WOOL VALUES.

Poverty Bay Herald, Volume LI, Issue 16920, 29 December 1925, Page 3

WOOL VALUES .

TEMPORARY LULL. j SOUND PROSPECTS. ■ SYDNEY, Dec. 38.—Matters in eon- * auction with wool selling have been at a. standstill in Sydney this week owing to the absence of buyers, who have been attending the closing sales of the half- • year in Brisbane. No further business of any volume will be done till the new , year. ‘ Brisbane sales did not throw much , additional light on the wool situation, j There was a big offering, andi in the j main an attractive one, Buyers went . up in very full numbers, many south- j era men attending in addition to Syd- 1 bey operators. Continental.buying was the main support, but, Yorkshire and local users were steady buyers, and: ( Japan helped at times. The,drop in values was estimated at about 10 per cent, on the last Brisbane sales held in November, and in some , eases the fall was nearer 15 per cent, j This does not mean that the wool mar- j Let, is down that much on the Sydney j sales. The basis, as a matter of fact, ! was about the same as Sydney values For the best fine wools, whilst medium ‘ and inferior sorts appear to have gone ; down about 5 per cent. 'j THE MARKET GAUGE. I Reports of wool markets in various centres are apt at times to become , confusing to woolgrowers. The custom | of each centre is to make comparisons . with the previous sale in that centre. Thus London opened with a “rise,” but the advance was not equal to the level of Australian values, and' a simultaneous “fall” hero and “rise” in London was necessary to adjust prices. Then ' Brisbane reported a fall, but it was only a. moderate one on the current Sydney level. Tlio London wool sales, which closed on Wednesday, a day earlier than tho original programme, have proved dis appointing. Not only was the inital vise sufficient to bring prices up to Australian November parity, but as tho sales continued they weakened, and there were heavy withdrawals. 1 FRANCE! AS A FACTOR. 1 There is, however, no justification for , any panic over the wool situation. ‘ Tlio whole strength of the wool position during the past Half-year has rested on the foundation of vigorous French buying. To that section the Australian grower* owes everything this season. Unfortunately, tho financial position in France is at the moment most embar- j rassing, but practically half the clip :s now in buyers’ hands, and a persistent

bear movement is hardly likely to be promulgated. Bradford has bought heavily during file past couple of months, but Yorkshire will want considerably more wool. Private selling of passed-in wool is pcrmissablo in Sydney up to Wednesday next, which will enable buyers lo complete any urgent orders. After that there will be a close season for wool selling in Sydney up to the time the new year’s auctions open on January 11. Any urgent orders for fellmongere<J wool can, however, be dealt with after January 4. The new year sales open in Melbourne on January 4, and in Sydney on January 11. ' THE OUTLOOK. The general trade view is that the adverse influences at present are likely to prove of a temporary nature. That the French section is operating with more caution is not to be wondered at in view of the unsettled stgte* of affairs hi France, both political and 1 financial, and it is hoped that by the time the new year sales open the position will have improved. The English trade has shown considerable improvement, and it has significant that at the closing sales of the London series the Yorkshire section -was active at the lower levels. There is a feeling also that U.S.A. ordters will increase iii the ne\V year, and Japan has considerable wool requirements yet to be filled. No one looks for higher figures, indeed, it is generally recognised that' present troubles are accentuated owing to prices, having climbed rather too. fast, and high prices wouldl certainly restrict trade and encourage the increaShdi uso of substitutes. A record volume of wool has been sold in Australia during the half-year-just closed, and there is still sufficient wool in sight to carry the sales on to about May. The future is ail unknown quantity, of course, but the point may be emphasised that wool purchases have been going into consumption freely, and stocks in manufacturing centres at the moment are by no means excessive. The new year may open witlj brighter prospects, not so much ns regards higher -juices as a, more widespread demand.