WOOL PRICES

Otago Daily Times, Issue 23370, 9 December 1937, Page 12

WOOL PRICES

WELLINGTON SALE A SLIGHT IMPROVEMENT RISE OF HALFPENNY TO PENNY KEEN CONTINENTAL DEMAND (Per United Press Association' WELLINGTON, Dec. 8. At the first Wellington wool gale of the 1937-38 season to-day there was a small but definite improvement in prices compared with those which ruled at the opening sale at Auckland on November 27 and that at Napier last Friday. To-day’s market showed an advance of a halfpenny per lb for average sorts and up to one penny for good wools on those of the Napier sale, which was, roughly, a halfpenny better than Auckland. The feature of the sale was the remarkable activity of Continental buyers, notably France and Germany, who bought heavily and generally dominated the market. A year ago Japan was the most prominent buyer, and forced prices up, but to-day little if any wool was bought on Japanese account. Bradford operated cautiously and sparingly. Some good orders for super wools were filled on Canadian account. New Zealand mills were active, and bought wools suited to their requirements. A Small Offering For the first sale at Wellington the offering was unusually small. The limit fixed by the, New Zealand Wool Committee was 30,000 bales, a quantity that was disposed of easily at last year’s December sale. The fall in wool prices during the past sijX months and the disappointing opening to the season at Auckland, however, had weighed heavily on the minds of growers, with the result that the quantity catalogued for to-day’s auction was only 20.500 bales. Eleventh hour withdrawals further reduced this quantity to about 19,500 bales, of which about 88 per cent, was sold at auction. -The wool offered to-day was not up to the standard of the Wellington: December offerings, much of it being light in condition and poorly grown, showing the effects of the hard winter and the dry conditions in the spring. Very little lambs’ wool was offered and most of the hogget wools showed a lack of condition.

There was a completely full bench of buyers, representative of every section of the trade. From the start bidding was vigorous at lower limits, and the sale proceeded at a fast pace. Owing to the small offering, buying went right through without a break. The main catalogues were disposed of in four and a-half hours, only the star lots remaining to be dealt with at 1.30 p.m. The Ccntinent Active Competition was very keen and bidding was frequently excited. Continental buyers were outstanding. and a much larger quantity was taken on German behalf, Bradford gave fairly good support, but her buying was somewhat restrained As far as could be learned little if any wool was bought on Japanese account. The United States was not in, but Canada bought well on the super wools. Local mills came in for anything suitable for their needs. s The majority of the growers represented in the catalogues met the market, several brokers reporting clearances of from 92 to 93 per cent. In other cases growers had placed unduly high reserves on their offerings, with the result that the passings were heavier. Of the total offering approximately 88 per cent, was cleared at auction, with the probability of further clearances of the passed in lots by private treaty. 2rdr isfl-ngq The Range of Prices The official range of prices was as follows; Merino 64/70, 60/64 Super, none. Average, 12Jd to 14d. Inferior, 11.fd to 121 d. Fine halfbred 53/58 ’ Extra super, none. Super, 131 d to 15Jd. Average, Hid to 13d. , Inferior, 9d to 1 Lid. Medium halfbred 50/56 — Extra super, none. Super, 12td to 133 d, Average, lid to 12 id. Inferior, 93d to 1 let. Extra fine crossbred 48 / 50— Super, 12d to 133 d. Average. 10£d to !2d. Inferior, 9d to !o’,d. Fine crossbred 46/48 Super, Hid to 12" d. Average, 10c! to lid. Inferior. 9d to 9;Jd. Medium crossbred 44'46 Super, Hid to 13d. Average. 10d to lIId. Inferior, BJd to 9M. Coarse crossbred 40/44 Super, lid to 12Jd. Average, lOd to 10vd. Inferior, B'd to 9',d. Low crossbred 36/40 Super, none. Average, 10d to 103 d. Inferior, none. Hoggets—--48/50. lOd to 13id. Fine 46/48. lOd to 121 d. Medium 44/46, 93d to 11,Id. Coarse 40/44. none, Low 36/40, none. Lambs — Down 50/56. 12d. Fine 44/50, 103 d to 143 d. Medium 40/44, none. Seedy and inferior 63d to lOd. Bellies and pieces— Merino good to super, 9d to lOd. Merino low to medium, none. Halfbred good to super, 9ld to lOd Halfbred low to medium. 6d to 9d. Crossbred good to super, B£d to IOJd. Crossbred low to medium. 6d to B'd. Crutch ings— Medium to good. 7.1 d to 10\d. Inferior and seedy 4,3 d to 7d. Locks— Merino, s.|cl to 6id. Fa’fbred, 5d to 6id. Crossbred, 4id to 7Jd. NEXT AUCKLAND SALE CATALOGUE ALREADY FILLED ACCUMULATION OF PASSINGS (Special to Daily Times) AUCKLAND, Dec. 8. Although the second Auckland wool sale will not be held until January 24, the catalogue of 30,000 bales has already been filled. One broker said that this was the earliest closing date in his memory. Brokers and their staffs have been fully occupied ever since the first sale in an effort to keep abreast of supplies, and the congestion caused by the waterfront strike has made matters worse. . The Auckland brokers do not m-

tend to apply for an extension of the limit of 30,000 bales, which is 3000 bales more than at the corresponding auction last year. Consequently, all wool which is now coming into store will be held over until the third sale in Auckland on March 26. There is no possibility of the wool being offered at southern auctions, as all centres are experiencing the same difficulties. There is no limit for the March sale, and it is expected that it will be the heaviest for many years. The brokers do not want an extension of the; limit for the coming sale, as they will be satisfied if they can clear the largest amount to be offered. Stocks Held Over The unusually early closing date of the January sale is due to the fact that about 10,000 bales were held out of the first auction, the catalogue for which also closed early In addition to this the accumula tion of woo! passings at the first sale have been estimated at about 50 per cent. Including private sales negotiated after the auction, this means that about 12,000 bales out of tho catalogue of 25,000 bales were held in store for the January fixture, leaving only about 8000 bales to complete the catalogue. The recent fine weather has greatly stimulated shearing, and this additional quantity did not take long to reach the stores. It is now feared that, unless growers are more prepared to meet the market than was the case at the November sale, the March fixture will become unwieldy The wool already in store for the next auction shows little alteration in quality from that offered last month, although some of the clips which have come in since then are slightly heavier. Artificial Fibres " It appears that the growers will have to reconcile themselves to the lower prices ruling,” said Mr B. J. Marquet, chairman of the Auckland Woolbrokers’ Association. “In my opinion the main obstacle is the ever-increasing competition which is coming from artificial fibres, When wool prices soar as they did last season, there is a natural tendency to use more of these fibres It is a significant fact that the equivalent of 6,000,000 bales of wool is produced in artificial fibres annually. Germany, for instance, insists upon a 50 per cent, mixture.”