LONDON WOOL SALES.

Otago Witness, Issue 3489, 25 January 1921, Page 14

LONDON WOOL SALES.

REDUCTION OF GOVERNMENT LIMITS BRINGS OUT BETTER B LYING SPIRIT. Fkom Oun Special Correspoxdknt. LONDON, November 18. Ihe sales are being continued under very hmiliar conditions to what obtained a week ago, and although there are several soft spots, if anything competition has somewhat broadened, and instead of more than half the catalogues being withdrawn there is more competition and fewer withdrawals. The Government seem at last to have awakened to the fact that it is useless sticking to their recent reserves, for at the beginning of. the sales this week lower limits "ere in evidence, leading to somewhat more active competition. It is somewhat difficult to say exactly how much lower the limits are but on average they appear to be around 20 per cent. What we mean is that buyers are valuing on the basis of opening rates, and Government reserves have been lowered to harmonise with what buyers are prepared to pay. This means that a bigger volume of wool has come within the range of being purchased, and instead of buyers valuing 50 lots and only perhaps half a dozen coming within the range of their values, practically the whole of the offerings have come within measurable distance of being sold. This has led to better sales, an improved feeling is abroad, and there is unmistakable evidence oi a better buying spirit—all due to the Government being' prepare*] to meet the market with wool at current market values. There is undoubtedly a different standard of values ruling compared with last series and, as far ns one can see, prices have dropped anywhere from 15 to 25 per cent,, according to the character of the raw material in question. \ MERINOS. Some very good useful merino grease combing wools have been catalogued, both the home and French trades operating fairy extensively. For instance, last Mondav there were vc-rv good offerings of West Australian memos, bulk 64’s, 3in to 4in staple m many cases, and real typical topmaanig wools. Several clips sold' from 30d to vOo m the grease, and as these would give all round half-weight it is evident that good combing wool is still on the top side of .what some topmakers are offering 64’s at up Brad lord to-day. It is simply amazing to find good 64’s tops being offered at 5s 6d when good medium fleeces arc costing GOd clean rx warehouse. Of course, it means blending these wools with something cheaper (pieces and bellies) in order to brmg m tops at the price named. Greasy combing wool from New South Wales has sou! anywhere up to 33d, but, of course, these wore, more or less hurry, and even .\ irtoriu-i n duos were faulty in this particular. Good scoured merinos are selling up lo .5Gd.. a proof that anything ren, v good is still commanding very good support. There is far more buying on French account than anyone would expect in face of the depreciation of the franc, and there is evidence that both France and Belgium would be big buyers hut for the . unsatisfactory exchange. Merinos are sell- i mg distinctly better at the lower reserves, j and there is cause for satisfaction that more | wool is being taken. CROSSBRED SLACK. j Little that is good can be said regarding ! crossbred.?. The call is still fair for fine j sorts, such as good comebacks and 56’s; but. j withdrawals of medium and coarse cross- j creels continue to be unusually large, It has often been asked why these have fallen 1 upon such evil days, It is largely due to

ths home trade carrying big stocks of tops, all of which are not meeting with, a satisfactory demand when spun into yarn on both home and export account. It is becoming apparent that the Government are going to be left with some big weights of medium and coarse crossbred wools, and many believe that very- burry Australian classes will ultimately have to bo sold at ver v low prices. If 500.C00 bales could be sold to Germany, and then carbonised it would be a grand relief to the department, but home trade houses do not regard with favour the idea of the Government negotiating private sales with any Continental Government, many contending that this will prevent the home trade doing legitimate business. It is not within the iirovince of any Government to be a private trader, but tinder present conditions Sir Arthur Goldfinch and those associated with him will probably think somewhat differently. Slipes are selling fairly well, particularly good halfbred and three-quarterbred lambs, these still fetching fairly good figures. Apart fr om the descriptions named, home trade buyers do not seem to favour any class of raw material, the result being that no big quantity of combing wool is selling. Scoured crossbreds are going fairly well to Scotland, but here trade is much quieter, and only the best parcels are being absorbed. CLEAN SCOURED COSTS. Messrs Kreglinger and Fernau have issued the following table, showing what the different descriptions of wool aro costing clean scoured. The particulars show the actual decline, and how to-day’s values compare with July, 1914 :

Sales in Australia and New Zealand, as well as South Africa, are being watched with tne keenest interest, notwithstanding tile poor state of the home trade. The sale at Adelaide last week-end seems to lia\e been a poor affair, 'ihe decline exceeded all expectations, and to find wools quoted down anywhere from 15 to 25 per cent, has dealt a nasty blow to trade It is now a case of colonial sales being’ distinotly below London parity, and the ‘‘bears” seem likely to have an innings. h\ crybody in the trade is familiar with houth Australian merinos. They are good of their kind, but do not possess that fine fibre seen in the merinos of New South Wales or Queensland. Still, for big bulky topmaking wools Adelaides will be hard to beat. Some of the clips will be 4in in staple, and will give a clean yield of up to 53 per cent. Some that were sold last Friday, while showing 64’s quality, are very red and earthy. Still, it is the clean scoured cost ex warehouse which has surprised everyone, and to have good topmaking 64’s quoted at 31d to 38d clean is what has surprised everyone. At the Melbourne sale last Monday the clean scoured cost of good 64’s warp wools is returned at 53d, and Sydney merinos are selling on about the same basis. r llie 44<] paid for greasy merino wool in Sydney last Monday must have been for a very superior line. Evidently American competition is still in evidence for the very best parcels, and Sydney is maintaining its record very creditably. All the same, values on the week show a distinct o.ecline, and competition is too limited for anyone to say that wool sales are going satisfactorily.

July, Sept. 25, Nov. 13. 1914. 1920. 1920. per lb per lb per lb Combing. d. d. d. 70’ s superior fleeces (Government reserves') 82 95-105 90-80 64-G7’s good medium fleeces 304 85 70 60-64’s good medium fleeces 30 70 60 64’s good pieces 28 66 60 Go’s good pieces 27 60 54 58-60's good medium fleeces 29 60 *60 56’s fine crossbred fleeces 20 55 *42 50-56’s fine crossbred fleeces 234 *48 *35 46-50’s crossbred fleeces 18 *36 *26 46’s crossbred fleeces .. 17 no sale *22 44’s crossbred fleeces .. 16 no sale none 36-40’s crossbred fleeces Capes. 154 no sale none 10-12 months combing capes 27 *60 *42 6-7 months good clothing capes 24 none *33 Carbonising. 60-64’s good carbonising pieces 26 50 32-36 60-61 s carbonising pieces and bellies .. 25 43 28-30 60’s average locks .. 20 *38 64’s average lambs 22 *30 Nominal.