THE WOOL MARKET.

Southern Cross, Volume 10, Issue 16, 19 July 1902, Page 6

THE WOOL MARKET.

The New Zealand Loan and Mercantile Agency Co., Ltd., are in receipt of the following cable from their London office :—‘ The wool sales progress firmly. Merino ; Since the opening of the sales there has been an average advance of about 5 per cent, on last sales’ closing rates. Market irregular. Medium and coarse Crossbred : Decline of about 74 per cent. Of late (wrote the Melbourne Leader of July 6th) great reluctance has been shown by the wool growers in the United Kingdom to meet the market with respect to their wool. This policy has resulted in a large quantity of the last year’s clip being still unsold, the trade preferring to purchase the cheaper New Zealand sorts. This unwillingness of the home growers can be well understood, in view of the prices which they previously secured for their product, even when the merino sorts were at a low price. In January, 1873, Lincoln hoggets stood at 28-|d, and wethers at 26d per lb. The prices gradually tapered down until in December, 1901, the former ruled at 7fd per lb., and the latter at 4fd per lb. No doubt the { get np ’ for market in the earlier times was superior to what it is to-day. The wool was formerly brook washed, and this work was done well ; but of late poor prices have resulted owing to perfunctory work, the washing no doubt consisting of a swim through a brook. The results to a grower, it will bo seen, have been disastrous. These prices may in a measure salve the wounds of those Australasian growers who have felt the full force of the slump in the price of the coarse wools.

Next Tuesday (July Bth) the London July series will open, when some 217,000, as against 326,000 bales for the corresponding series last year, will be submitted. The event is naturally attracting the undivided attention of the trade, and those interested in the pastoral industry. Trade throughout the United Kingdom and the Continent, notably France, is in

a good state, but, on the other hand, that of the United States, is lacking in life, owing principally to the results of labour complications, which appear to be still in evidence, though happily not to the same extent. A large clip is being dealt with there, and this tends to quieten matters, though the various markets have responded to the improved condition of affairs in Europe, though not to a relative extent. It is hardly likely, therefore, that much assistance can be expected from this source at the present juncture. If the wool to be submitted represented the whole available for the time being from Australasia it would be safe to say that a material adyance in values would take place, but such is not the case. The quantity forwarded direct to the various manufacturing districts since last series list was closed total some 102,000 bales, and during the past six months the direct business from Australia has been unusually large. This has given the trade a fuller supply than is indicated by the London business. This fad, coupled with the comparatively high prices of the fine wools and the low values for the coarser sorts, makes the position less certain, especially as more attention has been devoted to the medium crossbreds of late. On the other hand, the undoubted shortage in the ensuing clip must exercise a strong influence towards improved values in the merino and kindred sorts. Lbere are elements of a bullish nature in the situation, but doubtless the remembrance of the effects of the last big burst may exercise a sobering effect.