FARM AND STATION NEWS.

Otago Daily Times, Issue 22356, 1 September 1934, Page 3

FARM AND STATION NEWS.

By Rusnctrs.

WOOL SALES, 1934-35

Wool itlu for the 1934-39 seaion have been arranged aa follow*: Nov. 87—Auckland.. F«b. 18—Napier. Dec. 3—Napier. Feb. 12—Wanganui. D»c. B—Wellington. Mar. X—Christchurch. Dec. 13—Christchurch. Mar. 4—lnvercargill. Dee. XT—Xlmiru. Mar, 9—Dunedin. Dec. 21—Dunedin. Mar. 18—Timaru Jan. I—Wellington. Mar. 80—Wellington. Jan. IS —Napier. Mar. 25 —Napier. Jan. XT—Wanganui. Mar. 29—Auckland. Jan. 22 —Auckland. Apr. I—' Wanpanul. Jan. 28 —Christchurch. Apr. 9—Christchurch. Feb. I—lnrerearglU.l—lnrerearglU. Apr. B—Dunedin. Job. o—Dunedin. Apr. IS—Wellington. Feb. IS—Wellington. . 1934-35 SHOW SEASON ROSTER OF DATES Agricultural and pastoral shows have been arranged aa follows for tba 1034-35 season:— October 24, 25.—Timaru. November I.—Ashburton. November 7.—Ktlso. November 7, 8. —Canterbury Metropolitan, at Christchurch. November 13.—Waimata. November 15, 16. —North Otago, at Oamaru. November 17.—Talari, at Outran*. November 20, 21.—Otago, at Tahuna Park. November 22, 23.—Clutha and Matau, at Balclutha. December I.—Tokomatriro Farmer*’ Club, at Milton. December 4, s.—Gore. December 7. —Wyndham. December 7.—Maniototo, at Kanfnrly. December 11, 12, 13.—Royal Agricultural Society’s Show at Invercargill. 1935. January 12.—Blueskin, at Waitatl. January 19.—Waikouaiti. January 25.—Palmerston and Waibemo County, at Palmerston. April 23.—Strath-Taieri, at Middlemareh. April 22.—Mackenzie County, at Fairlie.

Crutching Sal* (or Dunedia Consequent on the success which has attended sales of crutchings in northern centres it hu been decided to sold such a sale in Dunedin, the date being probably towards the end of September, The prices realised at these sales in the north nave exceeded anticipations. Most of the sales were completed this week, and at all of them rates were a good bit above the general level of values ruling at this time last year. Good halfbred crutchings at Sid and good crossbred at s£d are good selling, and with the better quality wools that are usually forthcoming in the south it is expected that values will more than hold their own at the local sale. While on the subject of woolselling it is encouraging to note that the wool market appears to have taken a definite turn for the better lately, the general level of prices being in excess of those ruling about a month ago. Demand for Clydesdales

A letter received in Dunedin this week states that the West Australian Government is at the present time in search of good Clydesdale stallions for distribution among breeders under the subsidy scheme recently launched by that State. The letter adds that Mr R. Carroll, who is acting as the Government’s purchasing officer in this respect, has already made several purchases of New Zealandbred colts in Melbourne at high prices, and that he is at the present time negotiating for further supplies of well-bred stallions from the Dominion. He bag also made several purchases of Victorian-bred stallions, but is reported as having said that with the exception of the progeny of one or two outstanding sires the general level of quality in New Zealand-bred stock was higher than could be found in the average Commonwealth-bred stock.

Market Prospects During the past four months the world has passed through an exceptionally quiet trading period m woollen goods. Tops, yarns, and fabrics have not ceased to sell during that time, but no definite buying movement has been experienced. Merchant* and retailers have been more or less conducting business on the stocks which they bought so freely from mid-1933 to early this year. Meantime, the public has worn woollen apparel as freely a* normally, and the winter season is approaching in Europe and Great Britain. Buyers in most quarters have been “ marking time/' pending the establishment of a revised level of raw material costs which would promote a basis of prices on which goods could be bought with a reasonable degree of safety. The firmness of rates for most wools in Brisbane has already stimulated confidence in Yorkshire, and should have similar effect elsewhere. Better strength in Continental orders would certainly bo welcome, as Europe bought 46 per cent, of the wool sold in the Commonwealth last season.

Business with Japan Indications are favourable for a large volume of wool purchasing by Japan in Australia this season. Competent authorities consider that the quantity of the staple bought- will probably be 100,000 balee greater than during the past selling year, provided prices keep within moderate limits. Internally Japanese consumption is increasing, and her exports of woollen goods are in addition expanding. She has successfully competed for trade in India, and is now shipping fabrics to China in bulky quantities, undercutting Yorkshire and other countries in regard to prices, and apparently satisfying would-be buyers in respect to too quality and fipish of her products. Chinese importers in Hongkong and other centres are stated to have placed orders for large shipments of Japanese textiles for the ensuing winter season in China. Prices for wool at the top point of last season were considered to be too high for profitable handling by millmen in Japan. Rates of exchange do not assist them to buy, as is the case with other important wool-using countries. The par value of the Japanese yen is 24d, but the current quotation is approximately 18d. The position of exchange adds about 25 per cent, to the cost of wool for Japan. The exchange rates, though encouraging her exports, therefore, increase the cost of wool which she consumes. If prices for the raw material advance too much, that rise, coupled with exchange, is liable to make goods too dear for the mas* of her people. That is why expectations of increased Japanese buying are contingent upon the price of wool keeping within a certain ranee. During the first four months of 1934 Japan imported 12.000,0001 b lees wool than during the similar months of 1933, and her export# of woollen fabric during the period were double the quantity of a year before. She is stated to be exporting woollen, worsted, and dress fabrics to New Zealand and Egypt. The Egyptian shipments include serges and fancy worsteds ranging in English currency from 2s to 4s a yard, 56 inches in width.

Slocks of Tops The total stocks of tops on the Continent at the close of June do not disclose a (treat general accumulation. The quantity on hand was 66,855,8001 b, being slightly lees than at June 30, 1033. Holdings of both merinos and crossbreds were a shade lower. The stocks varied considerably, however, in the various countries. In Germany the total was only 12,555,4001 b, being 8,987,0001 b less than a year before. That decline was due to the embargo on imports combined with a good consumption at the mills. France

Item of Interest to those engaged In agricultural and paetoral punroft* with a view to their publication In these columns, will be welcomed, Thhy should be addressed to “Busticus,” Otago Daily Time*, Dunedlfc

by way of contrast held 38,280,0001 b, an increase of 5,284,4001 b on the preceding year’s figures. The merinos on hand were 1,288,6001 b larger and the crossbred stocks showed a rise of 4,001,8001 b. Belgian holdings were 8,346,8001 b. being 1,060,4001 b less than at June, 1933. The merino stocks were appreciably less, but the crossbreds higher. Italy displayed an increase in the quantity on hand, the total being 7,073,0001 b, an increase of 3,471,0001 b, tbe greater part of the rise being in merinos. Individually the position of stocks was not as healthy as it was a* a whole, but despite the large quantity on hand in France that country has proved a fairly substantial buyer in Brisbane. She is reported to have sold fair weights of tops to Germany. Bulky business in that regard would considerably. decrease her holdings. She bought much reduced quantities of wool last season, and st mid-July the raw material stocks at the combing establishments were diminishing. Taking her stocks of wool into consideration with her holdings of tops, she is apparently not excessively supplied. The quietness of Italian competition for wool in Brisbane may be partly attributable to the quantities of tops on hand in that quaater, which are at least the highest seen for some years, and probably a record for the Italian industry.

Opening Brisbane Sales The general feeling in Melbourne wool trade circles (says the Australasian) is that the market in Brisbane at the opening sales of the season this week is better than was expected. It will be recalled that a few weeks ago many people were “ down in the mouth,” fearing that, because of the German import embargo, Italian restrictions, heavy losses suffered by mill owners in Yorkshire owing to the slump in wool values, credit difficulties, and additional depressing factors, there would be no demand at all for wool at the opening sales. The more timid clamoured for a postponement of the sales. Representations were made to the Commonwealth Government and the Commonwealth Bank with a view to arranging for advances to growers in the event of the market slump forcing the withdrawal of large quantities of wool to be held over till more favourable times. Fortunately, the wool authorities resisted the pressure to bring about a postponement of the sales, and the market has justified their stand. It is not suggested that the market is by any means strong. Wool is exceptionally cheap. Values in Brisbane are below the level of production costs. Germany and Italy are practically out of the reckoning as buyers at the moment. But the market is being tested. That is an important thing. The sales show that' there is a demand for wool, and the demand is fairly well distributed. Yorkshire, Japan, Australian mills, France, and Belgium competed. Most of the wool specialists in Melbourne were prepared for values somewhat lower than the rates realised, and they were pleased with the news received from Brisbane after the first sales were made, particularly with the nature of the competition.

The Other Side At the same time it is an extremely bad thing for the whole of Australia that wool is back to the values at the close of the 1932-33 season. There has been a steady fall since February. For a time the decline wag scarcely noticeable, but it became more pronounced in May, and after the May sales in Brisbane something of a panic developed. The Brisbane sales of this week are compared with the May sales in Brisbane. The market is down about 20 per cent, on May. A fall of 20 per cent, from high prices would be serious enough, but to appreciate the comparison with May adequately it is necessary to remind ourselves of the conditions in May. The wool values at the Brisbane sales of that month were 5 per cent, to 10 per cent, lower than they were at the previous series of sales, and in March-April considerable falls had been registered compared with earlier values. In fact, the May rates in Brisbane were the lowest of the whole season. It will be seen then that a 20 per cent, fall on these rates has sent wool down again into the ruinous prices which ruled during the depression years, 1929 to 1933. In short, values now are well below costs of production. Customers Repulsed

So the situation is full of difficulty. It is known, however, that a stimulus can be given to the wool market. We can sell all our wool at a higher price, say people familiar with conditions oversea. Germany and Italy want wool, Japan is insatiable for wool, but these customers we are not cultivating. Take it or leave it is the attitude of Australia to countries which seek to exchange goods for wool. The buyers of our principal product know their powers, and it would seem that Australia faces increasing problems in the sale of her wool and other products overseas, while she refuses good customers reasonable facilities to trade both. ways. There is nothing wrong with the demand for wool. If the growers of Australia are unable to dispose of their output at reasonable prices the manufacturers are in no way to blame. The trouble is local, and the blame may be laid at the door of the Australian Customs harriers against imports of manufactured goods. By th? high tariff our valued wool customers are repulsed, and it is hut natural for them to retaliate, if they can effectively.