OUR YORKSHIRE LETTER.

Otago Witness, Issue 3802, 25 January 1927, Page 14

OUR YORKSHIRE LETTER.

(From Our Special Correspondent.) NEW ZEALAND VERSUS SOUTH AMERICAN PRICES. BRADFORD, November 18. The opening of the season at Wellington directs attention to the New Zealand clip. The trade awaited with more than ordinary interest the arrival of cables, and last Monday on ’Change these formed ■the chief topic of conversation;, All agreed that the results were very creditable —far better than the majority of Bradford firms expected. It appears that there was no wild buying, nothing of the nature that was seen two years ago, and which eventually taught several Brad- ■ ford .firms a lesson they will never forget. At the opening of the season in 1924 ft

f’ odd half-dozen firms cabled to Buy a ew hundred bales at “best prices possible.” This led to competition which prices beyond what reason suggested. This rampage of buying continued right up to the Christmas recess, when a very sharp reaction took place, which cost Bradford millions sterling. Even the importations of 1925-26 season have resulted in no good, and the firm is to be congratulated that has got out of its last season’s purchases without loss. Frankly, ,we do not know who has done this, for, 'as one Bradford topmaker remarked yesterday, they have done no good this year whatever with the thousands ofbales purchased in Australia and New Zealand. It.has been a case of continuing business without margins, and to-day the outlook will have to vastly improve if any good is to be done with the purchases of the last few weeks. However, there is a movement towards hetterment, and with the prospect of the coal strike being settled one feels that things must improve on what has been experienced during- recent weeks. WELLINGTON STANDARD OF ri- VALUES.

Everybody on ’Change last Monday was anxious'to know the basis upon which wool was selling. One leading buying broker, with a thorough Bradford training behind him, cabled that there was “keen competition; America, Bradford, and others buying freely. Offerings very light, wools in good condition. Present prices—4o-44’s (spinners’ style) lid, 4446’s lljd, 46-48’s 12d, 48-50’s 13d; topmaking sorts id less all round, greasy price, first cost, Wellington sale room.” The above was a very satisfactory cable,.. Practical men soon set to work to decipher its real meaning, and I ,set out below in tabular form something of real practical value to the trade which shows the clean costs of wools, delivered Bradford:— Esti- - mated Greasy Spinner’s Topmaker’s clean price. clean clean Quality. yield. price. price.

I regard the above prices as being very reasonable, only Bradford would hare been still better pleased if good 40’s wool had been bought to bring in tops at 18Ad, at which price they have been sold forward, instead of 19Jd. Several Bradford firms during the past three weeks have been doing a little “window dressing” in the hope that their cheap sales would be reflected in the opening of prices at Wellington. However, they will not take a great deal of financial harm, because the firms who have sold forward 40’s tops at 18Jd, 46's carded 19Ad, 48’s 21d, and 50’s 23d will not lose a great deal, if anything. The firms who have accepted these low prices have their own combing plant. This means that they will be able to comb at a good 3d less than a commission comber, and no. doubt they will use some shafty pieces to bring in the tops at the price named. Having set the pace, we may expect succeeding sales to continue at about to-day’s level, for at the moment there is nothing to justify higher prices. — There is no doubt that the reasonableness of values ruling at Buenos Ayres and Montevideo was tire prime factor in inducing the cheap.selling by leading Bradford topmakers during recent weeks. The first clean costs cabled from the two centres named were certainly tempting. At least wool looked reasonable when buying brokers named 16d as the clean cost for 40’s preparing wool. This soon led to bids of Ad less, while several firms made offers of 15d clean c.i.f. Liverpool for 40’s preparing wools, Id more for 46’s, with 48’s at 18Jd. Business has taken place at 15d clean for 40’s, and this week we have received the following clean costs, which are well worth putting alongside those quoted from Wellington:— Clean Costs, c.i.f. English Port. Wellington B.A. & M.V. Quality. price. price.

OUTLOOK FOR TRADE. Everybody is now concerned about the of trade. What Bradford above - everything wants is to see more machinery got to work. That has been Bradford’s weakness for months, and it is bound to continue, until there • is more doing in yarns and piece goods. “ Everybody is very anxious to see renewed demand for yarns on export account. Exports of worsted yarn last month showed a slight improvement on the month previous, but exports for the first 10 months of this year compared, with the corresponding period in 1925 showed a very marked, decline. The export of worsted and .woollen fabrics also declined, the only item showing an increase for the period named, being tops. Even here the decline is very serious compared with the 10 months’ exports of 1924, while if we go back to t 1913 a colossal loss is shown. However with revived trade on the Continent Bradford is bound to participate somewhat m the improvement, and a settlement of the coal strike will be a real stimulus. The above factors are all very interesting to American spinners and manufacturers, and it is to be hoped that it will lead to an increased consumption of crossbreds in United States mills. Of course, all the new wool of a crossbred character now being bought cannot go into consumption before next year, and as a rule Crossbred fabrics are not largely » worn in spring and summer. However, there must be certain avenues of consumption that are always open for crossbreds, and cable news from Wellington distinctly mentions America as being among the buyers. I daresay carding classes will appeal, to American firms the most, for, after all, some very useful yarns can be spun from this class of top. i

One effect of the stabilisation of values which has taken place during the past , w ( t. a^s A s create a rather better outlook for the next series of London sales. Less than a fortnight ago fairly definite prophecies were made that there would be an all-round decline pf 10 per cSfit., but the ..utmost fall now expected is 7 A per cent. The prospect of getting more machinery running is now better than - sc c s , ” een f° r th a past six months, and-; lx fuel supplies become adequate there is

not the slightest doubt that every possible endeavour will be made in that direction. To accomplish this to the fullest possible i tent, it will' be necessary for considerably increased orders to be placed for yarns and piece goodsp but, judging from what is already going on behind the scenes, there is a fairly reasonable prospect of increasing machinery activity. The quantity of wool available for the London series is 137,000 bales, but though this is a fairly big weight, it should not be too much for the combined buying power of the home trade, the Continent, and America.

(For Continuation of Farm and Station see page 19.)

% d. d. d. 40-44’s . . 80 11 161 151 44-46’s . . 78' 111 17.1 16J 46-4S’s . . 70-77 12 18J 17J 48-50's . . 74 13 20 191

d. <1. 48's ..173 173 46’s 16J 16J 44’s 16J 15J 40’s . . 15} 151