LONDON WOOL SALES.

Otago Witness, Issue 3714, 19 May 1925, Page 13

LONDON WOOL SALES.

STEADY COMPETITION FOR THE RAW MATERIAL. (From Our Special Correspondent.) BRADFORD, March 18. The London sales have been continued during the past week, and though there are certain features about the auctions which are scarcely of an encouraging nature, it must be said that when all the facts bearing upon the situation are taken into account the raw material is selling quite as satisfactorily as can be expected. When the auctions opened a somewhat startling announcement was made, this being to the effect that the two last days of the series, for which arrangements had been made, would be cut off. To make such an announcement as this at the very commencement of a series indicated quite plainly the attitude of the selling brokers; and, when all things are considered, one cannot help saying that the policy thus outlined is the best that could be adopted. It is no use whatever forcing wool on to an unwilling market, and the only hope for any real recovery in the raw material lies in the direction of an expansion in consumptive requirements. This is wanted in practically every manufacturing area throughout the world, and until it comes things cannot be expected to be any better than they are to-day. So far during the current series America has kept very much in the background, and it has rested largely with Continental.firms to set the pace in merinos. It is quite true that during the past week there has been some contribution to an improvement in competition by the operations on home trade account, but this has not resulted in any improvement in the selling value of fine wools. Almost innumerable examples could be given, particularly from second-hand parcels, of the strikingly lower level on which values are now ruling compared with the series which closed on February 3. One reason why Bradford has r.ot operated at all freely in fine wools is that the cost of this description is still above a parity with what can be realised in Bradford for the resultant top. When warp 64’s are selling in this centre around 5s 2d the maximum price for a superior combing being 5s 3d, and the cost in London is around 5s 3d to 5s 4d, it is not to be expected that local houses will go in with any real enthusiasm. This, however, appears io be the position to-day. Some allowance must be made for the fact that the price of wool in London always appears to bo more or less ahead of the selling value of tops in Bradford, and judicious blending can also do a good deal to squeeze a profit out of wool which on the face of it cannot leave anything but loss. Apart from these incidental considerations, however, it is a fact that manufacturing conditions in the West Riding of Yoi-kshire, particularly so far as worsted spinners are concerned, are not yet sufficiently encouraging for fine wool to be bought freely in London on local consumption account. MOVEMENT OF CROSSBREDS. The movement of crossbred wools has been exceptionally interesting, there being a development in the oourso of prioes which was scarcely in harmony with expectations. Ibat - fine crossbreds should ease in sympathy with merinos was practically a foregone conclusion, and this was exactly what happened when the sales opened, whilst the good competition on home trade account along witn the scarcity of preparing wools helped to maintain these on a comparatively better level, though not obviating a decline of around 7| to 10 per cent. At recent isles, which have included some

decent lines of crossbred wool, low qualities have been obtainable at slightly less money than was paid at the opening, and, so far as one can judge, this has been due to the buying on home trade account not being followed up by other local competitors or by Continental houses. It is understood that during the early past of the series one or two local houses operated extensively in medium and low crossbred wools, ana, these requirements having been filled, it remains for .new inspiration to come from some source which is not yet apparent to give a further impetus to prices. It has been stated that during tho last day or two competition for New Zealand crossbred wools has again shown some little improvement, but prices have certainly not recovered, and, indeed, are on the easy side. As will be seen from tho figures below, the reaction in crossbred* in London is nothing like as serious as what has taken place in merinos; but, compared with what was paid in New Zealand during that memorable period of excited buying, prices in London now look very unsatisfactory indeed, and serious losses are bound to be incurred on the wools bought at tho highest point. Within the la*t week or two medium and low crossbred tops have been sold in Bradford at very low prices; and though- this cheap selling appears to have passed, having no doubt been necessitated by financial considerations, value* are not likely to get back again, certainly not at an early date, to a parity which will leave a profit on the dearest wool purchases. CLEAN SCOURED COSTS. The following table, compiled from figure* provided by Messrs Kreglinger and Fern a shows the present movement of leading descriptions of the raw material in London compared with the close of the two previous series: Dec. 12. Feb. 3. Mar. 13. Description. Per lb. Per lb. Per lb.

SOUTH AFRICAN WOOL. The discredit which formerly attached to South African wool has been very largely removed. Ever since the Boor War. there has been a gradual progressive tendency, and even since the Great War further developments have taken place. A generation of wool-growers has sprung into existence which, under educational influences, entertain more modern ideas about wool-grow-ing and sheep-culture, and this generation has been encouraged in its efforts to produce better wool By the good prices whioh have been forthcoming. It now remains fop the good foundation which has been laid to be built upon by every Cape grower. With *uch an interested Government which reoognisea that wool-grow* ing is a valuable financial asset to the country, there is scarcely any limjt to the progress which oan be made in woolgrowing in South Africa. It is only relating a fact which i* well known to everyone to state that the great fault of Cape wool in the past has been lack of length in the staple and excessive condition. It i* indeed a groat improvement in Utter, when instead of giving generally only 38 to 40 per cent, clean yield, (Jape olips oan now be frequently found which give over 50 per cent, oloaft scoured. In toe pest Cape wools have beaft

very unreliable in the matter of yield, the ! clean scoured results often being found to be less than was originally anticipated. Even in the old days, when wool was a much more reasonably priced commodity than it is at the present time, a difference of 1 per cent, in a big weight of wool could : make all the difference between a profit and a loss, and now when fine wool is costing twice as much as before the war it is- obvious that the clean yield which Cape wools will give is a matter which has not by any means become minimised in importance. It has consequently been with exceptional interest that many members of the Bradford trade handling Cape wools have heard of the claim made by Mr A. G. Michaelian, the South African Government sheep and wool expert, now visiting this -country, that the extra id per lb which commission combers in Bradford charge for the manipulation qf Cape wool should be taken off. 'plough the claim deserves sympathetic consideration, it is yet too early—to say that Mr Michaelian has all the right on his side. He has stated that his approach to the question is based on a broad principle. He wants to know why, if foreign wools of no better yield than Cape can bo imported into this country and combed without extra charge, Cape wools, which are a product of the British Empire, cannot receive equally reasonable treatment. has fallen back upon the many arguments h© has heard in favour of colonial preference and the protection of Empire industry against foreign competition, and argues that the setting forth of these principles is inconsistent with the extra charge of id per lb for combing which is put on Cape wools.

d. d. d. 70’s super, combing fleeces 85 77 67 64-67’s good medium combing fleeces .. 77 70 GO 64’s good combing pieces 73 66 57 36’s fine crossbred combing fleeces 57 50 44 46’a crossbred combing fleeces 35 33 29 8(£40’s crossbred combing fleeces 30 28 26 10-12 months’ combing 78 No sales *56 60-64’a good carbonising pieces G8 60 49 64’s average locks .. .. 58 • Nominal. 51