WOOL AND MEAT.

Poverty Bay Herald, Volume XLI, Issue 13306, 16 February 1914, Page 5

WOOL AND MEAT.

REVIEW FOR YEAR AND PROSPECTS FOR 1914.

The Bank of New Zealand's produce circular, dated London, January 5, contains \tho following:—

Wool: The gross qOantities ol colonial wool arrived during the course of the six series of sales for 1013 were as follow:— New Zealand 521,166 bales, New South Wales 220,993, Queensland 137,221, Vie-, torian 843,891, South Australian 7u,059,' West Australian 08,172, Tasmanian 20,376; total Australasian 1,287,878, South African 358,350. The arrivals from ; New Zealand are lighter than the previous year by j 112,162 bales, and 82i772 bales less than I the. year 1911. The year which has Just closed may, we think, be regatded as ; satisfactory, at any rate from the growers' point of view. The average value per bale is m excess of 1912, fluctuations have been remarkably small, ahd although wool is slightly cheaper than at this period last year, it still stands at a relatively high figure, which must be very remunerative to growers. The same, howI ever, cannot be said regarding tho buyers and speculators; rto them it must have I been sadly disappointing. Although at i the beginning of the _eason there seemed [ to be every likelihood of a really good I year's trading, it is to be regretted that j jts early promises have not been v altogether fulfilled. Market conditions have been again handicapped by political and labor troubles, .but fortunately for the greater part of the last 12 months trade m the Home centres has been so good as to compensate, to a certain extent, for the lack of demand from the Continent and America, which is customarily m evidence. Undoubtedly the trade ,m both France and Germany was seriously affected by the possibility of grave international complications m the Near East, the result being a very great commercial and financial strain m these countries. Fortunately these disturbances are now mqre a matter. of history than anything else, and during the latter part of tho year the situation became more favori able on the Continent, trade" becoming quite good. Once more the demand from America has been 'Of small' '•account, bhsi- | ness .from that' quarter bei__\ for some time reduced to an absolute- minimum. This very important Outlet for wools was , more or less closed, and of course made a considerable difference' to competition at the various series of sales. Now that the tariff question hap been settled it is to be hoped that a demand will be created which will, ultimately be of material assistance m maintaining prices. We cannot, however, expect to see the extreme values ruling for fine descriptions that have been custom_rjr m cohI nection with American competition; Buyers will very likely base their operations on the lines of the home and Continental trades. In spite, however, of these handicaps, values for the greater part of . the year have been m favor of the grower, a fact which clearly shows that the woolgrowing industry stands on a very sound basis indeed. It is by common consent agreed that the world's wool supplies are none too large for the ever-increasing demand. So far as we can sec. at present, something out of the ordintfry will require lo happen before the balance between supply and demand can be reversed, m view fof the many years of good trade m this country it is not improbable tbat we may see a slight falling off m the future. This actually happened during the closing months* of the year, but against this it is pleasing to note that trade on the Continent, particularly from France, is on the upward grade, and better things aro looked for consequent on the finish of the Balkan troubles. The first series of sales opened very encouragingly, merinos being quoted par to 5 per- cent, dearer, crossbreds showing: no -chang-e. Tlje quantity available was 40,500 bales less than at the corresponding series m 1912, "and as the sales progressed prices showed a hardening tendency, until at the finish merinos closed fully 5 per cent, dearer, and fine crossbreds the same; 'medium and coarse descriptions being quite up to the values ruling m December. The New Zealand clip showed to considerable advantage, and was very favorably commented upon, thc^ few buyers from America taking abQUt 9000 bales. Nothing of much importance occurred between the close of the January sales and the opening of the auctions on 4th' March. Trade m this country was good, and on the Continent m a lesser degree, due to the feeling of insecurity caused by the continuation of the Balkan war. Money was also very dear, but these 'adverse influences were more or less put m the shade by the activity which, was known to exist m woollen and worsted mills. \V__?n,thc *sales opened the general opinion was that values lor both \ merinos and trossbreds were higher than at the close ol the previous sales. During the -second week, • however, with scarcely v any American competition, prices for crossbreds fell off about 5 per cent. At this period manufacturers sought to get prices of the raw material lowered, but Were not successful. ''Throughout the sales Bradford buyers Were actively engaged, and this spoke well for the prosperity ahd stabiltiy of trade m that centre. Before the AprilMay sales took phice trade seemed to drag a bit, /still due to the Near .East disturbances', and considerable tension experienced m financial circles. When these sales opened on 22nd April it was generally anticipated that there would bo a steady market for merinos, with the possibility of a slight- dfecline m crossbreds. As a matter of fact the opening was steady all round, and showed no decline whatever. Competition was good, the home trade m particular being a considerable factor m the steady values ruling during the eales.' American buyers were conspicuous by their absence, operating to the extent of only 1000 bales. Towards the end. superior merinos cased off half-penny, as well as fine half-breds, but medium and coarse crossbreds maintained their steadiness, and finished very firm. The way these auctions went proved conclusively that the position of the raw article was on a very sound basis. During tlie interval, before the opening of the July sales, a feeling of depression had crept into the wool, trade. The uncertainty of affairs on the Continent had affected trade m both Germany and France— in particular, Gel*many was feeling the great financial stringency, and the impossibility for such expansion as -makes for real progress! Unsatisfactory as things had become, the July sales opened with flrni prices for all good merinos— poor descriptions, however, were 5 per cent, chqaper. Crossbreds again suffered owing to the lack of American' competition; and showed a decline of about 5 per cent., the result being the holding off the market a considerable proportion of the wools carried over from May. Although very little m the way of business development could be recorded during the interval before the September sales, the month of August being always a. holiday one, 'things on tho whole were fairly satisfactory. Peace had been declared m tlie Balkan States, and this undoubtedly gave' greater confidence to the mavK-t. Tho slight improvement m the money market, although actually there was no reduction m the bank rate, had > also a beneficial influence. Another factor was some inquiry m Bradford on American account, due to the belief that raw wool would be admitted free at an early date. The , sales opened . well, ' and as they progressed prices- ruled yery steady, merinos mostly being well up to July level. Crossbreds also, sold at very satisfactory prices, and showed oh average ■an advance of s*per cent. Durinj-r I the 'few weeks previeAis to the opening of the November sales, trade m this country had become somewhat depressed, but fortunately tho situation on the Continent was more favorable. Competition, however when the sales opened was -less general than usual, this being also 1 flue to the smallness of American demand. With the exception of a few parcels of sllpes for testing purposes, America took little or no part m the buying. Comparing it with the other scries of the year it was disappointing, especially half-way through,; although , during the last few nights tho bidding seemed to becomo more animated. Generally speaking, with the ' exception of the best qualities, merinos must be quoted 5 per cent, lower. Greasy crossbreds were rather more plentiful than usual— fine and medium qualities being 7J to 10 per cent, lower; coarse qualities, which realised former quotations at the opening, weakened later on, and were ultimately 5 per cent, lower. Slipes were In good demand, fine descriptions being a shade easier, but medium and coarse, somei of which were taken for America^ showed very littlo change. Merinos have met with keen competition throughout the year, prices for superior scoured, and greasy again ruling high, the scoureds m particular at the July and September sales realising noticeably high prices. Crossbreds sold best at tho January sales, when" America gave useful support, buying about £5 per cent, of .the New, Zealand > wools catalogued on that occasion. Fine and coarse qualities have sold well, medium sorts being affected by tho unsatisfactory state of trade m yarns with the Continent, as well as by the lack of American competition at the later series ,of the year. Lambs* wool throughout the year found a very strong market, and as usual went chiefly to French buyers, prices generally ruling better than at the corresponding periods of the previous year. Sliped wools, be- ■ ing m plentiful supply, particularly at

the September-October sales, were m excellent demand, the condition of these wools on the whole being well up to the average. , The supplies of this class of wool were 75,000 bales, compared to 70,000 bales m 1912. The New Zealand clip was a good one, the first arrivals opening out m promising style, but later arrivals showed a good deal of seed, and were rather heavier m condition.

Prospects for 1914.— Prospects for the! coming season are unusually difficult to gauge. Trade m this country shows unmistakable signs of slowing , dOwn, but judging by the recent sales m Australia and London it seems as if Continental buyers were looking forward to a good year. ' It is' probable that the trade will r have to deal with an increase of 100,000 bales— hot a serious item— and which should not prove excessive for present requirements, m view of the fact tliat American demand m some form is likely to make itself felt during the coming season. Personally we hold the strongest hopes of the prospective requirements of this great -country. Actually during December Bradford exports to America showed noteworthy increases m anticipation of the tariff reduction on Ist January. The month's total was the' highest sinco 1897, except m the case of dress goods. Looking, then, at the situation as 0. whole, so far as we can judge, there does not apepar to be a likelihood of any great change iii the prices Of jperino wool. ' Regarding crossbreds, ■ however, we are not quite so Optimistic as a twelve month ag6. With fashion tending: more and more to merino, and - the present prices relatively so high, unless there be a strong demand from America, which might alter the whole 'Complexion of affairs, we fear growers wiU have to be content with a lower range of values during 1914. .