LONDON WOOL SALES.

Otago Witness, Issue 3524, 27 September 1921, Page 13

LONDON WOOL SALES.

8.A.W.R.A.'3 I. A TEST AX SO CSC& M EXT. Fhosi Our Special ('orrespoxdent. ■ LOXDOX, July 28. in Coleman Street Wool r.xoiici.ge uro finishing to-day, and as th® end e.nr.vs near it is pleasing to be abl“ to e.u-omole an all-round slight stiffening u* t allies. 1 oward the tuiddle of last week a better buying spirit developed, homo trace buyers evidently had awakened to the tact tuat some cheap crossbreds wore on. oili r. ami trade or no trade, many firms cleaned to have a “flutter,” throwing cn oi:e side all re-erve and competing for tne.n wir.i pre-war .rime spirit. What can tn.re be wrong with good greasy fleece wool see ng from. 5d to 9d per lb for the , j e ‘P ipia.i-ties, uiv tC s to 50’s? These j hate always been regarded as "bread and I -utier and wc think there are i unmistakable signs of more trade being ! “one m them at no distant date. One rejoices to hear that several West Hiding i worsted spinners are going on fill time, the | eery firms who specialise in spinning both I single and Uvo-lolu yarns out of 35-We , wools for the ( •mrine'ut. The very fa,® of j these working five days per reck is sue j evidence of a large consumption and <* j better order sheet, and we have reason fir i saying that there are several firms who have i so.d their whole output for the next two j months. We have seen evidence of this ; during the past week in Cob man Street ] Wool Exchange, and believe that crossbred | wools at current prices are worth hiving. \ It may be true that a new clip wid be | shorn in South America and New Zealand | beginning in September, but, that wool ran- ! n °t be available for consumption till l)e- ---: comber at site earliest, and home trad® | users inust bear in mind that there is every | likelihood of a!! crossbred wools being ; largely influenced by B.A.W.R.A.’s rei serves, winch we behove are somewhat higher to-day than "free'’ crossbred wool has been selling ai during the past t !:-.•* weeks m Cob man Street Wool Exchange. I-IRIIEK VALUES. As already indicated, a better buying spirit has bad some effect upon prices, e.try ! quality of wool being rather clearer at l!.u | finish titan, during tne first week or i.n» i series. At one all merinos were 10 1 per cent, under June prices, but towards the cl ore most of that had been regained, ! and at the outside best merinos ran only | be called 5 per cent, down, and medium ■ classes, so much favoured by Germany, are ,’ almost on a parity with the close of last • series. Ir was ready wonderful to see tn® i incoming of the Herman contingent, and I one was at a loss to understand why !h“y | should renew their operations on snen a | large scale after being comparatively ciuinti j during the opening week. This increased ! activity nest be taken us sure evidence of | booking new important business, save rat ; German buyers frankly admitting that they i had received larger buying orders than I when they lift, and even their limits had been raised all round 5 per cent, 'j his was news wliioh selling brokers reiishcit the | most, and at the close both merit: ;-s and | crossbreds showed greater strength ’“and | higher clean costs than during the u oning week. B.A.W.R.A.’S POLICY. A good deal of interest has been aroused by an oifieial announcement regarding tho policy of the British Australian Wool Realisation Association. According to thia announcement no new clip wool shipped from the Commonwealth after May 9 will be offered for sale before next (letober. This means that at the auctions in London and elsewhere privately owned wool will still continue to bo offered entirely fro® from the official reserves imposed on B.A.W.R.A. wool, but from October till April, 1922. the official limits will be operative on all colonial wools. This clearly indicates that the directors of B.A.W.R.A. intend to adhere to their policy of maintaining reserve pi ices, and they frankly state that they consider this to be necessary in order to support the stabilisation policy which has received the approval of th® majority of growers in Australia. Thau briefly is tbejposition of B.A.W.R.A. today. In other'Words, it is a sore spot with B.A.W.R.A.’s directors that the next series of sales will see a fair quantity of “free'* wools offered to be sold at the best prices buyers will pay, but after October all wool catalogued will be subject to B.A.W.R.A.’s standard reserves. That policy, it is hoped, will save the entire position, by more or less creating an artificial basis, but it remains to be seen whether it will work. On® reason why B.A.W.R.A. took out of th® auctions just finished about 12,000 bales of wool was because her limits were not being realised, and rather than spoil the market it was considered policy to finish the series one day sooner than originally arranged. Many think that B.A.W.R.A.’s future actions will be influenced by market values in South America and South Africa, but that remains to be seen. Future demand and prices will be very largely dictated by the state of trade in England and on Continent.