THE PRICE OF WOOL.

Otago Daily Times, Issue 14685, 19 November 1909, Page 4

THE PRICE OF WOOL.

The prices realised at the first wool sale of the season in Christchin'ch show an advance on tho range of values at A'apier and Wellington last'week, and are considerably above the rates that ruled ut tho .November sale in Christchurch last year. This is exceedingly good news, since the value of the wool export from the Dominion constitutes one of the main factors in the prosperity of the people. Since 1902, when the value of the wool shipments totalled over three and a-lialf millions sterling, until 1907, when it had increased to seven and three-quarter millions, the export showed a gradual yearly expansion; and to some extent the financial difficulties in which New Zealand became involved last year were due to the sudden drop to less than five and a-half millions, or a value below the' figure for 1!)U5. it is, therefore, a, happy augury of a returning prosperity that in a season which promises well as regards both the weight and quality of the wool yield the prices already realised, should be higher than those o"f last year. The activity of the wool markets in the United Kingdodi, in America, and on the Continent was productive of a remarkable rise in prices at the wool sales in London at the end of September. This advance, where merinos and crossbred* were concerned, was equal to 20 per cent, upon the previous sale*, whilst all descriptions of wool were eagerly purchased at from 10 to 15 per cent, increase. From reliable sources we learn that this sharp advance, rclleried in tin; New Zealand and Australian sales, is due to the fact that English manufacturers have allowed their stocks to run down, whilst in America and Europe trade is showing a real revival. This view of the situation appears to be borne- out in j the report from Christchurch. that fifty buyers, representing British, Conti-1 nental, American, and colonial firms, competed keenly for the various lots, and that very little was passed in unsold. There seems to be some little difference of opinion in regard to the future, and tho belief has been hazarded that so rapid an advance in values will bo followed by a slight set-back in the i market. The experience in all produce 1 markets is that a sudden rise is often followed by a slight recession, even when the upward movement ultimately asserts itself; and it may be that buyers whose hands have been to some extent forced by shortness of stocks of wool, having filled their immediate requirements, will for 'a while /hold off tho market, with a view of checking tho upward trend in prices. But the weight of opinion on the part of those who carefully watch tho wool market is iu favour of the product continuing to make good figures. There is good' reason, consequently, to expect that the prices that will be realised at tho opening sales in Dimedin will be such as to gladden the hearts of the many who, directly and indirectly, are interested in the staple. Certainly' the immediate prospects will incline flockmasters to make tho early catalogues as lengthy as possible, and to sell outright rather .than hold their wool for impossible limits. The history of the sales in recent years has been to sup ; por'fc the safe old.adage that a bird in the hand is worth two in the hush.