The Station.

Otago Witness, Issue 1478, 13 March 1880, Page 6

The Station.

LONDOSf PKODUCE MAKKKT. The New Zealand Loan and Mercantile Agency Company reports under date, London, 16th January, regarding wool as follows : — WOOL. A retrospect of the public sales of Colonial wool for the year 1879 brings to light the following features .: — (a) The very important part played by the foreign section of the trade, who purchased during 1879 95,000 bales in excess of their purchases during the preceding year. (6) That export buyers took advantage of the more moderate level of values which ruled throughout the first three series to operate freely, thereby permitting Home buyers to be the chief competitors in the fourth series at the higher rates then current. (c) That whereas the bygone year received from its predecessor a legacy of some 30,000 bales, the quantity ■ remaining on hand at the close of 1879, apart from the fresh arrivals for the February sales of 1880, did not probably exceed 3000 bales. (rf) Notwithstanding this satisfactory result, wherein there is not only evidence of the removal of the incubus of old stock which in previous years has been found to press heavily on the market, the meagre j competition from Home buyers during the first nine months of the year permitted such a decline in prices that the average value of the article in 1879 was fully 10 per cent, lower than it was in IS7S. (c) The marked contrast in values of Colonial coarse wools during the last quarter of the year with those of the previous portion derives additional significance from the fact that the advance lately established rests not on a speculative basis, but is supported by a coincident advance in the price of kindred domestic descriptions, and is accompanied by a tangible improvement in the demand for woollen materials, emanating at its outset from American requirements, but supplemented by orders from other centres of consumption. (f) The American demand for the raw material set in at a time when but little Colonial wool suited to the wants of the United States was available here, but recent Australian advices show that in the local markets American buyers have been free operators, and will, therefore, no doubt, pursue a similar course here during the first, and especially the second, serial auctions of the present year. Passing from these general considerations wo proceed to review briefly the four series of the past year. The first opened on 18th February and closed on 26th March, having occupied 32 sittings, the available arrivals and quantities catalogued being as follow :— Available Quantities Arrivals. Catalogued. New South Wales and Queensland .. 35,644 bales 35,632 bales Victoria . . . . 123,037 „ 121,456 „ South Australia- .. 48,894 „ 46,602 „ Western Australia — „ 9 » Tasmania .. .. 617 „ 874 „ New Zealand .. 11,369 „ 18,019 „ Cape of Good Hope .. 36,760 „ 39.848 „ Total . . . . 256,321 bales. 262,440 bales. From the former have to be deducted about 20,000 bales forwarded direct to the various centres of consumption, and in the latter were included about 30,000 bales held over from previous sales. About 180,000 bales were taken for export, and some 28,000 bales were carried over to the next series. The sales opened with a good attendance of Home and foreign buyers, the latter, more especially the German contingent, being by far the chief operators. While at the opening no departure from December, 1878, rates was apparent, ere the close was reached, in consequence of the apathy displayed, by Home buyers, fair to good washed Australian merino fleeces had declined Id to ljd per lb ; greasy sorts, according to qua ity, 3d to Id per lb ; washed and scoured crossbred wools Id to 2d per lb, and like wools in the grease Id per lb. Fine and superfine wools failed to command the attention which they did during the corresponding series of 1878, while medium to good combing merino sorts, in the grease, exhibited the minimum decline. At the reduction established the sales closed firmly, and foreign operators were generally understood to be well satisfied with their purchases. The result proved wholly the reverse to shippers, especially as the prices paid by them in the Australian markets at the opening of the shipping season in October, 1878, were unduly inflated. The second series was initiated on 6th May, and, after occupying 35 sittings, was concluded on 20th June. The available arrivals and quantities catalogued were as follows :— Available Quantities Arrivals. Catalogued. New South Wales and Queensland . . 61,723 bales 66,288 bales Victoria .. .. 98,393 „ 90,182 „ South Australia .. 37,417 „ 37,290 „ Western Australia .. 7,043 „ 6,635 „ Tasmania.. .. 8,377 „ 8,576 „ Now Zealand .. 71,442 „ 08,701 „ Cape of Good Hope .. 30,451 „ 29,423 „ Total . . 314,846 bales. 307,095 bales. Of the former about 18,500 bales were sent direct to the hands of manufacturers, and the latter were augmented by the 28,000 bales on hand at close of the preceding series. Foreign buyers again operated with freedom, taking some 185,000 bales of the aggregate offerings. At the close it was computed that about 30,000 bales had been reserved for future disposal. In consequence of the incidence of the Whitsuntide holidays, no sales were held between 27th May and 3rd June. The series was thus naturally divided into two periods — the first extending from 6th to 27th May, and the second from 3rd to 20th June, both inclusive. Throughout the former Belgian and German buyers, and throughout the latter French buyers, bought most freely. This position was shown by an improved demand in crossbred wools to the extent of $d to Id per lb on March rates during the first 10 days, which was not, however, maintained ; while, on the contrary, greasy combing merino wools, ranging from lOd to Is 2d, marked at the close Id per lb advance on the prices current during the first series. Fine descriptions sold somewhat better, but the recovery in these was less pronounced than in good combing merino sorts, free from fault, which realised before the termination quite Id per lb advance on opening rates. The finer grades of lambs' wool were more sought after, but coarse frowths were neglected. The continuance of a meagre emand from the home section of the trade elicited at this juncture special comment, more particularly in consequence of the low point to which domestic wools had fallen. Favourable indications of the revival in the trade of the United States were at this time also brought under notice, but the anticipations then held out, that at no distant date the improvement would be reflected here, did not receive ample confirmation for some months. The bad weather, which induced disastrous wheat harvests both in the United Kingdom and in France, exerted at this point a prejudicial influence on domestic trade, while the complaints qf French dealers that they could not sell their late purchases at remunerative rates were likewise frequent. Under these untoward influences the third series was ushered in on 12th August, all available arrivals to that date being admitted by the Wool Importers' Committee, although the wholesome restriction of closing the list on the day on which 300,000 bales had arrived might, as on previous occasions, have been adopted with good effect, This series was opened on 26th September, having thus occupied 40 sittings. The available arrivals and quantities catalogued are given in the following tabulated statement :— Available Quantities Arrivals. Catalogued. New South Walos and Queensland .. 73,651 balos 74,565 bales Victoria .. .. 75,878 „ 78,627 „ South Australia .. 19,617 „ 20,629 „ Western Australia . . 1,273 „ 1,779 „ Tasmania .. .. 13,462 „ 14,128 „ New Zealand .. 91,063 „ 94,463 „ Cape of Good Hope .. 55.139 „ 41,192 „ Total.. .. 333,683 bales. 325,383 bales. After the deduction from the former of some 22,500 bales Australasian and Cape wools forwarded direct to the Continent and the Home manufacturing districts, it was computed that, allowance being made for held over parcels, about 341,000 bales were available for disposal, a quantity quite in excess of the then existing trade requirements. This was proved by the fact that, notwithstanding the low rates paid, 40,000 bales available for disposal did not find buyers. The export demand was, however, sufficient to absorb 180,000 I bales, In thus continuing to extend their purchases considerable wisdom was displayed by exporters,

who quite realised the intrinsic cheapness of the staple, and despite the apathy displayed by the Home trade, continued to •purchase freely. Had the latter been equally alive to their own "interests, they, too, might have gone fully into stock on terms much more reasonable than those which they were compelled to accept during the closing three months of the year. This remark obtains additional significance if regard be paid to the fact that during this series wool suited to Home wants touched the lowest points of the year, while during the succeeding sales their maximum point was attained. As might be naturally expected, fluctuations in value were from day to day witnessed throughout the currency of the series, but the prices ruling at its close showed a decline on the like rates of the second series of Id to 2d per lb on washed and scoured merino wools ; of Ad to Id per lb on medium and inferior Efreasy wools"; and of Id to 2d in the case of crossbred and halfbred wools, according to quality and condition. On good light greasy combing wools, whether of the merino or crossbred type, no quotable change was recorded. While these figures represented approximately the reduction in values submitted to between the two periods under review, it must not be forgotten that faulty wools and lambs' were frequently unsaleable oven at a greater reduction. This remark is particularly applicable to coarse descriptions. Immediately after the conclusion of the third series it became apparent that Home buyers required to replenish stocks, and they accordingly throughout October appeared in the market in quest of parcels suited to their wants. By their instrumentality chiefly, about 6000 bales changed hands by private treaty in anticipation of the commencement of the fourth series, the prices paid showing an advance of id to lid per lb on September closing rates. A decidedly upward movement was simultaneously exhibited in domestic wool, and an advance of 2d to 2}d per lb from its lowest point was accordingly secured. The fourth series, therefore, opened under very favourable auspices on 18th November, and, with the interruption of one day on account of a fog, was concluded in 16 sittings, on 6th December. The attendance for the time of year was exceptionally good, and the demand on the part of the Home trade in marked contrast to the languor displayed by them in the preceding sales of the year. The available arrivals and quantities catalogued are as follow :— Available Quantities Arrivals. Catalogued. New South Wales and Queensland .. 16,208 bales 27,199 bales Victoria .. .. 9,375 „ 29,006 „ South Australia .. 7,145 „ 9,922 „ Western Australia .. 88 „ 97 „ Tasmania .. .. 1,561 „ 2,107 „ New Zealand .. 10,451 „ 19,131 „ Cape of Good Hope .. 48,358 „ 44,061 „ Total.. .. 93,186 bales, 131,523 bales. Of the former about 8400 bales, chiefly Cape sorts, were estimated to have gone direct into consumption, and it was computed that the volume of the latter was increased by about 45,000 bales, consisting of heldover, twice-offered, and second-hand (parcels, many of which found a place in the catalogues on account of the desire on the part of the holders to realise before the close of the year. About 45,000 bales were passed for export against 85,000 bales at the corresponding sales of 1878. So great was the support given throughout that only about 3000 bales remained uncleared at the close, a portion of which has since found buyers by private treaty at prices quite up to the parity of Novomber rates. While it is significant to notice that notwithstanding the large quantity of second-hand and twiceoffered wools, so effectual a clearance was made of available supplies that the catalogues were not unfrcquently overweighted with such description ; the result being an occasional uncertainty in the biddings and greater discrimination on the part of buyers in making their selection. Subject to these irregularities in the fourth series, the following rise may be recorded as having been established :— Per lb. On greasy merino wool . . . . Id Washed and scoured merino wool . . 1W to 2d Greasy coarse wool . . . . lAd to 3d Washed and scoured coarse wool . . 2}d to 3\d Greasy merino clothing wool . . nil to Id Washed and scoured merino clothing wool . . . . . . £d to l^d Lambs' wool, according to quality and condition .. .. .. ftijtoljd. Some parcels of the new Australian clip, chiefly those from South Australia, reached port in time for inclusion in the fourth series. These met a good market, being taken for tentative purposes at prices which showed an advance either on those current 12 months previously, or on those paid in February, 1879. In the following comparative tabulated statements are given the aggregates of the imports and quantities catalogued in public sales of Colonial wool during the past five years :—

Of the former about 70,000 bales were sent direct into consumption during 1879, against 53,000 bales during 1878 and 56,000 bales during 1877. Making allowance for these deductions, it would appear from _ the foregoing statements that the demand exhibited at the public sales has proved sufficient to absorb the increased supplies directed to this centre during the past year. This fact, taken in conjunction with the very small apparent stock of wool not yet finally passed into consumption, induces the belief that the wool trade of the present year will start under better auspices than for some years previously, and will not therefore be subjected to the low level of values so markedly apparent during 1879. The date of the commencement of the first series of the year 1880 has not yet been fixed. In the meantime there is a moderate demand for wool on the part of manufacturers, but at present holders of such portions of the new clip as have arrived are asking- prices which are generally beyond the ideas of buyers. Although there is but little immediate inquiry from the Continent, it is believed that stocks there are within a small compass, and are likely to be still further reduced as the improvement in trade develops. At an auction hold in Berlin on the 13th instant, 1963 bales of Cape wool were offered, and all sold at prices ruling up to Id per lb above the closing rates of the last London sales. At the Havre River Plate wool sales on the 14th instant, IS4O bales wore offered and 1060 bales sold at id to 3d per lb advance on November rates. Arrivals for the first series are as follow :— New South Wales and Queensland .. 3,689* Victoria .. „ ># 9091 South Australia „ _ _ x 414 Western Australia „ [\ nil Tasmania .. 1# [' 236 New Zealand . . . . [[ 4^07 Cape of Good Hope „ \\ 24,694 Total „ „ _ „ 43,231 Rof erring to those figures, wo may remark that the total quantity of wool to be comprised in the series will be sensibly affected by the purchases made in the Australasian and Capo Colonies for American account, which, Instead of coining to this market aa usual, will now be directed to the United States,

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