OUR COMMERCIAL LETTER.

Otago Witness, Issue 2106, 5 July 1894, Page 24

OUR COMMERCIAL LETTER.

(From Our Own Correspondent )

London, May 25. I regret to say the position of the wool market does not improve, and no early improvement can be looked for, in the opinion of the best judges, unless consumers are encouraged by excessive cheapness to purchase for stock, or unless an early settlement of the tariff question in America induces increased demand from that quarter. A leading woolbroker tells me that with the exceptions of a very limited range, prices of Australian and Cape merinos are now lower than they were in 1886, and in fact probably lower than they have been at any time within the recollection of the present generation.

For one thing the trade I hear is rather seriously embarrassed with raw material purchased in the colonies on terms which have prevented its being unloaded to any advantage upon ultimate consumers, and the pressure of consigned produce is at its maximum, while manufacturers persist in restricting their purchases to their immediate day-to-day requirements. In these circumstances importers must either sell on most unsatisfactory conditions, or speculate for an improved demand in the later autumn, with the prospect of the weight of arrivals being increased by the additional burden of a considerable stock of " held-over " produce. It is thought that the real merits of the situation will only be properly tested when the actual consuming capacity of the industry is more thoroughly gauged than it can be said to have been hitherto.

It is thought that many circumstances have exercised an adverse influence on the business of the industrial districts, chief among these being the shrinkage of the export trade to America. On the other hand, the probabilities in reference to supply are not believed to indicate that this will assume very formidable dimensions. The Australasian increase for tbe season is not estimated at more than 70,000 bales, while from South Africa and Argentina no appreciable increase is expected. This is so far favourable to New Zealand growers. Hitherto the sales have been only fairly attended, and competition has not shown much briskness or confidence, especially on the part of French buyers. Good combing merino wools in grease, from 8d upward, hold their own on the basis of March values fairly well, but all other classes are quoted at about 5 to 10 per cent, cheaper. Bright - haired crossbred wools of the coarser grades and in light condition sell very nearly at previous rates, while the finer sorts and Bhabby parcels mark a decline of from Jd to i}d per lb. Frozen meat does not show much change. I hear that best qualities are scarce, but that the market is heavily overstocked with ordinary and inferior classes. Best New Zealand mutton was worth 4d to 4Jdper lb yesterday : second quality, 3id to 3|d do ; New Zealand lamb, 4Jd to sd.

Messrs W. Weddel and Co. tell me to-day that all colonial produce continues dull— wheat most of all, only 21s 6d per quarter being offered for cargoes on the coast. Oats are unchanged. Flax is just a shade better, ranging from £14 to £17, but there is no inquiry for future delivery. Preserved meats are very quiet. Tallow is tolerably firm at 23s to 27s 9d for mutton ; beef according to quality. Messrs Nelson Bros, inform me to-day that there is no improvement in values of New Zealand mutton, but there is more inquiry for really prime Canterbury sheep, for which 4Jd per lb can readily be obtained- carcases being about 581b of good quality. Ordinary Canterbury are worth 4d, and heavier sheep are slow of sale at 33d ; North Island sheep are worth 3§d to 3§d. The Maori's cargo is turning out well. New Zealand lambs have not yet "taken on well" owing to recent cold unseasonable weather. Best are worth 4|d to 4|d to-day ; second quality, 4£d to 4Jd ; inferior, 4d.