LONDON WOOL SALES.

Otago Witness, Issue 3525, 4 October 1921, Page 15

LONDON WOOL SALES.

FINAL RESULTS. From Our Special Correspondent. LONDON, August 4. Since last writing the "Y” series of sales have oome to a finish, and one regrets that the end did not maintain the distinctly better prices which were ruling during tho close of the second week. One feels that at the finish prices were distinctly lower than in June, and the best parcels of greasy merinos fell 10 per cent., while the finest scoureds were mostly withdrawn. Medium merinos, including shafty 60’s wools, somewhat appreciated from tho opening rales, while faulty and burry pieces met a strong demand throughout. line crossbreds were mostly 5 per cent, down, while medium and coarse crossbreds often declined 15 per cent., siipe crossbreds being 1 fully. 15 per cent, below the close of the previous series. These results when viewed from a price standpoint, and after ail that- is the most important from the standpoint cf sellers and growers, cannot but be regarded as disappointing; but when we come to the question of demand, German competition certainly showed very sensible signs of increase—in fact, the outstanding feature of the auctions was the great call on Continental account. This was without doubt the most satisfactory feature from the sellers’ standpoint, but very tantalising from the viewpoint of home trade buyers. To find Germany ever in the van prepared to pay bigger prices than ©ifcliGi h i a nee or the home trade was an item that went down badly with home trade spinners and manufacturers; but it can be taken as proof of good trade, and certainly shows how fast Germany is recovering from the stagnation ruling durum the war. ° CLEAN SCOURED COSTS. The average prices ruling in London for the "free ’ wools as well as those belongto B.AAV.R.A. are well illustrated in tho following table, which shows on what basis wool was selling : ■ *1 i 'A 11 Hi m m hi in «**«* **r in mi iii ill iii Quality. Free. Burry. d - d. cl. d. 80 3 ..45 40 _ 70*3 .. 35 30 30 22 2G St’s -.29 26 25 20 24 60’s .. 25 22 21 18 o-O 58’s .. 22 19 20 17 18 56’ 3 ..18 16 18 13 15 60’ 3 ..12 10 18 11 94 4S’s ..Ol- 9 16 10 Slut's 9i 8 12 9 74 405.. 8 7 30 8 7 36’s .. 8 7 9 7 7 Ordinary Superior and ~ Scoured l. ( mg Milium Short* Short Combing. Combing. Free. Fauitv. cL d- cl. d. ’’ Oapo ... 27 21 ay 1 7 (Clean scoured bales.) U.A.W.R.A.’r? AIMS. Judging from the recent circular published by i he London directors of the British-Australiun Wool Realisation Association. it is clearly to bo seen that this big body is to exercise its authority by dictating wool values to the entire world, and, beginning with October, nothing wili be sold under the reserves fixed by HAWK.A. This will. then, cover wool shipped from Australian centres since tho beginning of May. and from October next to April, 1922, all Australian wool will bo sold in London and elsewhere conditionally upon the reserves fixed by Ii.A.W.R.A. It is well worth asking how things stand to-dav compared with the known limits of Ii.A.W.R.A. We have reason for saying that superior merinos arc not realising the limits cf Ii.A.W.R.A. ; hence practically none were offered at, the recent London sales, ft is well known that, medium and crossbreds are sensibly below 15.A.W .R..V s limits, and it is in wools from £o s A 1 s. ehieily medium fleeces, where 15.A.W R. A.’s reserves are being > I. A leatling membe r of t he trade •aid - the writer during the course of tho recent auction that medium merinos, the very wools which -o largely commanded tho support 'if Lent mental, buyers, were soiling at 10 to 15 p-r cent, above B.A.W.R.A.’s resumes, and fine erosjjreds are also about 7± per cent, above those limits. The Loudon din etors of this august, body cannot touch the "five” wools before next October, and then the trade will probably see some fun. By October there w:il be available another new Australian clip. and many ft-el that, supplies in sight are even more than what the Continental trade can absorb. However, in tho mean-

time it 13 to be hoped that the home trade will show some signs of revival; but there certainly will have to be a sensible development at the manufacturing end of the trade if business is to at all gat on to its feet. FELLMONGERED WOOLS. The announcement from Australia that the directors of Ii.A.W.R.A. in Melbourne have, decided not to include fellmongered wools in their scheme lias been received m wool circles with a little surprise, and yet we think that the right thing has been done. Fellmongered wools are a very different proposition from fleece wools, and if tho former were to come under the jurisdiction of Ii.A.W.R.A. and its reserves had to bo enforced for these, it would certainly lead to more dislocation of trade- — a very v.ndesirable thing in view of the approaching n w clip. It is quite true that Australian fellmongers handle their skins somewhat differently from either British or New Zealand fellmongers, and whereas fellmongered wools from the Dominion come to the London market always in tho sliped state, yet the fellmongered wools in Australia are nearly always marketed in the scoured state. Even the fellmongered wools from Smith America are marketed as slipea, just the same as those from New Zealand, and the one method does not: offer any advantage over tho other, so long as the stipes are not so dirty as to discourage buyers from looking at them. One is iust as good as the other, for every parcel is largely bought on a clean scourer! basis, and Australian scoured fellmongered wools will soli at a market rate no n: itrer what may be the reserve limits of Ii.A.W.R.A. Unless the writer is greatly mistaken, these fellmongered scoured wools will realise fu!ly B.A.W.R.A.’-s reserve, for it has to be a specially sorted and scoured lot of wool to come tinder the category of being superior. There are several well-known brands of scoured skin wools, such as Clyde, Gibb, Sandown, Mimosa, S.M.P. and Co. (T.td.). Flemington, and Esher wools, all well-known at the London market. It is quite true that these are often bought to deliver so many bales per week or per month, delivery to extend over possibly three- months, and for the sale of these wools to be handicapped by B.A.W.R.A.’s reserves would be a mistake. SOUTH AFRICAN WOOLS. Although at the recent London sales 169.000 bales were catalogued, only 1500 bales of South African wool were included, the proportion being sadly too little for such a country. Even those that were disposed of showed an average decline of 10 per cent., although tho writer thought that good snow whites sold relatively better than greasy parcel.? on account of there being a scarcity of scoureds. There certainly rnig-ht have been a better show, and it is significant that the bulk of the greasy wools were purchased on Continental account, and one feels that but- for Germany the decline would easily have been another 5 per cent, 'i lie market is verv bare at pres ut of good Cape wools, which is in favour of rhe article. The forthcoming clip should be a. good one, and next month shearing will begin- in good earnest through South Africa, when the bulk of the wools shorn should be of 12 months’ growth. Those certainly are the wools that are likely ro sell best, and be wanted most. To-day it is significant that .Youth African merinos are selling on o clean scoured basis of practically the same as Australian merinos of medium character. The Continent is also buying liberally of good snow whites, and one perceives a good deal of pre-war conditions about the demand for this class of wool. The Continent has always been a liberal buyer of South African snow whites, which are taken straight away into tho blending room of woollen and flannel manufacturers. Today these wools are apparently again wanted for the same put pose.