THE WOOL TRADE

Poverty Bay Herald, Volume LXIII, Issue 19131, 28 September 1936, Page 10

THE WOOL TRADE

AUSTRALIAN REVIEW MARKETS' HOOD TONE .SOUTH AFRICAN VALUES SYDNEY', Kept. 19. Jii all quarters the demand lor wool ims displayed wider distribution this iveck. rSnsbano auctions attracted excellent, coinpeiition trmn .Yorkshire and Herman buyers, France bought wit 1 1 improved ireedom. Italy, uelgium, and Australian millmen .wore active, ana America also operated. The. only missing factor was Japan, bales have uecn helu lit l apetown and Port. Elizabeth, South Africa, and Japanese purchasers bought &) per cenl of ihe offerings in those two ! centres, Uennany and France also eompeung. Values on the floor, South African moves, were higher than recently in Australia. At .London sales Yorkshire and the Continent supplied good competition, prices lor good merinos showing a slight upward trend on the English sales winch closed on July 17 last, j'aulty sorts were shgihtly easier, but crosshreds advanced «) to 10 per ca\i. At the English auctions in July active. Russian buying was ail appreciable market influence in addition to the English and Continental sections, and the" results of those sales restored conscience in prices. The Japanese situation over the previous month bad produced general nervousness. The general buoyancy of values at present should assist materially m .sustaining coutidenco among consumers.

Japan's desire to obtain wool is responiible lor the relatively higher level ol

1 values at African auctions. Her marked activity so far in that quarter has certainly diminished the opportunity fot Continental and English buyers to obtain supplies of the African, staple. Whilst Japanese operators are not, likely to continue buying the exceptionally largo proportion of the African offerings (hey have to dale secured, the effects of their purchasing enhance prospects for an increased volume of buying by Yorkshire and the Continent in Australia. Sooner or later the basis of prices in Africa and Australia must come closer to parity.

Japan will not pay more for wool in Africa, than is dictated by the strength of coinpeiition, and a. reduction in orders from elsewhere would give her the chance to bring her operating limits closer to world basis.

In Australia, hopes are field that. .Japan will again (my with fair freedom in the Commonwealth'. A feeling exists among some growers to. refrain from offering their clips in anticipation of higher prices for burry. topmaking wools if Japanese purchasing is again experienced. Probably prices would show some rise, owing to competition from that quarter, but it is well to remember that other factors can also play a part. France by way of example is in an unsettled condition, "and the absence of demand from that quarter would affect prices. Considerable truth exists in the statement made by a member of the local wool trade that if Japan I were bidding in Australia all concerned I would "bo satisfied to accept quickly (he prevailingi scale of prices. ENGLISH MILLMEVs PROFITS

English manufacturers have bought rcely at this season's' Australian wool

sales. Their monetary results of last season should have given them good. "heart" to continue buying. Profits of some concerns have already been recorded in this column. For the year ended June 30 last, Isaac Holden and Sons, wooleoinbcrs. Bradford, showed a profit, after allowing for income tax and depreciation, of .C 40,740, 'compared with £33.032 a year before. The dividend ou ordinary shares for the year was 13$ per cent, compared with 11-J- per cent for the two preceding years. Kelsall and Kemp, j Ltd., flannel and cloth manufacturers,! made a. net profit of £44,533 against £20.739 a year before, and paid a 5 per cent dividend for the year. Woolcombers Ltd. paid an interim dividend of 5 per cent, a similar rate to a year ago. On. the merchandising side good profits 1 have also been made. Prices Tailors, proprietors of the Fifty Shilling Tailors, disclosed a net profit' of £444 ; 500, an increase of £IOI.OOO on the preceding 12 months. The ordinary shares in "this concern are held by Prices Trust Company, and enabled it to declare a dividend of 30 per cent on the ordinary shares. Chain store tailors are evidently highly profitable trading establishments, despite Ibe low price apparel which they .sell. During the ensuing 12 months with the increased business likely to be recorded in the United .Kingdom, owing 1.0 the Coronation festivities, millinen's and traders' prospects of profitable business arc further enhanced, provided Ihe wool marked does not show serious fluctuations.

I BRADFORD TURNOVER Returns issued by the Bradford Conditioning House show that the weight of goods handled during July was 7,984,73811). being 2,124,6621 b more than in June last, and 309.7641 b more than in July, 1935. The tops handled totalled 5,7M„5951b, an, increase of 1,657,0541 b on June, and being 561.5991 b greater than in July a year before. From January Ito July 31, the total turnover was 50.456,-55-9lh, a decrease of 11.596.4431 b on the similar seven months of the preceding year. The tops dealt with for the period were 35.106.7741 b, a decrease of 3,077,2031 bon the 1935 figures. Reduction in the quantity of wool tested was the chief cause of the decrease in the total turnover. In the previous year, 'Germany was a very extensive buyer of treated wool in the United Kingdom and her purchases were much curtailed in the early months of this year. Though the Conditioning House returns show a decrease for the seven months, business brightened considerably in July. Indications point to smaller stocks of wool in Great Britain, and they are. confirmed by active Yorkshire buying ill Australia, this season. The quantity of wool on hand in London, warehouses at the, close of June was 14.000.0001 b Jess than a year before, and the total stocks in London, at other ports, canal and railway depots in Yorkshire were 15.000,0001b' below the June, 1935, quantify. Evidence of Yorkshire buying is supplied by the shipment this week on the City of Manchester direct, Sydney to the United Kingdom, or 22.686 bales of wool, the largest quantity taken in any one vessel since the war. GERMAN TURNOVER

Since this season's sales commenced, Germany has been an active competitor. The improvement, in competition from that quarter has been particularly opportune. It is largely due to the small quantities of raw material and tops on hand in the country. Stock's of tops at the close of June were, only one-third of those held a year before. The retained imports of wool from January to June were only 164,000,0001 b, being 80.000.0001 b less than for the similar period of 1935 and 115,C00.0001b less than in 1934. Imports of tops for the half vear were, onlv 6.341.0001 b, being one-fourth of the 1935 total, and imports of varus 7.861.0001 b. a decrease of 2,991,0GQ1b\ Those figures indicate a need for wool supplies in Germany and mill activity has been haninered owing to the lack of raw wool. Zellwolle is being utilised freely as a substitute, hut the sheep's staple is also' essential for the. production of satisfactory mixture fabrics. Internal trade has! been fairly satisfactory and improvement