RISE IN WOOL PRICES

Otago Daily Times, Issue 22122, 28 November 1933, Page 10

RISE IN WOOL PRICES

FIRST AUCKLAND SALE t a substantial advance DOUBLE LAST YEAR’S RATES BIG PURCHASES BY BRADFORD (Pee United Press Association.) AUCKLAND, November 27. A better era for the woolgrower is foreshadowed at the first sale of the 1933-34 season when' expectations of a substantial increase in prices based on the trend of recent auctions in Australia and London were more than realised. Growers had the great satisfaction of seeing their clips disposed of at rates representing an advance of 100 per cent, and over on the average for the last sale in March, and a crowded gallery of spectators followed the progress of the sale with evident gratification. The values were the best which have ruled at an Auckland sale since the beginning of the 1929-30 season.

From the viewpoint of its comparative significance to the producer'the occasion was reminiscent of the memorable sale of December, 1924, when prices soared to an average of 23Jd a lb. The offering totalled 23,768 bales. The official report states that there was a full bench of buyers representative of all the wool buying countries. Competition was animated and the prices realised were in excess of anticipations. The bulk of the lines went to Bradford, with the Continent a strong competitor and local mills securing all the super lines of fine halfbreds. The top price realised'was 25|d for five bales of super half bred hoggets from Waiheke Island. Practically the whole of the offering was sold under the hammer. Better classes of crossbred wools and also half-bred types were estimated to hive brought an average of from 12d to 13d a lb, which was 100 per cent, better than the prices paid for these descriptions at the sale last March, while the average over the whole sale was considered to be about lOd or lid a lb, which was 150 per cent, better than for the March sale. The price per bale for the wool sold would be in the vicinity of £l3, although the estimate is necessarily approximate. If this figure is confirmed when the brokers come to work out the actual details of the sale it will mean that the Auckland province has received over £300,000 for the wool disposed of to-day, compared with a return of £341,887 for the three sales last season. The average price per bale at the sale last March, when values reached their'lowest level, was £5 3s 2d, the aggregate return being £61,318, At the opening sale last December £5 12s. 3d a bale was received, the income from' the fixture being £132,118. On the latter occasion, however, the increased rate of exchange on London with its influance in the sellers’ favour was not in force. The dominant feature in the good general demand from buyers was the strength of the Bradford operators who took the greater proportion of the offering. Continental representatives were keen bidders, while Australia and Japan came into the market whenever the better class wools were forward. as usual, paid particular attention to piece descriptions, but even in this section Bradford buyers made their presence felt and frequently outbid their competitors. The Japanese mills were apparently in search of sound, bright crossbred sorts of 48-50 quality, and showed particular interest in wellskirted lines. All sections, however, contributed to the buoyancy of the sale. Not a single lot was neglected, and even old held over clips sold well. The levels were strongly maintained throughout and the percentage of passings, was negligible. An additional distinction attached to the sale by reason of the. fact that the wool forward was of outstanding quality. Brokers and buyers were in agreement that the clip was the best yet offered at Auckland. A larger percentage of fine sorts was included, and all kinds were well grown and attractively light in com dition, indicating that the flocks had come through the winter well. Early shearing also played its part in .that it was completed before the fleece had become too heavy in condition, and before seed contamination could occur. Messrs O’Brien Bros.’ top-priced clip was referred to by one expert as the most beautiful wool he had seen anywhere in New Zealand, being, he considered, of perfect half-bred quality.

The range of prices was as follows, March, 1933, prices being shown for the purposes of comparison: CORRIEDALE. • November, March, 1933. 1933.

“JUST LIKE OLD TIMES.” (Special to Dailt Times.) AUCKLAND, November 27. A triumph for the optimists was achieved fit the wool sale to-day when the onlookers saw in as spectacular a fashion as possible the depression being successfully attacked by the advance of a wave of confidence. An increase of 100 per cent, and over in the price of wool was something that not even the most pessimistic grower could grumble ' and any grumbler at the Town

Hall would have received short thrift, for the air of jubilation that pervaded the sale seemed to affect even the buyers themselves. Such a happy “ gallery ” has not been seen for a long time.

“ Quite like old times,” was a freely made comment. “ This makes you smile,” was another. “ This will do you, my boy,” said one middle-aged farmer as he ran down the stairs to grip the hand of a “boy” with a grey beard who had just seen his clip sold for llfd a lb. But that was the spirit of the day and more than one farmer tf three score and ten felt more like a boy, if appearances count for anything, than he had done for some years. It was not an unreasoning optimism, though it was realised that the sheep farmer was not yet clear of the wood, although he did seem to be on the edge of it in some cases. “We cannot grow crossbred wool under Is a lb when land values are so high,” said one grower who had cleared lid for his clip. “It is better, of course, for the man bn cheaper country, but I am very pleased with the sale. However, I shall not buy a new motor car yet.” On the other hand, another grower said: “ Give us 9d or lOd a lb and we are all right. I have left two seasons clips at home and now I wish they were here. I hope, however, that at the next sale they will realise more than the cb.p I am selling to-day. I know one man whose bales realised to-day £1 each more than. he expected. Consequently he has gone home £125 richer than he thought he would be this morning. Can you wonder that we are pleased?”

BEST SALE FOR YEARS INCREASES UP TO 300 PER CENT. PRICES ABOVE LONDON PARITY (Special to Daxlt Times.) AUCKLAND, November 27. The sustained buoyance of the overseas markets provided sellers at to-day’s wool sale with ample ground for the hope that better things were in store for them, and while recollections of the previous sale may have acted as a check on undue optimism, they received early confirmation of the fact that their confidence had not. been misplaced. Opening bids came quietly, almost reluctantly, but the strident chorus of call and counter-call soon assumed unquestionable vigour. The first lot offered —a small line of crossbreds—made Bfd, but it was not long before bids ranging from lOd to 14d disclosed the full extent of the advance for this type of wool. Three-quarters of an hour after the sale had commenced, 25Jd was paid for Waiheke super half bred fleece, and buyers, brokers, and spectators signalised _ the achievement of the new high level with an enthusiastic round of applause. The incident typified the spirit prevailing throughout the sale. Not only was the sale the best experienced for several seasons, but it was also the most erratic. On many occasions brokers found that their estimates were widely exceeded and the consensus of opinion indicated that a definite estimate of the actual appreciation in values could hardly be obtained by a general survey. There were increases of 300 per cent, in some lines of crossbred fleece wools, but it wa« estimated that an improvement of about 100 to 150 per cent, would represent the general average. , , It was generally conceded that to-day s prices were well above the existing London parity.; One broker the opinion that London rates could be pected to react to the increase here. It they failed to do so there could be no justification for regarding the'Auckland values as anything but fictitious. _ Once again the honour of securing top price at the opening sale went to Messrs O’Brien Bros.; of ktiki Bay, Waiheke Island. Five bales of halfbred hogget reclassed brought 25jd .a lb. four bales ,of halfbred wether and eight bales of halt bred ewe made 23jd, four bales °| fi”? crossbred made 15 id, and five bales of.haltbred pieces made 14|d. This completed a line, the whole of which was bought by the New Zealand firm of Ross and Glendining. At the December sale last year Messrs O’Brien Bros, secured top price of 12id for their clip, a figure which represented a record for Auckland wool for over two years. , Another clip which sold particularly well was the “ Freshwater clip of Captain Humphries-Davies, of Clevedon. Eight bales of Corriedale ewe wool made 23id a lb, four bales of Corriedale hogget 18|d, seven bales of Corriedale wether 18|d, four bales of Corriedale ewe 17d. four bales of Corriedale A 16|d, and five bales of bellies and pieces 12id. The average for the line was 17.97 d a lb and £2O 6s lOd a bale. The higest price paid for this clip at last December sale was lid, and the average for the season was 9d.

Corriedale — d. d. d. d. Super 182 to 23* Medium 162 to 182 — Superfine Halfbred — > 56/58 192 to 29* —— Medium Half bred 56’s Super .. 182 to 19* — 92 Average 16 to 18 82 to Inferior 14 to 16 5| to 62 Coarse Half bred— 50’s Super .. 16| to 18 — 72 Average Inferior 142 to 162 62 to 12 to 132 3 to 5 Fine Crossbred — 48/50 Super 152 to 162 — Average 13 to 142 52 to 6| Inferior lOi to 122 22 to 4 Medium Crossbred — • 46/48 Super 12* to 132 — 42 Average Inferior 102 to 122 32 to 92 to 102 l| to 2f Coarse Crossbred44/46 Super Average Inferior 82 to 62 to 5 to 71 6 22 to 12 to 32 2 Low Crossbred — 72 to 40/44 Super 9 Average Inferior 52 to 42 to 72 52 2 to 11 to 2 Hoggets— Extra Super half-bred .. 212 to 252 — 92 Halfbred > • • 17 to 182 7 to Fine .. .. 141 to 16 5 to 72 Medium 11 to 14 4 to 5 Coarse 8 . to 10 3 to 4 Lambs — Fine 46/48.. 102 to 111 52 to 72 Seedy and Inferior 72 1 to 52 to 4 Bellies and Pieces — Crossbred: Good to super 6 to 8 22 to 32 Low to medium 4 to 52 12 to 22 Halfbred: Bellies and 12 pieces .. 10 to — Crutehings— Medium to 62 2 to 21 Good 52 to Inferior to 2 to 12 seedy 32 to 4| Locks — 32 to 41 12 Crossbred .. A WAVE OF CONFIDENCE