WOOL SALES

Otago Daily Times, Issue 18323, 13 August 1921, Page 13

WOOL SALES

PRICES AND PROSPECTS. (From Gob Own Corp.espondknt.) LONDON, June 21. When the Juno senes of colonial wool sales opened cm the Vtn instant there was a very large attendance, all sections of tho trade being represented, including a strong muster irom Germany. Messrs Weddel mention that competition on ail grades at the start was keen, and, under strong Continental competition, merinos advanced about 10 per cent., and this was especially noticeable on carbonising wools of fine quality. Crossbreds also met with strong demand, tho Continent again being a free ojierator in this section, but very little change was noticed from last series’ currency. As the sales progressed prices for all wools hardened, and at tho end of the first week values all round were somewhat dearer than at tho start of the sales. At the commencement of the second week, however, a slight reaction was noticeable, and there was some irregularity in values, tho extreme prices of the previous week not always being forthcoming. In tho crossbred section, with the Continent not operating quite so strongly, values receded a little, but good clearances were effected daily. During tho second week there was quite a good selection of South African wools, and those may be quoted about 5 per cent, dearer than May rates, for both grease and scoured. The close, however, was not so good as the opening. At tho outset Continental buyers manifested undue eagerness to cover their requirements, the majority of home trade buyers being altogether unable to keep pace with the advance. Evidently some requirements had to bo filled with all possibl/ speed, and directly this had been done a perceptible slackening in competition and a lower range of values soon became evident. During tho first few days of the scries there was above Sd per lb advance, both in greasy and scoured merinos, particularly for sooured pieces, bellies, and locks, but at the close most ot this had been lost. For practically all descriptions of raw material the advance at tho close could oily bo called 5 per cent, to 74 per cent., compared with the previous series, and the majority question tho ability of the trade to maintain this standard in view of the depressing conditions obtaining in the West Riding, where scores of nulls are entirely standing for tho want of coal.

“From tho very first the most experienced members of the trade doubted whether higher wool values could be maintained,” says the Daily Telegraph. “The improvement that took place at the May sa.es raised expectations of better trade and tlie stabilisation of wool values, but in face of colossal supplies and consumption in this country being leas than one-third of normal times, it seems as if higher values have come before their time. However, the B.A.W.R.A. have fixed their limits and induced colonial pastoralists to do likewise, consequently it is not likely that lower prices will prevail than were current in May, and that standard of values is appreciated by all sections of the industry. Directly the B.A.W.R.A. began to meet tho market confidence became stronger and buying increased. This policy of meeting the market will contribute to a revival of trade, and will encourage ursrs to operate. The marketing of (he new English clip has begun, and British wool growers are having a rude awakening. Good Eastern Counties down 'wools, such as were sold a year aco at 50d per lb, are selling on an average at 12d, and the highest price so fur paid for good Southdown wool is l6Jd, compared with over 60d ft year ago. Lincoln wool, which at one time was regarded as the standard of British produce, sold at Peterborough last Thursday at 6id, as against 20d at tho corresponding sale a year ago, and these prices are likely to continue throughout tho whole season. The members of the trade feel it to be a fairly safe proposition operating on to-day’s values, and it should lay the foundations for a successful trade when mills are able to work full time. Mill operatives are expected to agree to tho recommendation of their pnion leaders to accept 16A per cent, reduction on gross wages on the first pay day in July, but a reduction in tho price of coal and transport charges, is also wanted in order to bring down the price of cloth to a level nt which manufacturers can compete in the markets of the world, particularly with German manufacturers.” ACTIVITY IN GERMANY.

Many English fanners are holding their clips in the nope of an improvement. The conspicuous feature of the situation generally continues to bo tho activity of Continental users of wool, principally those of Germany, whose mills are reported to be heavily booked as far ahead os OctoberNovcmber.

dim Morning Post remarks: “Germany, evidently, has obtained much business, and must cover in raw material. Concurrently with this movement, the exports to Germany of Bradford combed wool and yarns - a most important port of Bradford's export trade before the war —have tended to decline. United Kingdom conversion costs, being higher than those obtaining in Germany, are forcing the German textile industry to roly as far as possible upon manipulating wool from the raw material slate. German-spun yards are under-selling similar Bradford yarns by 19 marks per kilo. Tho need of an endeavour to recover tho export trade appears to be recognised in labour circles as keenly ns it is by employers. After a readjustment of tho employer's original proposals for a reduction of wages, the operatives’ representatives have advised tho workers to agree to (he compromise which has boon accepted by all members of (he Industrial Council. Tho proposed new agreement, if endorsed, will remain in force until June 3, next year. There is a general hope that it will prove a decisive iaetor in securing new business for the West. Riding mills.” It is urged in Bradford that unless commission wool-combers in tho district reduce their combing charges the worsted trade generally will suffer from German competition. Prices of toils are: —64’s, 43d; 56’s, odd; 40’s, prepared, 15d.