THE AUSTRALASIAN WOOL MARKETS.

Otago Witness, Issue 2785, 31 July 1907, Page 20

THE AUSTRALASIAN WOOL MARKETS.

A REVIEW OF THE POSITION. In the July number of DaJgety's Review! appears the annual review of the colonial wool compaign, 1906-07. The focussing, as it were, of information which though' not new in itself assumes a. new aspect is of great value, and enables the intelligent reader to survey the prospects and possibilities of the future., Space will not permit of giving more than an outline of the very exhaustive review of the post season. Australia-, and New Zealand hare experienced another bounteous year, during whioli there has been a truly marvellous increase in production. In three years the flocks have increased by nearly 28,000.000 head, and the output of wool, even tibough the -sheep numbers are 16,500,000 less than iot 1894-5 season, has^estabiwhed a record—exceeding for the first time in the history o£ Australasia 2,000,000 bales. The actual increase for the year has been 220,733 bake, and as compared with three years ago.iho increase in the output amounts to oven 700,000 bales. Not only has the past clip been a record! one, but the prices realised have been aft the highest all round average which faai obtained during the past quarter of a. century. Producers are to be congratulated 1 , too, on account of the turn of seasons in their favour, and because they have of late years so improved bhe wool-producing capabilities of their flocks. It is only right to remark, however, that whereas, gauged bji the number of bales, the past clip surpasses all predecessors, it is doubtful if .he actual quantity of wool exceeds the outputs of either 1894-5 or 1895-6, for the simple reason that the bales are made appreciablylighter than wae formerly jibe custom. However, ther©/is no gainsayihg the facfc that the pastoraliste of Australia- and NewZealand have by the scientific culling o£ their sheep and selection of heavier cutting rams added to the wooUproduring oapabilities of their flocks; and though muctt has been written to the contrary, it is doubtful whether the wool produced today is not as useful as that grown a decade or two ago. It may not be so silkyi a texture, but it is fine enough for Practical purposes, and the net returns per head are undoubtedly better than they were during the period preceding the great drought. If buyers wish flockmasters to revert to the old style of sheep fproducmg a comparatively small fleece light m tna grease and of silky quality) they must certainly pay mote in proportion for «octt wool than they have been in the babit ofi doing of late years. The wonderfully prosperous condition of Australasia to-day w almost entirely due to the wealth denvecl from pastoral and farming pursuits, primary products of which have during tho Ss7year yielded close on £60,000,000, tha sheep industry being responsible for some £+0,000,000. Presuming that the portionj of the clip which has been sent direct to. London for sale has realised the same average per bale net in Australasia, as was obtained for the larger quantity sold m the colonial markets-viz., £1* 3s lid .the clip of 2,090,188 bales will Save brought in £30,239,794. „ ___ n-zn nnr AustmW has been p»d^W*»J S£ L° r IB fc thatt

in 190*-5, £16,500,000 more than In 1903-4, and just about double the amount obtained 20 years ago. It has been stated that this great increase in, wealth goes practically into the hands of a few ; but such is nos the case. Thousands of producers who formerly d»voted their land to cereal growing have found that sheep are a very profitable accessory, and have been thereby led to adopt mixed farming, to the great advantage of themselves and the States in which they are located. One of the most noticeable features of the industry is that whereas before the drought 120 millions of sheep were shorn, yielding 1,959~,811 bales, last year 103 million odd sheep produced 2,130,000 bales, showing that 12 or 13 years ago it took the fleeces and skirtings from say 61 sheep to fill a bale, while last year the wool from ♦94 sheep did co. Following i 6 a comparative statement of the number of sheep per b*le and the number of bales per 1000 sheep over a. number of years: — No. of No. of sheep shorn bales per Tear. per bale. 1000 sheep. 1896-7 .. t* .. .. 59.65 .. 16.75 1897-8 .. .., .. .. 60.08 .. 16.64 1888-9 .. .„ ..' « 59.61 .. 16.77 1899-1900 57.95 .. 17.25 1900-1901 .„ -, -..- 54.91 .. 18.21 1901-2 .. jji .. „ 55.47 .., 18.21 1902-3 - .. 51.20 .. 19.53 1903-4 55.41 .. 18.04 1004-5 •.* .. „ .. 52.21 „„ 19.15 3905-6 ««.... -S7- 50.19 .. 19.92 ISO 6-7 - 49.5 .. 20.2 The buyers of the 1906-7 clip have had * satisfactory season. They bought a Rood clip of wool at prices which, though high, should chow some profit to all through whoso hands it passes. The margin of profit has certainly been email, yet the increased turnover should in a large measure compensate for this. Pre-eminently to-day's prices, although at the highest average level reached for 25 years, are resting upon a real solid consumptive basis. Users have absolutely no old stocks to fall back upon. The steadily advancing prices of the past four years 1 have been built up entirely upon a steadilyincreaeing consumptive demand, the South African and Russo-Japanese wars having been responsible for shifting every ounce of available surplus stock of crossbred wool. At. the best, however, only one factor in prices can be measured — namely, the supplies of any given commodity. The allunportant question of demand can never be more than a matter of surmise. Nothing can more clearly show the actual pressing requirements of consumers than the maintenance of prices in the face of the dear money market and considerable unrest in i financial circles. Examining the contributing causes of the present demand it is found that Ihe population of the civilised world has increased enormously of late, wfliile the gold output has more than doubled itself in 10 yeare. Wages have increased considerably, and the purchasing ' power of the masses is greater than ever before. Everything has increased in value —metals, food supplies, all textiles, — and it is not surprising therefore that wool, the beet of all substances for the clothing of- mankind, should, have participated in th© general advance. Europe wants wool, America cannot evp»lv her own wants, while the comparatively new demand from Eastern nations is one of the most gratifying features of tie outlook. _ ' As yet no reasons are apparent why with increased demand and high prices there should be any difficulty with the coming clip. Admitting that the future of the wool market is always involved in m7«;t«»ry, the weight of evidence goes to prove that wool-growing should be a • profitable industry for some years to come. ▲ table which is given, showing the average -*lue per lb in London for wool from various countries, demonstrates the superiorfty +1 Australasian wool and the great advance i» ♦alues which has taken place in wool prices generally. Th« oours* *f the local wool market is dealt with ait some length, and also the demand and distribution, the character of the clip, its preparation, and the weather and other condition in the various States. PRODUCTION. Oversea shipments from Australasia for the 12 months ending June 30, 1907, total 2,090,231 bales, an in««ase of 220,776 bales, as compared with that* of the previous year, to which must b*> »dded 40,000 bales mod by manufacturers in Australia and New Zealand. Considerable quantities of wool grown in one State «*» shipped f-om another, but we give the act production (for export) as closely as it aan be adjusted from the Customs returns, aft under: — 1906-f 1905-6. Bales. Bales. New South Wales .. 956,500 816,000 Viotoria 268,501 .. 267,500 Queensland .. .. 204,000 .. 176 000 South Australia..- .. 158,500 M H9.000 West Australia .. .. 42,000 & 42 - 50 < ) Tasmania .. , r .- 33,500 - 33,500 Jfew Zealand -. .. 427,000 415,000 Total .. .. 2,090,000 1,869,500 AUSTRALASIAN SHEEP RETURNS. Sheep numbers as at the olosu of the year, compared with 12 months previously, show a net inorease of 9,711,782 he6d. The totals in Aushalaeia now reach 103^548,330, and for the first time since 1897 (1* Tears *go) exceed 100,000,000. The returns from the various States

which we give herewith are to the latest available dates: — States. 1906. 1905. Increase. New South Wales 44,132,421 39,494,207 4,638,214 Victoria 12,937,440 11,455,115 1,482,325 Queensland .. 14,886,438 12,535,2312,351,207 South Australia 6,700,000 6,524,300 175,700 West Australia.. 3,200,000 3,140,360 59,640 Tasmania .. .. 1,583,560 1,556,460 27,100 Australian States 83,489,859 74,705,673 8,734,186 New Zealand .. 20,108,471 19,130,875 977,596 Tl. Australasia 103,548,330 93,836,548 9,711,782 The increases in flocks have taken place despite the fact that the slaughterings for home consumption and export show an increase of dose upon 1,000,000 head for the year, amounting to nearly 16,000.-000 head in all. THE WORLD'S FLOCKS. Dealing with the outlook regarding the world's supply of wool, it is advisable to note latest available figures relating to the number of 'sheep, from a perusal of which it will be seen that the total decrease in numbers is considerable, even I though the flocks of Australasia, have steadily increased for three yeare . — Number of Sheep at End of 1895 a3 Compared with Latest Dates. — 1895. 1905. North America .. .. 51,223,983 50,631,619 South America, .. .. 102,847,134 99,998,573 Europe (including Asiatic Russia) 198,194,214 186,871,991 Asia (except China and Asiatic Russia) .. .. 21,957,752 19,043,711 Africa 31,890,052 27,452,722 Australasia. .. .. 120,770,000 103,000,000 Totals sa .. .. 526,867,135 486.998,556 Net decrease just under 40,000,000. Note. — Figures for North America and Australasia are to year ending. 31st D-sc, 1906. The most* noticeable falling off in numbers has taken place in Germany, the expansion of agriculture, together with a greater demand for meat, being responsible :—: — — Number of Sheep in Germany.— 1860 28,016,800 1883 .„ -« .» „„ .. 19,189,700 1897 .- .- .. ... .. 10,866,800 1900 .. v 7 9,602,500 This is an ahrming state of affairs which should surely result in the removal of the artificial wall which prevents the importation of meat into that thickly-populated country, and hinders the opening up of another splendid market for the surplus meats of Australasia The flocks of Cape Colony, Orange River Colony, India, France, Gre»t Biitain, Ireland, Russia, Spain, and Norway are all decreasing; the Argentina and Uruguay are barely holding their own, while in Australasia they are increasing, but the expansion ~of the frozen meat industry, together with local consumption, will prevent numbers reaching those of 1895 for many years to come. The only other country to chow an increase is Algeria. SUMMARY OP STATISTICS. The clip dealt with in Australasian markets last year was greater than ever. Out of a total production of 2,130,594- bales, no less than 1,537,798 bales were realised upon , in the colonial market. j The average value per bale of all the wool cold in Australasia during the past 12 months was £14 3s lid, against £13 10s 3d ! for the previous year — a rise of 13s Bd, or \ 5.05 per cent. I For the 12 months ending June 30, 1907, 1,537,798 bales 6old realised in Australasia i £21,835,131; for Ihe same period to Juno 30. 1906, 1,354,865 bales grossed £18,304,012 ; r— lncrease for the year, £3,531.119. I The total exportable production of Australasia has amounted to 2,090,188 bales, which, if taken at £14 3s lid per bale, shows the value to be £29,671,961. But to the above must be added 40,000 bales which have been manufactured into olotb, etc., in these colonies — say, £567,833 worth. Thus | the total production is estimated to have i yielded £30,239,794. This is even assuming that of the .wool which has been exported direct to London for sale (some 452,390 bales) only nets £14 3s lid, whereas it is sure to realise considerably more, for two reasons — firstly, most of the wool sent to London for sale is composed of straight lines of the better class of station clips (mostly fleece) and a much larger percentage cf scoureds than is 6old in the colonies; secondly, the market has been a rising one. The previous year's exportable surplus of 1,869,455 bales was valued at £25,261,011, so that the exportable surplus of 1906-7 results in an extra increase of wealth to Australasia of £4,410,950 The quantity of lambs' wool dealt with in Australasia during the past 12 months amounts to 105,873 bales, as compared with i 86,190 bales for the season I^ls-6 — an ijicrease of 19,683 bales. [ The proportion of lambs to fleece sold | was 7 per cent., as compared with 6 per cent, the previous season. Taking the average weight of a bale of i wool at 3401b net. and dividing the number of sheep and lambs shorn, the net i weight of wool produced per head is eetii mated at 6lb 15oz. while the monetary return per head works out at 5s lOd gross. The number of 6heep in Australasia at December 31 last amounted to 103,548,330 — an increase of 9,711,782 for the 12 months, very satisfactory considering that just on 16.000,000 were slaughtered for meat. The proportion of scoured wool sold ia

' the Australasian markets has been the same as during the previous year — viz., 11 per cent. The proportion of crossbred wool shows a decrease of 2 per cent, as compared with the season 1905-6; the percentage for the past season being 23 per cent, crossbred, 77 per cent., merino. This will seem strange, considering the increase in the frozen meat trade; still the bulk of the increase in the past clip has come from ihe great merino States of New South Wales and Queensland.