PRICES FOR WOOL

Otago Witness, Issue 3584, 21 November 1922, Page 11

PRICES FOR WOOL

THE PROSPECTS BRIGHT. PRIVATE SPECULATION DEPI? EC ATED. A Daily Times reporter spent some time on Friday endeavouring to obtain representative opinions from those in the trade as to the bearing which the high prices obtaining at the Christchurch wool sales on Thursday are likely to have on the market in New Zealand during the coming season. The general impression seems to be that the prospects are very bright indeed, and that the staple product of the dominion is going to realise prices that have not been touched for some years past. Local brokers state that in view of the satisfactory cablegrams received in regard to the recent London sales very good prices were anticipated at the opening sale of ch» season in Christchurch, but the actual prices paid were evfen higher than the most sanguine expectations. Catalogues from the Australian centres further induced the belief that extreme prices would be obtained for merinos, but it- veils estimated that the best of our merinos would not fetch more than 2s a pound, as our wools are-heavier in condition and coarser in the fibre than the average Australian product. The top price in Christchurch of 25Jd was certainly unexpected, and should the market remain on even the same basis higher prices than these will be paid when some of the top quality clips come on the market. With regard to halfbreds. New Zealand can hold its own with any other wool-growing country, but the best of our halfbreds do not come forward for sale until IXcember in Canterbury and January in Otago. Cablegrams received from London this week show that. 56-58’s fine halfbred were worth for super quality 26d. for good quality 23d, and for medium quality 20d. The values of 50-56’s were 21d for sutler, 13d for good, and 14 * I for medium. At the Christchurch sale the equivalent of these figures were exceeded in both grades. With regard to crossbreds similar comparisons may to made, and in each quality it was very evident that the prices paid in Christchurch were considerably above to-day’s London equivalent. The inference to be drawn from this comparison in values is that the competition from our local woollen mills, from countries, outside Great Britain, such as Canada, the United States, and Japan, and from the Continent for direct shipment, has forced the local markpl above the London equivalent. Well-informed opinion believes that there is every evidence that our market will remain firm, and members of the trade are looking forward to more excitement and keener bidding at the local auctions than lias been the' case for probably over 20 rears. A good open winter has been exnerienced in Olago. and while the wool will no doubt vary to some extent the quality, generally speaking, should bo very high. One aspect of. the present- situation that called forth some pointed comments was the private speculation that is taking nlace in some of the country districts. “There has been evidence,’’ said one man v.ho was spoken to, “that private speculators are chasing round the country in the hop*' of persuading the unwary farmer into selling his wool prior to the opening of (he sales. This method of selling must be strongly deprecated. It is not in the interests of the wool grower, the wool broker, or the wool buyer. The New Zealand wool sales have now reached a point where they are of world-wide interest to the trade. It has taken many years cf very careful handling and work to bring them up to that point, and the contributing factors have been in the first place the support given the sales by the growers of wool; secondly, the large and expensive showrooms and plant provided bv tho woolbrookers for the proper display of the wool; and, thirdly, the large number of buyers who now attend our local auctions from every civilised country in the world. The majority of the buyers attending our sales represent the largest firms in the wool manufacturing trade’ in their respective countries. Many of these firms are specialty houses—that is to say. they manufacture special lines of

goods! and in order to maintain the standard of their articles they must have a special class of wool. From year to year the number of these special buyers increases, the reason being that the manufacturers whom thev represent found that thev could not trust'to getting supplies of (he particular wool they required on tlie Home market, and in order to obtain it they found that they had to come to the country which produced it. It will. therefore, roadll v be understood that if some 60 or 70 buyers arrive here in order to secure their reauieinents at our local auctions, and find that a few speculators have scoured the country and actually purchased a large hloek of wool, many of them will lie very unwilling to return to compete on this market.- The firms which thev represent will take up the attitude (hat the expense of sending their buvers out here is not warranted if those buyers are forestalled bv private speculators, and they will either decide to go to some other country or trust to the Home market, As far as can be gathered from inquiries made locally the wool clip this season will probably be about the same as it was last year as regards quantity. In point of quality some cf tho wool is expected tn bo better and some not so good as was the case last season. As a result of a prolonged period of dry weather the wool from North Otago and Central Otago is expected to be sandy end dusty and probably heavier in condition than usual. The product from South Otago, however, should lie bright, clean, and well-grown on account of the nmole supply of feed in tho winter. “There can be no shadow of doubt after the tone of the market at the Christchurch sale,” said one broker to a reporter on Friday. “that the wool buyers of the world recognise that the best place to buy wool is in the country in which it is grown. A wonderful change has arisen since the wa.r in tho direction of shifting the centre of the wool market, as far as purchasing is concerned, from London to the colonies. The prices realised in Christchurch on Thursday are almost identical with the prices paid in London last month. This means that the grower in New Zealand saves all the enormous charges that are incurred in shipping and disposing of his wool in T.on don. These charges run from ?d to 2id per lb. It is quite evident that the foreign buyer now prefers to secure his supplies in the colonies and ship direct to his nearest port, thus saving handling

charge?. Up can give more for the wool hero and still land it. in his factory at a lower rate than would be possible if lie bought through liondon.