OUR YORKSHIRE LETTER.

Otago Witness, Issue 3993, 23 September 1930, Page 17

OUR YORKSHIRE LETTER.

COST OF RAW MATERIAL NO BARRIER TO INCREASED CONSUMPTION.

(From Our Special Correspondent.) BRADFORD, July 17. The standing of wool values is again being brought under review: Until a year ago buyers and users had become so familiar with such values as. were ruling during and after the -war that very —little attention was paid to the possibility of prices coming down to the level at which they now stand. It is 10 years since 64’s tops were selling at 13s, but the contrast with to-day’s price is none the less striking, and as 64’s tops are now selling around 27d it is not surprising to find that many are wanting to know the cause of such a slump. Top values to-day are actually below the 1914 level; but the matter of supreme importance is whether they will fall any lower, and whether at to-day’s level the consumption can develop, wholesale fabric buyers being induced to place extensive orders for next season’s goods. So far 1930 has been a bad year for every section of the industry, and if between and Christmas there is no recovery money will be lost on last season’s imports. Also Australia is experiencing one of the best seasons for woolgrowing ever known. As shearing is now beginning on scores of large stations, preparations will be on the way for the selling season which will commence at Perth on September 9. There is no need to anticipate any shortage of wool, as supplies are likely to be abundant, and it is all the more important to have some assurance that big consumptive requirements will develop. CLEAN SCOURED COSTS.

Since last writing the fourth series of London sales have been continued, and the trade now has a very good idea about therstShding of the raw material. This week there has been a big offering, including all qualities of merinos and crossbreds, and. the movement of prices is a reflection of what has happened in Australia and New Zealand from last February to the end of May. Many clips are being offered which have not previouslj’ been seen in Coleman Street, but competition is quite as good as anyone can expect. The chief cause for regret is that the home trade is unable to make a very definite challenge to Continental competition for the best lines of Victorian and New South Wales greasies. West Riding buyers are, however, competing well for the crossbreds. It would be possible to give any amount of detail showing how the various descriptions of wool are selling, but the most useful information is an outline of clean scoured costs. These have been worked out as follows:—

Swiss, Alsace, and Tourcoing spinners are buying good merinos fairly keenly. Apparently they have a market for both single and twofold yarns, which they are known to produce in big quantities. One or two West Riding spinners are apparently challenging the Continent w-hen super Geelong and New England greasy -wools of super 70’s and 80’s qualities are offered, whilst France is taking considerable weights of fine crossbreds. America is not so active as last series, wools being wanted for New England mills at Id less than last series. No doubt allowance is now having to be made for the increase in the import duties. So far as crossbreds are concerned, Bradford buyers realise that there is no need to force the pace, there being adequate supplies of greasies, slipes, and scoureds. Broadly speaking, wool values may be regarded as sound. It is impossible to say whether prices will be lower between now and the end of the year, that depending entirely upon the state of trade. It may be asserted confidentially, however, that art its present price wool should be a profitable commodity. If current purchases can be handled profitably, renewed operations will be possible on at least a corresponding basis. CONDITIONS IN BRADFORD.

Complaints are quite general about the failure of business to develop on anything like adequate lines. The Board of Trade returns present a very unsatisfactory record for the first six months of this year, there being big decreases in our exports of tops, yarns, and woollen and worsted fabrics compared with the first six months of 1929 and 1928. This is only too plainly indicative of a persistent decline in turnover. One of the painful sights in the city of Bradford is to see what a large number of people are either standing at the Labour Exchange doors or walking about in the streets with nothing to do. So far as trade is concerned, the chief trouble now' is that a good deal of financial stringency is being experienced, and whilst reports from London indicate firm prices for the raw material in that centre it is impossible to realise corresponding prices for the combed article here. Various estimates of the cost of wool in the top are given, but the ideas of some attending the sales are around 27id for an average 64’s, and yet it is not easy to sell at more than 261 d. Warp wools are perhaps comparatively a shade cheaper than average owing to the concentration of Continental competition on the latter, but it is quite evident that better prices for tops are needed to enable the wool to become a paying proposition. No doubt the chief cause of all the trouble is the inadequacy of ultimate consumptive requirements. Even yet the fact is being impressed upon many members of the trade that serious harm has been done by the recent strike, business having been lost which may never be replaced. Meanwhile combing machinery engaged on merinos is keeping fairly busy, but the

situation in crossbreds is extremely disappointing. Merino topmakers are being severely hit by the declining tendency in noils. Very low prices are having to be accepted in order to sell at all, and with top prices having been so weak there is increasing difficulty in realising a margin in spite of the decline seen in wool. MARKS AND PRICES.

The following is a selection of merino and crossbred clips sold this week in London:— D/Winton (N.S.W. Wool).

Quality. d. Quality. d. 70’s warp .. 26 58’s average 17-17J 70’s average 25 56’s good . . 17-175 70-66’s 25 56’s average 17 66’s . . .. 24-241 54-52’s 15-15J 64’s warp . . 24 50’s 135 64’s average 23 48’s 13 60’s super .. 21J-22 46’s 125 60's average 21 44’3 . . 12 58’3 good .. 18 40’3 lli-12 VALUES CONSIDERED SOUND.

Greasy Wool. W tp O ? o rt ? Description & Quality. CD O OT op o wo Per lb. Per lb. d. <1. AA E., warp 64-70’s, slight burr 13J 24 A E., warp 64-70’s, slight burr 13J 25 AA combing E., warp 66-64’s 13 22J A combing E., warp 66-64’s 125 22 AAA E.H., warp 64-70’s 13 23 Boolcarrol/HF (conj.) & Co. (N.S.W. Wool.) AAA combing E., super warp 64-66’s, burry 135 24 AAA combing E.H., warp 6466’s 13 AAA combing W.H., warp 6466's, part 70’s 13 23 AA combing W.H., warp 6466’s, part 70's 13 23 Severn/K (N.Z. Wool). Super halfbred, 56-58’s 115 175 1st halfbred, 56-58’s . . 11 18J Superfine crossbred, 54’s Hi 153 Super three-quarterbred, 5250’s 105 131 Super Leicester, 48’s . . 9S 125 Macdonald/Downs (N.Z. Wool) AA fine halfbred H., deep 58’s 111 18 AA fine halfbred E., very good 58’s, part 60’s . . 123 20 AA fine halfbred E., 58's carding _ •• 121 19 A fine halfbred E.H., 56-58 s preparing 11 173 A fine balfbred E.. 56’s, touched with 58’s carding 103 i' 7-163 A fine halfbred E., 56's, touched with 58’s carding 101 165