LONDON WOOL SALES.

Otago Witness, Issue 3101, 20 August 1913, Page 17

LONDON WOOL SALES.

(From Our Special Correspondent.)

LONDON, July 4. FOURTH SERIES OPENS BETTER

THAN EXPECTED.

Once more interest is centred in Coleman Street Wool Exchange, where the fourth scries of colonial sales began last Tucsdaj. The event was looked forward to with more than usual interest on account of what has recently taken place in consuming centres. It is an acknowledged fact that at the Wool Exchange is outlined the actual standing of the raw material, and all alike recognise that what is done there to-day will soon be imitated by other centres. The whole textile world is largely interested in the course of the market, for, after months of moving upwards, prices have stopped, and to all appearance the top has been reached. When one remembets that ever since January, 1912, the tendency has been towards higher prices, the reader will see that users are paying very different figures for the raw .material compared with 18 months ago. If wo take 6$ s tops as representing merinos, the price in January, 1912, was 25d, whereas to-day 30d has been made, some of the best makers in Bradford actually realising 2s 6id. If we take 40 s as representing crossbreds, wo find that on the date mentioned Is lid was the riding quotation. whereas Is 4jd has lately been made. All this serves to show that values are on a very different level from what they once wore; in fact, if we go back to the beginning of the present century we find that crossbred values have risen nearly 200 per cent., while the price of merino tops is at least lOd per lb more than in 1901. All this has impressed upon the minds of consumers the belief that wool is now high enough. In fact, the home consuming trade seems with the voice of one man to have called a halt, for on all hands less business is being done, and no increase in values has been possible since the end of February. BIG WEIGHTS AVAILABLE. It cannot be said that users are short of supplies, and the quantity which at present confronts the trade is very considerably. At a July scries some big quantities of Now Zealand - * crossbreds are usually available, and the present sales are no exception to the rule. We find that since the lists closed lor the July sales the gross arrivals have been no less than 255,000 bales, while 175.000 bales have been forwarded direct, leaving alone the wools held over from the May sales, a net available quantity of 171.000 bales. Out of this no less than 101,500 bales are New Zealand produce, 9o per cent, of which will be crossbreds. In addition there are 25,000 bales from Punta Arenas and the Falkland Islands; those, too, all being crossbred descriptions. Thus the reader will see that the weight of wool to be catalogued is considerable. Recognising the position of things, importers and merchants have already decided not to submit at least 30,000 bales of New Zealand wools, a policy which finds hearty approval among the trade. All feel that there is wisdom in not compelling users to absorb more wool than they can comfortably deal with, for stocks in consuming centres are already considerable, and no section of the trade lias come to Coleman street particularly hungry for supplies. However, I believe that what is put up will be readily absorbed, and, taking the series as a whole, wo are looking forward to a good time. A number of American buyers have turned up, and although it is too early to say what they intend doing, it is not often that nearly a dozen men are present without giving a good account of themselves, and we are looking forward to them taking considerable weights in anticipation of the new tariff under which all expect wool to bn imported free. COURSE OF PRICES. It is well worth halting a' moment to chronicle the course of values. The vacation has been unusually quiet, the quietest wo have witnessed for the past 18 months. Of course, it is the position of values which has lead to a halt, and with ultimate fabric buyers beginning to kick it is time for spinners and manufacturers to look round the corners. It is remarkable that since the end of February prices have been unusually steady, there being just about- sufficient business passing to keep them firm. During the pas: month, owing to the continuer] absence of new business, a little reaction has taken place, mostly on account of financial pressure, and where sales have been made topmakors have usually had to accept id to id less than previously. All tho same, this is but a email decline compared with what mijrht have been expected under lees favourable circumstances. Considering tho many adverse factors which tho trade has had to' face, it is really wonderful that prices have not fallen more; but no The lad ho loved her deeply. For she billed and cooed so sweetly, And she promised he should have her In the happy days to bo. But she qualified it thuswiso; That she’d marry him for sure I! he’d promise to always keep a stock Of Woods’ Great Peppermint Cure.

doubt tbe strength of the whole situation has been the healthy state of the home trade. I give below a very useful table showing Bradford quotations for leading descriptions of tops at the close of the May sales and at the opening of the current

OO a tt ft piWpdir<!U • • -t-'-'A •* A DECENT OPENING. Tho opening sale on Tuesday was well attended, Coleman Street Wool Exchange being crowded to it<s utmost capacity. Many buyers arc home from Australia, and every seat was filled. Catalogues wore by no means spicy, but contained some good useful wool, chiefly of a crossbred character; in fact, this class of staple largely predominated. Competition ruled very good, the home trade loading the van. Bradford topmakers especially wore well to the front, and gave excellent support. Both France and Germany wore found fairly ready to absorb merinos, and, taking all things into consideration, the initial sale passed off well. Comparing values with the close of the May series, the few merinos catalogued showed no change, and no doubt with a bettor selection prices will 1h? firmly established on a full parity with May rates. Coarse crossbreds also sold quite easily at fully last sales’ rates, but a little, irregularity was seen in fine crossbreds, these occasionally declining gd. Slipes also sold a little irregularly. and hardly up to the extreme rates of May, except in the case of short-carding slipes, which are still very dear. Tho Punta Arenas wools were plentiful, and mostly sole! at full id decline. iSouth African carding wools fared, if anything, tho worst, tho heavy lots mostly losing ground to the extent of id to id, although snowwhites were unchanged. All things considered, the opening results gave satisfaction, and succeeding salts have fully confirmed opening values. THE OUTLOOK. Messrs H. Dawson and Co. make tho following observations regarding tho outlook ;—“'The past interval has been so disappointing as regards new business that it furnished little encouragement or stimulus to the market opening in London to-day. The high bank rate and tho wearisome and interminable political difficulties of the Balkan question have had a deterrent effect on trade in all commercial circles. It has been surprising that the raw material has so long and so strongly withstood these adverse influences without any serious shrinkage in values, especially when it is taken into account that in some centres, notably in Yorkshire, there have been considerable stocks to carry without any strong buying movement since the last series. Fortunately all the principal European centres, with the exception of Saxony, report a maintenance of consumption, and mill 6 still continue to be well employed. Most of these are, of course, engaged on old orders, and there is now some anxiety to sec new business forthcoming. Manufacturers generally have found it difficult to enforce their advanced quotations, but it is felt that the verdict of London market will do much to release orders wliich .have V>ecn kept back pending the establishment of a firm basis. “The statistical position is unchanged, and every week will now make the stiength of that' position more apparent and more potent. It can only be counterbalanced or weakened by a falling off in consumption, and. of course, these high prices have a tendency to restrain and to chock new business; but so far as can bo gatheiod tho diminution of consumption, except in America, is not serious enough to bo noteworthy. The supplies for the year are now well known. In merinos there is nothing to weaken the position at this soi ics, and should any volume of new business bo forthcoming the available stocks in combing wools would be very inadequate, Fortunatelv, the Queensland new clip w being marketed, and last week some 40 000 bales were sold in Brisbane, and will help to relieve the situation in September, “In crossbreds provision must bo made to cover industrial needs until December and January next before the new clip can bo got into tho mills. New Zealand contributes the bulk of the wools available for the present year Ihe South Ameiican clip has been remarkably well absorbed, and there lias seldom or never been such a small quantity of floating supplies or stocks available for sale at this period of the year. “It is difficult to determine whether to take the American situation as an asset or otherwise in the ’•eckoning. Iho most hopeful feature is that at last there seems to be a chance of a settlement within a few weeks, an assured result of which must ho a large release of business which lias been held up because of uncertainty and the lack of a !>asis of values Whether America or Europe will be the greater beneficiary or whether all the adjustments proposed are workable, are secondary and disputable questions, but the needs of the population and tlio wealth of the country are such that tho woollen industVv hi the United States cannot much longer remain in a state of stagnation. There ’s also no doubt that a large vacuum lias soon to be filled so far as manufactured goods are concerned, owing to tho enormously diminished production of tho past two years. The financial stress in Bradford and elsewhere, duo to early arrivals and to congestion in tho combing in ills, has now become somewhat eased. When these facts and the general statistical position are all taken into account tne period of cheaper raw material, so much desired bv the industry, does not yet appear to be at hand.”

series: — May 7. Julv 1. 1913. 1913. d. d. 70's colonial tops, average .. 31 30 J G4’a „ 30 29J 60s „ super 29i-29J 29J GO’a „ ordinary .. 29 28J 58’s „ „ average .. 26 25J 56’e ,, „ 23i 23 50’» „ 20J-201 20i 48’s „ carded 18J 18 -18J 46’s i, prepared .. 18i 18 -18J 46's ,, „ carded 17J-17J 17 -17J 40’s „ prepared .. 16J-164 16 -16i 40’s carded 15J 15i 3G’s .. prepared .. 165-16 152-16