LONDON WOOL SALES.

Otago Witness, Issue 2818, 18 March 1908, Page 8

LONDON WOOL SALES.

(Fhom Our Special Correspoxdext.) LONDON, January 24, 1908. OPENING OF THE FIRST SERIES.— THE QUESTION OF SUPPLIES.— BETTER START THAN EXPECTED. BOTH MERINOS AND CROSSBREDri lIRM.—AN FXPERT OPINION ON THE OUTLOOK The firs*" series of colonial wool sales opened last Tuesday, Coleman Street Wool Exchange being filled to overflowing with an anxious crowd eagerly waiting to know the initial results. More than usual interest surrounded the opening, due entirely to the course of prices during the interval. Towards the end of last year things in Bradford were very slumpy, while alsj Continental futures dropped severely. 1 don't think I can do better, as showing the general course of prices, than give a table of standard wool commodities at the close of the last series, the end of 1907 (which was the lowest point), and at the opening of the present aeries : —

Ttw experience of the last two to three months in the wool trade has been very depressing, all due to financial stringency, a high bank rate, and partly shaken confidence. However, with the turn of the year and more favourable monetary conditions, a change for the better set in, price* have partly advanced, and now the verdict of Coleman street is awaited to ccc 'f things are sounder than many suppose. THE QUESTION OF SUPPLIES. The wool trade to-day is largely interested m dealing with heavy arrivals of direct imports, and this aspect of the situation will enter largely into the question of price for the next three months. It is well known that Australia's last clip was an early one, and up to the erd of last December something like 1,200.000 bales had been shipped from Australasia for the first six months- of the wool year, or an increase of 80.00G bales up to the end of December, 3908. This means that the trade is confronted with some heavy weights of wool, which will have to be tackled during the next two or three- months. The bank rate having come down to 4- per cent, means considerable help to importers, but they wil! need to see arrivals mov» off quick to satisfy bank officials. It is well lenown that the heads of financial institutions are at present in a very careful und inquiring mood, knowing as they do that upon all imports a heavy loss will have to be faced. Germany seems likely to suffer the most, while many Bradford houses will also find their financial resources heavily taxed before effectually liquidating their Australian purchases. Regarding supplies, the quantity available for the current series is larger than for some time back, and the following table is well worth analysing. In the first column I show the actual gross arrivals for the January series ; in the second the net quantity available : and in the third what quantity of New Zealand wools— mostly crossbreds— go to moke up the net available bales for sale at tho current series: —

1901 .. 250,000 *339,000 70,000 * 133,000 bales were carried forward from the December series, 1900. to the January series, 1901. ~ A NEAR SHAVE. Last Tuesday morning opened dark, dull, and gre>, a dense fog enveloping everything. Ir was perilously near a miss, but by 9.30 a.m. the darkness somewhat lifted, and all buyers turned out. It proved to be more or less a ground fog, for when we were hoisted five and six storeys high to where the wool was on show we could see fairly well. Three catalogues were put before the trade on the opening day, medium merinos largely predominating. From the number of familiar faces round 1 valuing it was plain to be seen that there would be a full room, and frequently, as friend greeted friend, an expression of opinion was given as to how tilings would go. Nobody felt inclined to prediot a rise, but few prophesied a fall. Crossbreds were evidently the dark horss, it being the general opinion

that fine wools when of decent character would hold their own. Perhaps Continental buyers were in less form than usual for expressing an opinion, and wisely they refrained from saying much till they saw how things went. ■ The wools on show for an opening day were mostly suitable for the Home tradt 1 . and biijerfl worked hard and valued well. There was nothing suitable for America with the exception of a few nice lots from Vicioria, and the crosabreds were not of sufficient character to tempt Yankee buyers at all. However, the catalogues were gone through thoroughly, and nothing seemed to have been missed. Ai 4 p.m. Coleman Sheet Wool Exchange presented a very animated appearance, every seat being filled. At the very start competition proved to be keen, bids were given freely, there was nothing of that dilly-dallying and hesitancy that characterised the opening at the last 6eries, eierjbody putting in their full price r-traighi cff. It was really a treat to see the fight for straight lots of wool, and even bod.; remarked that bidding was more animated than at any time in November. This much can be said : that more competition anJ spirit was seen about the room en the opening night than at any time last series. Tho Home trade led the van, supported mostly by France. Germany was less active, as could only be expected, though some nice parcels went to that quarter. But Yorkshire buyers were to the fore from- first to last, and withdrawals were very few indeed. It was soon evident that merinos were making fully last sales' closing rates, and crossbreds were taken with avidity by Bradford. In a word, the results of the initial sitting proved to bo better than was expected, and everybody felt pleased that prices should be made that showed practically no change on last series. The following table shows the alterations : — Good to super combing merinos par to \d advance Average combing merinos par S'aulty burry merinos .. *d cheaper Fine crossbreds pai Medium crossbreds .. .. par Coarse crossbreds . . . . par to Jd cheaper Slipe crossbreds hd cheaper Wednesday and succeeding sales saw "nrought fonvard a better selection in all qualities and fully opening values- continue to rule. The most pleasing feature continues to be good general competition, America buying a few lots of the best merinos and erossbreds, and Germany might be more active. Still there is keen competition, Yorkshire taking the bulk. What is now wanted is a firm finish to did pel ihe dark clouds that have been hanging over the wool world, and to let fabric buyers see that, after all, prices are sounder than was generally supposed. Coleman street does not reflect at all the pessimism 1 of some quarters, and the tone and spirit now seen should galvanise into activity all other markets. If men can only be :uspi:ed with confidence, then we have seen the worst. THE OUTLOOK. Messrs H. Dawson a-nd Co., when speaking on the outlook, say: "The opening of the prr^ent series is being awaited with anxious interest in every branch of the induotiy, and its verdict as regards value? will do miich to determine- the policy and settl'3 the course of business. * The past interval has been one of anxiety and uncertainty. Great hesitancy in placing orders has iieen the feature of the markets, and to-day everybody .hopes for the fixing of a basis of \a2ues. " The acute and world-felt financial crisis has tested the stability of the industry severely, but the fine wool branch of the •raae has suffered to a minimum extent only. Happily, the money stringency is passing; sway. Discount is no longer at a prohibitory rate, having eased in all the centres, and further relief may be expected in the near future. The American situation is more hopeful, although there is at the moment a natural reduction of output. The stocks in. domestic quarter-blood wools are considerable, but Australian wools and merino comt/ings generally, which are chiefly wanted, are very lightly stocked and in good request. There are indications that the United States of America will be a steady operator in the London market throughout the year, especially seeing that their purchases have been comparatively small in the colonies. " .The stocks of merino tops in Germany are also at an extremely low, if not at a ' record ' level, and there, as elsewhere, despite the financial trouble, the position in the industry is much alleviated by the fact that stocks of merino are light, and that tho machinery is close to the supplies. Combing mills in all centres testify to the fact that as quickly as the tops are combed •■hey are required. " It is possible that the year may see a somewhat restricted activity compared with the groar rush of ihe past two years, but the new clip is so well drawn upon already and stocks in the mills are so light that good stapled merinos occupy a very sound position at the present- level. The easiness in faulty sorts is a necessary rectjficat ; on, which is due to the heavy proportion of noiU (now at a low price and slow of sale) produce- from these ftulty wools. Without any reduction in the price of tops adjustment is necessary to put values right hero. " The situation in regard to crossbreds is, however, not yet satisfactory, despite the salurar/ effect* of tho clearances of wools in Liverpool at buyers' values. Improvement is blocked by the stock of crossbred tops in German and French combing mills, ■uhirh aro dribbling off, as yet, at a very slow rate. It is hoped that the present, sales will put an end to the prevailing uncertainty and lack of confidence. The lower prices new current must help to stimulate demand, and this, with the better tone in financial circles and in the merino trade, shouic. assist in the restoration of confidence." The bank rate yesterday was further l-e-duced to 4 per "cent.— a very satisfactory feature indeed.

.903 -907 1906 L 905 L 904 L 903 L 902 Gross ai rivals. Bales. 353,300 275,000 291.300 235.00 C 190,000 216,000 211,500 Net quantity. Bale". 187,000 155,000 165,000 147,000 137,000 141,000 193,000 Zealand. Bales. 36,000 37.000 28,000 29.000 39.500 12.000 59.000

D Ws Colonial tops 54's „ „ >o's „ „ super )6's „ „ •O'a „ «'s „ „ 10's „ „ (63 „ „ )ec. 10, J 1907. d. 27£ 26 22J 19 16} 14 13 Dec. 30, , 1907. d. 27 26 25 22 18 16 12J 112 Jan. 21 1908. d. 28J 27J 26 22| 185 16J 13J 12*