future situation should be placed before them. " Perhaps one of the most arguments for regarding the existing prices as unreasonable," it is stated, "is to be found in the extraordinary rapidity of the fall, which is shown by the difference between the former occasion, in 1901, when crossbreds reached the lowest point and to-day. In the previous instance the period of steady decline wa-s spread over four years. On this occasion, in a space of six months —October, 1907, to March, 1908,—the ordinary (Bradford) style of crossbreds fell from 12d to sjd. We cannot think that it can be alleged that any trade depression can account for such a coilapse in so short a space of time: indeed, Die active competitiqn and the unchecked, if moderate, improvement in values witnessed since the lowest point was reached affords evidence to the contrary. The policy of declaring the approximate quantities at the May and July auctions which would not be catalogued has had a most reassuring effect on the trade, and though criticised in some quartos, where it had been hoped that the level of 1901 would agaii| reached, its wisdom is generally unquestioned. It was thought that the improvement that occurred at the May auctions would have been followed by a more pronounced recovery that the Jii to -jd rise quoted for Bradford crossbreds at the July auctions, but requirements had not shown the necessary expansion, and the German crossbreds yarn trade continued very dull. Within the last few weeks a more cheerful tone at Home and abroad has shown itself, but for the present ami immediate future no material alteration in values is considered warranted by the state of trade. But it is permissible to believe that next year may prove more favourable to growers, 'the cheapness of coarse wools must stimulate increased consumption of these grades, and' in this connection it must be borne in mind that changes cannot be made all at once. Merinos, largely, no doubt, owing to the recent extreme price of crossbreds, have been the fashion to a constantly-increasing extent, but we may now again look to fabrics made from coarse wools coming into favour, with a resulting improvement in the price of the raw material. The effect of such change, however,, could not affect the present situation, but once established would go far to ensuring that continuous improvement which will restore crossbreds' lo something like their proper level." Buyers not unnaturally-expect this year to secure bargains in the markets of'the Dominion, and the usual efforts will no doubt be'made to talk prices down; but though by no means satisfactory the present position of affairs indicates- a fair prospect of later improvement, and tne experience of past years has shown that it is only very occasionally that growers who offer locally have reason to congratulate themselves. '