HIGHEST OF SEASON

Poverty Bay Herald, Volume LIV, Issue 16577, 18 February 1928, Page 5

HIGHEST OF SEASON

WOOL MARKET STRONG WELLINGTON BROKER’S VIEWS (Special to the Herald.) WELLINGTON, this day. When the wool sales opened in Wellington it was generally suggested that, the prices wero too good to last and that keen competition, largely duo to prompt shipping facilities, was the reason for the excellent start. However, the present sales show an even better average.

“ The sale is the dearest so far held in the Dominion,” declared Mr. R. G. Anderson, chairman of the Wellington Wool Brokers’ Association. “As compared with the rates current in January, I estimate the prices will be advanced by Id to 2d on line wools and Jd to on the other descriptions.” At the tinie .Mr. Anderson was speaking the official' range of prices had not been made up and no other than a rough comparison could bo made between the prices the wool realised yesterday and a month ago- “ Altogether,” concluded the chairman of the Wool Brokers’ Association, ” the salo is most satisfactory for the producer directly and the Dominion in general, because it should result in the distribution in the Wellington district of probably three-quarters of a million of money within the course of a couple of weeks.”

Lambs’ wool, Mr. Anderson noticed, was most eagerly competed for by buyers for France. The finer sorts of wool and Southdowns were in strong demand. For pieces and skirtings there was an excellent demand and the Continental buyers’ limits placed these wools far beyond the purchasing reach of Dominion scourers, who wero able to obtain little or nothing. American competition for superfine, fine crossbred and other wools, suitable for the U.S.A. trade was a most helpful feature of the sale. Japan was in the market, for the higher grade of hoggets wools. GROWERS’ READY SELLING.

No one qualified to do so appealed to be prepared to venture forecasting the future of the wool market, The maxim for the producers, it was agreed, was “Go while the going is good,” aul they appeared to be acting up to it judging by the ready selling and Ihe rarity "of lots being passed in for the failure to reach the growers’ reserves. The prices of wool are admittedly high to-day and a clean sweep is likely to be made of the 27,000 bales offered in Wellington this month, as was the case with the January offering. As it is, the market appears to he strong for the end of the-season.. However. Auckland has over 20,000 bales to dispose of next Monday. Wanganui follows with an equal quantity or more next Thursday, and Napier will have about 25,000 to sell at the end of the month. No limit will he placed on the quantities to he offered during March, but there are seven sales set down for that month and three Of those are to ho held in the South Island. The season officially concludes in Wellington on March 26

BRADFORD SALES FIRM « “ (Australian and N.Z. Cable Association.) (Received Feb. 18, 10 a.m.) LONDON, Fob. 16. The Bradford market is harder for all grades, but business is slow-. Sixtyfours are quoted at 54Jd; GO’S Old, 54’s 43d, 50’s 31$d, 46’s 26d, 40’s 2nd.

WOOL TRADE OUTLOOK. BRADFORD PEOPLE HOPEFUL At the beginning of the new year, according to yesterday’s mail advice from London, prominent personages in the wool trade gave their views to the Yorkshire Post regarding matters of concern to Australian wool growers and the woollen industry generally. Mr. J. R. Pollitt, president of the Bradford Chamber of Commerce, said there was a slight improvement during the last weeks of the old year, and that if only the problem regarding wages can be amicably settled there is a prospect of 1928 being brighter in every respect. Mr. Vernon Willey remarked: — “Why should wo not approach 1928 with confidence? Wool is at a reasonable price. Already more machinery in this country is running, and so tho cheaper our cost and the gernter our power to compete by comparison with other countries. Purchasing power at home and abroad is increasing. Wool is not really threatened by artificial silk. New uses arc constantly appearing—motor car linings, sports wear in an increasing number of countries. Our ingenuity in designs and skill in manipulation is as great as ever. There is certainly room for better organisation in industry, and there is good ground for hope that reason will govern industrial relations. _ The increasing world demand ami improved purchasing power at Home and abroad should combine to ensure satisfactory activities in 1928,” At the recent annual meeting of the Shropshire Sheep Breeders’ Association at Shrewsbury it was announced that dining the year to December 31 last 270 registered Shropshire.? had been exported to North and South America and Japan, the best total since 1920. One member declared Shvopshircs could boat all other breeds in weight for ago. They had proved to he more prolific than any. other breed, and could maintain their condition on poorer pastures than any other breed of sheep. The secretary said it was somewhat alarming to find that the number of pure-bred sheep in the country were decreasing to some extent.

TRADE IMPROVING. In their annual report on wool, Messrs. Schwurtze, Buchanan and Co., the London brokers, state that imports of Australian wool to the United Kingdom were 786,458 bales, against 947,481 bales in 1926. The firm goes on to sav that the new Australian clip will show a considerable decrease, probably of from 200,000 to 250,000 bales. In New Zealand the production should he rather larger, but in South Africa rather smaller. In South America there will probably be a decrease of about 30,000 bales (equal to 90,000 Australian bales). In endeavoring to forecast the future trend of values there are various factors to consider. During tho past year it has been a constant struggle to obtain for the manufactured and semi-manufactured article prices commensurate with those ruling for the raw material. In England trade seems to he gradually improving, and stocks arc low, so a stcadv demand may reasonably be expected.' If Germany has been stocking up, as is generally supposed, she will not need to replenish her shelves to the same'extent next year; on the other hand, with the first of the heavy Dawes payments to meet, she will probably endeavor to cxpoit as much as possible. With regard to France, if once the franc were definitely stabilised, it should create a better demand for homo consumption. In America at the present time, values of domestic wools are much lower than the price at which foreign wools can be imported, but there also stocks are low and consumption is gradually improving, so she may be compelled to import more as the year advances. Italy has been passing through a crisis following upon the virtual stabilisation of the lira (now definitely stabilised), but is gradually adjusting herself to the new level, and the material reduction in wages, during tho last nine months, should enable her manufacturers to take a more active part. Russia, too, evidently requires more Takino' all things into consideration, with wool in limited supply, the firm secs no reason why prices should not be maintained at or about their present level, provided always no serious financial troubles, or industrial disputes supervene.