WOOL SALES.

Otago Daily Times, Issue 19375, 10 January 1925, Page 15

WOOL SALES.

ADVANCE IN CEOSSBEEDS. A BOMBSHELL FOR BRADFORD. LONDON CONFIRMS VALUES. (From Ode Own Correspondent.) . LONDON, November 26. It is evident that tho prices paid at tho Now Zealand wool sales last week came as a bombshell to tho Bradford trade. It is considered hopeless for Bradford topmakers, epinnors—to say nothing of manufacturers—to attempt in the present state of the market to make pruos for their products on tho basis of Wellington values. The New Zealand market has shot right ahead of anything that could reasonably have been anticipated from the viewpoint of the wool textile industry of this country. “For the time being” (says the Yorkshire Observer) “both buyers and sellers can only wait until there is some opportunity to judge whether or not Vvellington values represent the true basis for crossbred wool for the season that has just opened. There have been steep advances in quotations for lops, and proportionately loss advances in quotations for yarns —not with any real hope of making them, or, indeed, with any particular desire to do business in the present position of affairs, but for protective purposes. Those spinners and manufacturers who are already well covered for their requirements for the first half of next year may consider themselves in a fortunate position. Big contracts have been placed during the past few weeks at prices which to-day look remarkably cheap. Those who are not covered are likely to find themselves in a difficulty from the point of view of profit-making or competitive quoting, in tho not far distant future. “It is not good for tho trade that there should bo such a violent advance, and manufacturers are dubiously shaking their heads aa. to what is to be tho outcome of this week’s developments. Tho majority ot thorn in recent quotations for cloth have given their customers the advantage of cheap contracts for yams, but these supplies will run out in due course, and replenishment will have to bo on a much h*gbor basis of values, both in merinos and crossbreds. That is when tho shoe will begin to pinch severely. Substantial increases in, tho price of cloth will be inevitable if a profitable turnover is to bo secured, and it remains (o be seen, what effect this will have upon tho retail trade. SOMETHING TO THINK ABOUT. “Wellington has provided tho trade with something to think abmt,” says Tho Bradfoid Daily Telegraph, “ami talk has boon very great over what took place at that centre. Tho event was tho opening of the Now Zealand season, and tho ‘rocket’ has gone up very high indeed. Some very good limits were cabled to Bradford representatives, but in the majority of cases they wore at least 4d to 5d under (ho market. Ono of tho biggest firms frankly said that (heir limit was 3d too low, and no doubt those who were operating on American account had instructions to buy, and no limit to bnv to. Buying for America, seems to bo ono of tho softest jobs on tho face of the earth. At least that is the general impression among Bradford buyets, who, coming info contact with. American representatives, seem _to bo able to extract from them their secrets regarding limits However, somebody has ‘rattled things’ to some tunc, for everybody was nonplussed when they received the clean scoured costs on which Wellington had moved. The wools wore pence per lb above Bradford ideas, for in many cases the different qualities had sold at a higher clean cost delivered Bradford than what the corresponding top was actually worth. IS IT A WILD SPECULATIVE BOOM? “It makes one seriously think when one surveys tho standard of values established at Wellington, and everybody wants to know what fit has come over American buyers for them to go out at the top. There must have been several firms with orders to buy without limit, and it is very strange indeed tliat the first round should have witnessed such a spectacle. It might well be said that tho prices realised were a record for a public sale m New Zealand, and everybody wants to know what is the real genuine cause. Surely this is not tho beginning of a wild speculative boom. Tho trade has too keen recollections of tho 1919-20 boom, and the tragic losses which followed, to forget what it moans when wool values are high, and a rot begins. If this standard of values is going to remain to the end of tho season, then other countries will hare to lift bigger weights than thov have done during the past two years, for Bradford will not bo oy any means the biggest buyer.” . The phenomenal rise in values of crossbreds has been confirmed this week ht the opening of the London Bales. On the first day all combing sorts wore dearer, whether greasy, aliped, or scoured, the rise being 10 per cent, in fine, 10-15 per cent, in medium, 15-20 per cent. In low. Clothing wools did not always advance 5 per cent. Capes, both scoured and greasy, were about 5 per cent dearer. Bradford was the chief buyer of crossbreds of all kinds, and the Continent took most of the merinos, the few American buyers present being very qtiict STATISTICAL POSITION. “The opening of this season’s wool sales in New Zealand last week lifted crossbred wool values far above previous price levels, ami this phenomenal rise in values (says The Times) was confirmed at the opening sales in Coleman street The statistical position of the raw material is strong. Before the war the world's production of wool was about 3,200,000,0001 b, while this year the output is not likely to exceed, say, 2,750,000,0001 b. World consumption of wool, on tho other hand, has increased. Tho American continent produces 250,000,0001 b less, while the United States has almost doubled her average pre-war consumption. Tho Continent is very near its pre-war consumption figure, and the Far East has greatly increased its absorption. During the Inst 12 months, however, the American textile industry has been particularly depressed, and its machine consumption has not been more than half that of the previous year, while its wool stocks have also been reduced, American buyers have now entered the wool market in order to replenish their stocks and to meet tho growing demand of their textile machinery. This factor is undoubtedly largely responsible for the upward course of prices of certain varieties of wo ok”