THE WOOL SEASON.

Otago Witness, Issue 2805, 18 December 1907, Page 9

THE WOOL SEASON.

AN INTERESTING REVIEW. The following; interesting review of the wool aeaeon which is Ju*t opened has been issued by Messrs Donald Reid and Co. : — In view of th» leoent •eriovw fall in values, and the prsflwrt unsettled state of the wool market, ooubtlese our many clients and sheep farmers generally will be anxiously discussing th» price they may expect to receive for their new clip, and no doubt staplers ana manufacturers will also be considering hew much they c»n afford to- giv« for it. Speculation, or inOCcement to speculate, in any article h*« always the effect of quickly raising its value, to tfre advantage of the producer, whil« the atosenjce of any iaduoement to speculate has the opposite effect. Wool is one of those product* which never fails to find ready investors when the prospects are at ell favourable; but under unfavourable circumstances time can be but little competition for even the best *qlips, j while inferior wools will be compjtfativwy i neglected. The causes which operate in fixing the price of wo«l *re: the present actual requirements and future anticipations pf th« trade. These are -the two factors that dodiie the demand, en which the calculations of both buyer and eeller are — or ought to be^ — based. The trade in wool, or in woollen manufactures, is, to a large extent, ruled by the freaks of faebion. A l»rge proportion of our farmers' wools, and of all low country wools, r,?9 of a class technically known o» longhaired or lustrous wool, and almost the whole of this class of wool is used in th.c nianufacture of lustre goods. If lustre fabrics are out of fashion, the demand for this class of wool diminishes, the price falls,. ana farmer ana manufacturer both suffer from th* depression. This v virtually What is now wtppening. Th« fashion of the aay appears to bt changing, mpa, in oonseqsunc«, our long wool* come intp a weak" market, where at th« beat iiiey take second place,

and, unless of superior quality, have to be content with a second-rate price. But in addition to the unsettled state of the wool trade, caused, to some extent, by ■ the change of fashion, the American financial crisis is operating injuriously on wool values. No one at present can foresee to what extent, or how long, it may affect the manufacturing trade and values of wool generally. Outside of the causes named, there ia no apparent well-grounded reason to justify suoh a serious depreciation in values but in forecasting th« future of the market, we ought to bear in mind that during th» last few years wool lias realised extreme prices t and although this season's reported sales show a large reduction in values, nevertheless prices now being paid are considerably in advance at those ruling a few yearn ago. It is unfortunate that just on the eve of our season's sales we should be met with such a serious fall in prices. "We do not pretend to be able to give any reliable indication of the future of the market. This, at all events, is certain: Late values hay« ruled high, and there is no assurance that present value* may not continue to recede. It is vary undesirable to hold wools for any length of time; so that if wools are not sold they should be sent at once to the Home market. Wools that have been held over are not in favour with manufacturers. There ia a double loss in holding wool — a loss in capital and a loss in value. Wool deteriorate* in value by being hsld. The present prospect* are not bright, and prices, as compared with those ruling during the last two seasons, will probably show a depreciation of fully 3d on sound crossbred Wools of medium quality, and to a greater extent on inerior grades. W« anticipate that for all wools suitable to th« prevailing demand, suoh as quarterbxed nmino Mid fin* balfbred, there should be good competition and fair prioes. Strong lustrous wools, and oqarstt orossbreds and low class wools generally will, we fear, meet a disappointing market and meagre competition.