OUR YORKSHIRE LETTER.

Otago Witness, Issue 3995, 7 October 1930, Page 18

OUR YORKSHIRE LETTER.

LONDON’ SALES REVIEWED.

CONTINUANCE OF STEADY VALUES ANTICIPATED.

(From Our Special Correspondent.)

BRADFORD, July 31. A fairly comprehensive account has already been given of the fourth series of London sales, but certain features remain to be dealt with. One of the most important is that the trade generally has confidence in the current level of values. By this the writer means that there is no serious anticipation of a lower level before the next selling season commences. Of course, there arc always some who can never see the bottom. If 64’s tops were selling at 2s, they would be anticipating the time when they should be obtainable at 18d. Fortunately these people cannot exert any definite influence on the market, and many of them do not really believe what they say. Every Continental buyer to whom the writer was able to speak during the series shares the view entertained in Yorkshire that there is nothing wrong with wool at current prices. With any°thing like revival in the industry, everybody would be glad to buy to the utmost of their financial capacity. It has become apparent as the result of the past year’s trade that wool has got down to a basis which can very easily become the starting point of better things It has been repeatedly found the best business has been done in a rising market. This, of course, has its but the writer recognises that wool cannot be grown profitably in Australia at the current level. No doubt a reduction in production costs is part of the remedy for this, for reasonable prices such as we have at. present £ cannot but be inducive to increased consumption, and growers themselves know that it will pay

them better to have a good clip to sell, even if prices are not very high, than a poor one (in quantity and character) for which relatively more money per pound is forthcoming. This is one conclusion forced upon the writer after reflecting upon the recent auctions in Coleman Street. The finish being firm is by no means a bad augury for the sale of the balance of the unsold wool.

The following figures, compiled from information provided by Messrs Kreglinger and Fernau, shows the clean scoured prices current in London at the end qf the first week of the series and at the close in comparison with a year ago:—

BETTER COMPETITION FOR MERINOS.

Perhaps the most encouraging feature seen during the last week was the improvement in the competition for merinos. These recovered some of the loss seen at the commencement, for a few of the home trade buyers saw fit to begin operating. More than one Continental buyer, said

they would have liked Bradford topmakers to come in more freely. It was no. doubt realised that there was plenty of wool for everybody, and that there need not have been any excessive inflation of values, even if the home trade had bought a bigger share. How long the Continent will be able to keep up its present pace remains to be seen. Some of the news received this week from France is not very encouraging, and the financial position in Germany is not entirely satisfactory. All this year the Continent seems to have had the’pull over the home trade, both in buying wool and getting business to keep machinery running; but if the raw material is to show the desirable improvement the home trade will have to develop without any slackening elsewhere. The United States is not buying any substantial amount of colonial wool, and there are indications of a move being made in Canada to encourage the development of its own manufacturing industry. The writer does not think, however, that good greasy merinos are more than 5 per cent, cheaper, the greatest weakness being seen in scoured clothing. During the last week up to 26d was paid for the very best scoured combing, but medium and faulty wools continued to move anywhere from 12d to 16d, and there was sadly too much good clothing scoured merino sold at 16d to 20d. It would have been much better if 23d had been paid for a large quantity of the scoured Adelaides, but those wanting these wools are evidently not prepared to take them unless they can buy at a very reasonable price. This is not a particularly good augury for the sale of this description when the next selling season commenced. QUANTITIES SOLD.

Any figures which show how offerings at the London sales have been distributed are always read with interest by buyers, and are not without their message to growers and sellers. They serve as a reliable index to the purchasing power of the various sections of buyers, not only during the series in question, but also at other sales which may be expected to Ire held. In the present ease the fact that another series of London sales will not he held until the middle of September and that the Australian selling season will not commence until about the same date make some little difference, but the present position with regard to London is that the Continent is credited with having purchased 50,500 bales, the home trade 31,000 bales, and America 1000 bales, a total of 82,500 bales. The wool carried forward totalled 71.500 bales, and of this amount 56,000 bales were not offered.

Continental buyers can be congratulated on the way they supported the auctions. Large quantities of merinos were taken, and their purchases of crossbreds were by no means discreditable. The Continental activity undoubtedly contributed much to the success of the series, notwithstanding that most descriptions showed a decline in price. The following shows the distribution of the purchases at the first four series of this and the two preceding years. It will be seen that the quantity sold at the last series was the smallest this year. On that occasion the total quantity available was 143,700 bales, the quantity for the third series being about the same, but the offerings for each of the two previous scries were about 164,000 bales:—•

July 11. 1930. July 23, 1930. July 23. 1929. 7O’s combing, superior d. fleeces 28 28-29 40 64-67’s combing, good medium fleeces 26 26 36 60-64’s combing, good medium fleeces 22 23 33 60’s combing, good pieces 23 24 33 60’s combing, good pieces 21 22 32 58-60's combing, good medium fleeces 20 20 30 56’s combing, fine crossbred fleeces . . 17J IS 27 50-56’s combing, fine crossbred fleeces . , 16J 16 24 46-50’s combing, crossbred fleeces .. .. 14J 14 21 46's combing, crossbred fleeces .. 13J 13 20 44’s combing, crossbred fleeces . . 13 12J X 19 40 s combing, crossbred fleeces . . 12J 12 19 Extra super Sydney greasy None 42-44* Super Queensland scoured 32* 32* 10-12 months combing Capes 26* 26* 36* 6-7 months good clothing Capes 21* 20* 32* 60-64’s good carbonIslng pieces . . 21 22-23 32 60-64’s carbonising • pieces and bellies.. 20 21-22 31 64’s average locks . . 19 19 28 G4's average lambs . . 20 20 30 * Nominal.

1930. Home Trade. Bales. Continent. Bales. America. Bales. Total Bales. 1st series 51,000 42,000 1,000 94,000 2nd series 58,000 63,000 3,000 124,000 3rd series 41,000 69,000 2,000 112.000 4th series 31,000 50,500 1,000 82.500 1929. 1st series 31,800 49,000 2,000 82,800 2nd series 36,500 43,000 4,000 83,500 3rd series 39,500 52,000 91,500 4th series 31,000 43,500 — 74,500 1928. 1st series 38,000 52,000 2.500 92,500 2nd series 45,500 60,000 4,000 109,500 3rd series 29,500 49,500 1,000 80,000 4th series 26,500 42,500 — 69,000