ENGLISH WOOL MARKET.

Poverty Bay Herald, Volume XLIX, Issue 16175, 11 July 1923, Page 10

ENGLISH WOOL MARKET.

CROSSBRED VALUES AGAIN IN THE BALANCE.

(From Our Special Correspondent.)

BRADFORD, May 30.—The lull in business continues, and although there is a feeling that the wool position is fundamentally sound, yet demand for tops und yarns is so restricted that neither topmakors nor spinners can do business on current values. The last series of colonial wool sales in London established a basis which seems to bo completely beyond users in this country. In the circumstances everyone appears to bo determined to follow a waiting policy, and there is very little chance of much development until the wool market has again been tested. Topmakers have never been able to make prices anywhere near the cost of tops made out of wool bought at the last series of London auctions, and although quotations are nominally unchanged, there is a decided tendency in buyers' favor. Concessions are obtainable in most cases and for practically every quality, but there is not enough business passing to seriously test tho market. In the spinning section the immediate outlook is beginning to cause some anxiety. It is recognised that unless demand improves considerably there will be a lot of short-time working, atid with the object of keeping machinery running; several firms are accepting exceedingly low prices. This under-cut-ting is being resisted by spinners who are in a comparatively sound position, but with such wide differences ill quotations as are commonly found to-day it is difficult to say how values stand. Apparently everything depends, on the position of the seller, and, as many are weak, it is essentially a buyer's market. THE CAUSE OF THE TROUBLE.

The present unsatisfactory state of affairs in Bradford dates very definitely from the occupation of the Ruhr by the French. Up to that time business was developing very satisfactorily, unci spinners had sufficient work in hand to keep machinery running for three to four mouths. During the last four months, however, new business with tho Continent has dwindled considerably, nor is this to be wondered at in view of the fact that Germany is recognised as the best customer of this country for tops and- yarns. Tho advance in wool values in London was entirely due to Continentau and American competition, and spinners and manufacturers in this country, therefore, have been faced with dearer raw material and at the &amu time a restricted outlet for their products. Moreover, tho depreciation in the franc has enabled Franco,to undersell all British manufacturers in. , tho homo markets, and the same cause combined with lower conversion costs has resulted in Continental spun yarn being offered in Leicester and elsewhere at pence per lb. below the prices quoted by West Hiding spinners. lb is obvious, therefore, that more settled conditions on the Continent are absolutely essential if this country is to regain its normal share of the world's trade. It is true that some of the overseas markets, and especially tho Far East and the colonies, are showing more interest in Bradford made goods, and while this doe a not compensate for the great loss ol trade with the Continent, there is still a general feeling of confidence in the soundness of the merino position. RAW MATERIAL PROSPECTS.

Many not bo surprised if a decline in values takes place in merinos and crossbreds, although we do not think wool users in this country will be able to exert much influence in this direction. While everywhere appears to be very quiet, wo are satisfied that consumption is proceeding on a sufficiently big scale to absorb tjie merinos which are likely to be available this year. The home trade is in a very pessimistic mood, and wo only hope that it is not being overdone. It is true that pieco merchants are buying more than they actually need, but a nice export trade is being done and there is a. bigger demand for cloth from our colonies, all tho direct outcome of tho satisfactory prices ruling for wool. Wlien growers are making good values for their Wool they spend their money more freely, and there is also a sensibly improved demand from South America. The trade with tho Par East is keeping up; big shipments are being made this month, and preparations are being made for further shipments in Juno and July, all for next winter season. We are, therefore, inclined to think that the trade in pieco goods is not ho bad as many are wanting to make out. Of course, the cold Bpraigls retarding homo business, but in the aggregate consumption appears to bo quite largo enough to absorb all merino supplies.

Orossbreds are moving tardily, due largely to tho lessened call on tho part of America for matchings. At the same time the market is not entirely void of business. It is quite, true that, Boston houses have cabled offers to Bradford offering 40's to 64's wool, including some Capes, but when all is said and done this can only bo taken as indicative of some dealers' desire to realise in view of tho slackened demand in America. Mills in tho United States continue to bo fully run, and so long as the manufactured article is distributed there need bo little fear felt respecting the manufacturing industry across tho Atlantic. There, as well as in Bradford, it seems impossible to make wool prices tit with the market value of tops, yarns, or pieco gods, and that is the outstanding anomaly which presents itself everywhere, except on the Continent, where it is known that stocks are in small compass; hence we may expect to see a steady demand from that quarter. OUTLOOK FOR CROSSBREDS. A sale of 25,030 bales of Bawra wool will shortly bo held at Hull, and considerable interest is being shown in the probable course of values. Practically the whole of the offerings will be crossbreds, and more suitable for the home trade than anywhero else, though there will probably be a little buying on Continental account. Tho homo trado is, however, likely to bo by far the largest buyer, and the general opinion is that values will show some decline. It is most regrettable that the home textile trade is so depressed, and unless competition from outside sources is stronger than appears likely at tho moment, it is quite possible for the advance at the last London sales to bo just about wiped out. These irregularities in the movement of the raw material do no good to any section of the trade, and the market being so sensitive, contributes seriously to the prevention of developments such as are greatly desired. The Australian Wool Realisation Association

will bo strong enough to create feelings of greatcd confidence in the luturo of raw material. We are of opinion that there i* no justification for any further advance ill either merino or crossbred wool values, but are equally convinced that the present is not » suitable time to cry down values or to make pessimistic prophecies respecting the future.

Sales of Wool will bo held almost continuously iu this country during the next seven weeks, auctions being arranged to be licit! in Hull, Liverpool, and London, followed by another Hull sale immediately after the close of the London series. We think it will be advisable to abandon the latter Hull side for it will bo a mistake if wool is forced on to an unwilling market. The Bawra will get rid of all their merinos at the Liverpool sale in a fortnight, and then tho trado will only have second-hand parcels to go at. We understand that some wools have been returned from America for sale at the forthcoming London auctions, but the quantity cannot be largo. If patience is exercised America will be able to utilise all her present stocks and considerably more. In tho meantime consumption remains about on the same level.as a month ago. We are certain that there is more doing in pieces on export account than the majority will acknowledge, and though the trade is not all that could be desired, it is no exaggeration to say that the present turnover is at least of moderate dimensions.