LONDON WOOL SALES

Otago Witness, Issue 2728, 27 June 1906, Page 6

LONDON WOOL SALES

(From Oub Special Correspondent.) LOXDOX, May 11, 1906. I OPENING OF THE THIED SERIES. LOTH MERINOS AND CROSSBREDS AGAIN ADVANCE.

These are stirring times in the wool trade, and looked at from any standpoint we are faced with conditions tho like of v.hich we have not seen for over 30 years. London is looked upon as focussing the real situation as obtains m manufacturing centres, and th<* large contingent which al*ay6 assembles is bound to voice condiTJons as they actually exist when viewed from the consumer's standpoint. Great interest attached to tho opening due to what had taken place during the interval. One cannot have such lik-dy markets as we have seen since this year came in without the raw material being affected at such a centre as London, and this woek the greatest interest has been centred in Coleman street because of what has recently trans- , pired I London wool sales may be said to exert a mighty influent upon the trade, not simply from the md.iufacturer'6 standpoint, but "also very mateiiallv that of the grower-'. Naturally with tho prices being »o high, e\eryone is asking the question, Are they on a safe basis? and London to [ a large extent is looked upon to answer the j query. In the past, between January and the end of May. owing to the world's new clip having to be financed, the situation is often a little shaky, and it was generally felt that such a condition was bound to obtain this year in view of Australasia, turning out an increase of 250,000 bales Such fears have not been realised, nor arc they likely to be. Money is plentiful, and with such record sales as we have had prices have all advanced. Just as showing how prices have moved since this year came in. I ask the reader'? attention to the —

A STRONG OPENING. Before a very full room, every section of the trade being fully represented, the third ferie© began in real good earnest last Tuesday. This undoubtedly is going to be a crossbred series, something like. 100,000 bales being available out of 157,000 to be sold. .The opening day's catalogues comprised three-fourths of New Zealand crossbreds, but the demand proved to be quite adequate to the supply. From the very start there was a good toue, and it was very evident that wool was wanted. A little disappointment was felt over the small offerings of merinos, but it was felt that in a day or two these would both improve in quantity and character. A large number went round! valuing, and buyers worked with a will. When the sal© came on there waa nothing of that hesitancy which is sometimes seen on an opening day, and everything sold with, conspicuous freedom. The home trade led the van for every quality, their efforts being ably seconded by Germany in particular. America took som© nice parcels, and so did France, but the bulk of the buying was done by Yorkshire representatives, the crossbreds being most suitable. The final lesults of the first sitting, when compared with the cloee of the March series, were as follows: — Merinos 3?ar to 5 per cent, dealer. Fme crossbreds Par to 5 per cent, dearer. Medium crossbreds 5 per cent, dearei. Coarse crosabreds sto 7J per cent, dearer. Tfa« above advance ju6t about brings

prices on to the lev-el established during the interval in Bradford, and it is possible that before the end ye may see a further hardening tendency, though wool is dear enough. General satisfaction was felt at the course of events, and taking things all iound a very satisfactory opening was conceded by every one. Since the opening night the sales have progressed in a first-class way, and the full opening advance has been maintained. \\ ith a better selection of merinos the inquiry has broadened, and £d more than last series is now being frequently paid for the b&st grease combing and scoureds. I have no doubt that this series is going to be a testing time for fine wools in view of tho large purchases made in Australia, by ' France in particular. Some seem to think that the Continent has bitten off in the colonies quite as much as it i 3 aWe to chew, and that it will take them all their time to deal successfully with their pur- ■ chases. Personally I think that everything will be dealt with quite easily, only it wants time. Money is plentiful, though the trouble with the Turkieh Sultan might possibly end in rupture, which may affect the course of wool values. Given no political complications, and we are likely to see- a , cintinuance of to-day's rates. THE OUTLOOK. Messrs H. Dawson and Co., writing about the outlook, say that "the past interval has not been marked by any spurt or distinctively strong movement. The market has been singularly free from excitement, and at one point there was a decided pause in the demand. The Jevel established at > the March serios wa3 high, and in the j opinion of most people dangerously high. Yet the strength of the demand, and tho abnormal consumption is such that a further hardening of values has to be re- ' ported." i 'The situation is not only interesting, but ■ critical, especially when tho prospects of the next few months are considered. Demand shows no sign of abatement, and yet the supplies which will be available for the present year's consumption appear dis- ' proportionately small. "Mills are working at full strength, but stocks are kept at a very low ebb and show no accumulation ; indeed, the main feature of the industry at the moment is the difficulty of making punctual deliveries both in i tops and yarns. "U.S.A support is always enigmatical. Tho market there is quiet at rhe moment, but the woreted industry is sound, and it seems probable that we shall find a steady support given by U.S.A. buyers to crossbreds. "In merinos everybody is keeping in view the fact that a further large increase in the production is assured from the next clip, and a hand-to-mouth policy is general ; but it becomes increasingly evident that a tight corner has to be passed before relief can come — that is, under the existing rate of consumption. "In fact, everything points to the continuance of a difficult market for the buyer during the next few months.' 1 Sold by Messrs Charles Palme and Co., May 8 — ' .' MilM ever Redcastle: Greasy: 11 bales Ist crossbred combing H 14d, 17 do E 15d, 22 do 14d, 12 do 13Jd, 23 do 13d, 4 2nd do 13d, 47 do. 13d, 15 Ist Leicester do 13d, 21 2nd do 12Jd, 5 Ist crossbred pieces 12d, 14 2nd do lid, -1 do lOd. These were decent i wools, nice quality, well grown, sound, ahafty, and in good condition. j Sold by Messrs Jacomb, Son, and Co., same ' day: — Aclsmd: Greasy: 10 bales Ist combing E 12} d, 19 do "W 12jjd, 16 2nd do 12Jd, 28 Ist clothing E 12id, 82 do W 12id, 32 do 12d, 31 combiug 12d, 9 Ist pieces 12^, 23 do combing halfbred 15d, 26 2nd do 14|d, -41 do 14d, 11 Ist combing three-quarterbred 134 d, 10 2nd do 13id, 9 do 12id, 4 crossbred lljd, 12 Ist pieces halfbred 13Jd. Nice, useful wools, showing good quality, were sound, and, in first-class order. G in square: Greasy: 6 Ist combing halfbred 15d. 37 Ist do crossbred 14Jd, 14 2nd do 13d, 15 do H 14<d, 5 2nd do 14d, 3 do 12JcL 8 Leicester 12* d, 5 crossbred pieces' lid, 5 do bellies 9id, 2 do locks 7Jd. One ot two lots went to America, the wools showing first-class character, and an excellent growth throughout Sold by Messrs Dv Croz, Doxat, and Co., May 9: — Balmoral : 7 greasy Ist combing 13Jd, 6 2nd do Ud, Q Ist clothing 12id, fi do pieces 12£ d. Scoured: 6 combing 23d, 9 pieces' 22d, 25 do 21 Jd, 19 B do 21 Id. 10 locks 16* d, 3 halfbred combing 20d, 8 halfbred Ist pieces 20Jd, 2 crossbred B do 16>d, 3 halfbred locks 15Jd. These were all right enough, the wool commanding very full competition. Morveu Hills: Greasy: 73 Ist combing Hid, 22 do lid, 39 2nd do IOJd, 13 do IOJd, i> Ist do B 12d, 87 Ist clothing IOJd, 59 neckß lid, 14 black withdrawn, 3 halfbred Ist combing 13Jd. The merinos were very fine, but somewhat fatty. They were wanted "by a large number, -and sold most readily. - Sold by Messrs Thomas and- Cook, isasott' day : — <. Otairi: Greasy: 42 Bales super BaLfbred .- 15 d, 46 super crossbred 15d» 45 do Hid, 65 do 13id, 64 do 13d, 245 do 13d, 106 do 12Jd, 3a Ist do pieces 10a, 47 do belly, do 9Jd. No fault can be found with these, the wools being exceedingly well grown, sound, and light. [ Woodbank : Tin square : Greasy : 15 super ■combing 13d, 8 do 12£ d, 2 Ist lljd, 2 bellies j IOJd, 4 Ist halfbred lojd, 16 2nd do 15d, 10 Ist crossbred lod, 22 do 14Jd, 2 do 14d, 4 tod do 14d, 7 do 13d, 5 Ist Lester 13d, 5 Ist halfbred pieces 12d, 4 do bellies llid. These were Al. and certainly moat meritorious.

.\J)OX IX THE LIGHT OF BRAD FORD.

All eyes are now turned in the direction of Coleman street, and the operations in that quarter are going to play an important part in influencing such centres a* Bradford. Since the March scries home wool markets have boen of a very lively character, and all along the line advances have taken place. Tho opening results have confirmed current prices in manufacturing centres, and it is now seen how healthy is the situation, and how strong the demand for the raw material. The last two market days has seen done a fair ■ amount of business. Risers evidently being disposed to cover all their needs in view . of the absolute s certainty that wool would be dearer. It is fully rocog'nised that crcssbreds are now at a very dangerous alcitude. but the majority fail to see where any relief is coming from, consequently wool is being taken with a good deal of confidence. Even those who havo kept out of the market in the hope of things falling have at - last relinquished their position, it being 1 generally conceded that so long as consumption is maintained at the present rate prices cannot fall. Topmakers still assert that the top notch has not yet been reached, and as present stocks get less a furthor hardening is inevitable. It is certain that to-day's consumption is larger than is generally supposed, or else prices are exceedingly dangerous, but I am inclined to think that the consumptive needs of the world have this last 12 months so increased that, notwithstanding near hand 500,000 bales increase from Australasia, in two years, every ounce of .material will be wanted. A good 40's top is still wanted, and saleable at 18£ d, and if America buys at all freely this series we can soon see a much higher level made, continues bo be done a big export trade, and this is shifting some stuff both of tops; arid yarns. There is no doubt that the ultimate "buyer is feeling the, present situation, but so long as he has a call for the finished fabric and can make a profit he is going to do the business. When the present high values are spread over the million, the increased purchasing power, w&ich the ma*i jority have is' a factor well able to dear.' comfortably with th» unique situation. Merinos are steady and firm, it being poaEiblo to etill pick up a super 60's top -at Zs 4d. London going dearer puts that market above Bradford quotations. . Mohair has had an active week, business has beendone at practically the highest point of the season, 16£ d being made for Cape firsts. Taking all thing 3in general the market is sound and very healthy, trade being very good indeed.

Price on Description. Jan- 1. d. 70's Colonial tops 27 64's Colonial tops 26 60's Colonial tops, super .. 25 56's Colonial tops 21} 50's Colonial tops 20J 46's Colonial tops li 40's Colonial tops 15| 36' s Colonial toDS 15 Trice on May 8 <j. 30 29 28i 25 23 20 18i 17*