OUR YORKSHIRE LETTER.

Otago Witness, Issue 3765, 11 May 1926, Page 14

OUR YORKSHIRE LETTER.

STABLE WOOL VALUES DESIRABLE (From Our Special Correspondent.) BRADFORD, March 4. Several items of more than ordinary interest are at the moment filling the mind of the majority of those engaged in the industry, arid none more so than the future of wool values. It is always a subject of first importance, because on the likely movement of prices for wool both spinners and manufacturers have to shape a programme. When a big industry like that of wool textiles encounters two slul ,js in five s it behoves everyone to keep an open eye upon possibilities, particularly so when wholesale fabricbuyers have to be considered in more than an ordinary way. This is very much in evidence to-day, for we have wholesale fabric buyers doing their utn\ost to keep down prices, and on the other hand we have a certain section of wool buyers determined to force prices in an opposite direction. Both can be wrong. We hope they are. We see not the slightest necessity for wool values to rise, and are equally convinced that to-day’s prices, both for merinos and crossbreds, are on a sound economic basis. That is a principle to-day which we want recognising more fully, and not raw material to become like a football, to be kicked hither and thither according as to how one section of the trade wants. There is no need for this, and we hone there will not be any efforts l de to so manipulate markets that any section will at all suffer. THE OUTLOOK. Next week the second series of London sales begins in Coleman Street, when a fairly big weight of wool is to be sold. The trade is anxiously looking forward to the auctions, because they should and will reveal what is actually standing of the raw material. Some are looking for a rise, but we think there is little likelihood of any change compared with last series, and none is wanted. We very much doubt the ability of the trade to sustain enhanced prices. Manufacturing conditions are better thau they were, and it is consumption that is at the foundation of the soundness of merino values. Wool is pouring into consuming centres - throughout Europe at a rapid rate, and the available wool in London and Australia this month will tax the utmost financial resources of the entire industiy. We firmly believe that commonsense is going to prevail. We cannot see fro. x the present state f trade the least justification for higher values; in fact we are certain there is ...me, and it will suit everybody best to see a steady, encouraging demand for the raw material at last sale’s closing prices. The interval has been good, because the last series closed steady and firm, this encouraging a fair measure of business during the interval. This has been reflected during the past fortnight in Australia, and therefore we think there is reason for the general expectation regarding the future. Nobody wants to see prices higher, to be followed by a setback, but a firm, steady, and encouraging trade, with correspondingly firm prices which will stimulate all sections of the industry and pave the way for the further placing of orders for piece goods. GETTING RID OF THE NEW WOOL. Considerable publicity has been given to the big weight of wool that remained to be marketed last January 1 in Australia, the quantity being well on the top aide of 1,000,000 bales. On paper this

quantity looks formidable, and the figures have been read in a wrong light altogether, particularly by wholesale fabric buyers. They think that there is still today 1,000,000 bales of wool to .arket. 'There is no such thing. For two months weekly sales have been held in Australia, the result being that by the end of March something like 500,000 bales out of the 1.000,000 have been disposed of, and altogether at the beginning of this month there was something like 600,000 bales to be marketed. No fewer than 340,000 bales of the balance is to be offered this month in Australia, and we fully expect at the end of March the back will be entirely broken of the Australian clip, the season will have finished in New Zealand, and already the*current clip is over in South Africa. We therefore think that March is going to Lc a critical month, but have every confidence that both for merinos and crossbreds values will be maintained. So long as consumption corresponds with purchases and arrivals, wool values will be maintained, and while there are big arrivals weekly in consuming centres the wool is going forward to the machines and is rapidly disappearing.

AUSTRALIA’S EXPORTS. The trade is indebted to Dalgety and Co. for the list of exports for the first seven months of the current Australian wool year. The figures are very interesting, and are well worth analysing. The shipments were as follows: —

* Compared with the corresponding period of 19*24-25. The above shows that the carry-over last June 30 has been disposed of and shipped, the total increase oi‘ practically 500,000 bales from Australia being significant. It is the writer’s firm conviction that next June 30 the balance of the old clip and all the new clip will have been disposed of, and there will be no carryover of the current season’s clip. This will be r wonderful accomplishment, and shows what can be done when values are reasonable. No doubt the carry-over from the season 1924-25 of 500.000 has helped to steady the market so far, and will certainly contribute n that direction in the near future. Then the increase in the shipments from New Zealand of 19,000 bales also clearly indicates a quicker movement than the year previous, simply because the first three months of 1925 saw a marked set-back in values, which caused many to hold back their clips, and so committed a serious error of judgment. However, the free movement of the raw material to-day is a clear indication of healthier conditions, otherwise the weight of wool shipped would not have been so large. THE FRENCH DELEGATION. Several important business men representing the industry in Northern France visited Bradford last Monday and Tuesday, an opportunity thereby being provided for mutual exchange of views, and such handling of international problems as might be considered necessary for the welfare of the two sections of the trade. 011 Monday evening M. Dubrulle spoke to the members of the Bradford Textile Society, taking the opportunity to emphasise his view that the formation of an international federation to deal wi h questions affecting the trade should be formed. In advancing this, M. Dubrulle lias the sympathy of the Bradford trade, for, in spite of all the complaints made about - French competition, the only idea in airing these is that the said competition should be kept within fair bounds, all the time there being a desire to co-operate in every possible way with France and other Continental countries in the general advancement of the industiy. There are numerous problems which cannot be coped with by any country independently, an understanding of each other's needs and position being necessary. The Bradford Textile Society has rec.gnised this from the earliest days of its existence, and has played a very I active part in brin together the leading members of the trade in this country and across the Channel. The organisation has been successful in other ways, but on this ground alone has fully justified its existence. The membership of the society includes many who entertain very definite views as to what the French financial policy should be. At the same time there is no motive other than to bring the two sections of the trade together on an amicable platform.

From Bales. Increase Bales. Australia . 1,617,000 499,000 New Zealand . 249,000 19,000 1,866,000 51S.000*