COMMERCIAL.

Poverty Bay Herald, Volume LI, Issue 16918, 24 December 1925, Page 6

COMMERCIAL.

WHEAT CONTROL. TO BE DONE AWAY WITH. (Pet Press Association.) ASHBURTON, this day. The Hon. W. Noswortliy informed tbe president of the mid-Gantcrbiiry Farmers’ Union at Ashburton to-day that Cabinet had decided that there should be no wheat control after the 1925-26 season. FALLING FRANC. FRENCH WOOLBUYERS AFFECTED SYDNEY, Dec. 16.—Australia has much more than an academic interest in the falling value of the franc, which, on latest advica from London, has touched the further low recbYd of 134.05 lo the pound. France is a. big buyer of Australian woo). French buyers have hern t lid mainstay of llie market since the rpoperiing of sales last duly. II is feared, however, that French support mav tend to lie withdrawn owing to (lie depreciation of the franc. At the Brisbane sales yesterday tbe market was 10 per cent! to 15 per cent, lower compared with the last Brisbane* saints. French competition is reported to have i weakened. Germany was the best buyer. French wool buyers have all their money in sterling. They have been furnished with sterling credits for the wholo of the season. The fall in the franc, therefore, does not affect the funds available for purchase of wool. WJiat it docs is to raise prims in France, and restrict domestic as well as export demand for the manufactured article. A settlement of French financial affairs would remove what is practically the only disquieting feature in the wool oullook.

PRICE,S FIRM. LONDON WOOL TRADE. LONDON, Nov . Hi. —Cables from overseas are still influencing the. course of trade, a good deal of tho firmness in prices being duo to that cause. Early last week a Sydney message sqid that values wore a shade weaker, while another from Melbourne indicated that. French buyers were quieter. Private cables do aol suggest anything of the sort, for clean costs in Melbourne especially are higher than in the previous week, and there -is still evidence of sufficient buying power in all Colonial selling centres to absorb all the offerings. South African cables show rather more irregularity, but it is high time Franco bid for wool more in harmony with other selling centres, such as Melbourne and Sydney, for Capo prices have been 3d to 4d for clean lb higher than in Australia, and there has never been any justification for this. The frantic buying in Australia, New Zealand, and South Africa from October to December of last year has cost the trade millions sterling. There is nothing worse for the textile industry than high-priced tuw materials, and however good the French trade may be, there appears to be no necessity for the pace to be forced any longer. Throughout the entire industry, from the buyer of the raw material'to the retail purchases of clothes, a strong desire is expressed for a steady market, the upheavals of recent months driving many firms to support substitutes, because they can be bought month in and month out at the same price. However, it would seem for the time being as if tho rise in wool has expended itself. SALES IN NEW ZEALAND. To-day a now selling season starts at AVcliington, Now Zealand, and during the next few weeks important sales will be held in the Dominion. A rise of 10 per cent, above last London sales’ closing values is mentioned as being the standard for the purchase of the new clip, and it is enough. True, crossbred wool has been sold at .1:5 per cent, above last sales’ closing prices, but it savors more of a famine price than a reasonable deal. It is understood that far more wool will be available at the forthcoming London sales than was generally expected, and once that big event comes along any urgent requirements of the trade will soon bo met, while we may expect direct imports to arrive before long in Increasing quantities. There is now no longer any shortage in wool supplies in Ronbaix-Toureoing, and therefore all forcing tactics, which have been very much in evidence during the past six week's, can cease with real advantage 1o the entire wool textile industry. Tn the AVost Riding the majorilv feel that, values arc safe for llie presenl, but there is little faith in tlioin being maintained with tho turn of the year. There seems no reason why a steady market; need not then lie expected. At the forthcoming London sales there is absolutely no necessity for prices to be forced sinsibly- higher only to fyid when the wool is bought that there i,s a decline. The Russian buying G becoming nn important factor in the trade, for further big weights have been purchased in Bradford during tho past week, and it is understood that similar big quantities are also being bought on the Continent.