THE WOOL SALES.

Southland Times, Issue 18061, 3 February 1903, Page 2

THE WOOL SALES.

The second sale of the series opens in Ashley's Hall at nine o'clock this morning, when about 8500 bales will be offered at auction — a catalogue which has only been exceeded once within the last twelve years at least. A comparison with the two previous years may be made as follows : —

The large catalogue to be offered today is satisfactory in the sense that it shows that there has been no shrinkage in the wool clip this year, but there is good reason for believing that the sale will not bo so satisfactory to sellers as was anticipated a few weeks ago. When the last sale was held the market was buoyant, with a strong upward tendency, and it was confidently expected that wool growers would gain rather than lo3e by the weather having retarded shear ing operations so that their clips were not forward for the opening sale. This opinion was strengthened after the sale by tho continued improvement of the market, prices advancing fully ten per cent, but within the past week there has been a retrograde movement, and the latest cables from London are not reassuring. It is also significant that at the recent sale in Dunedin competition for the coarser grade, of wool — so marked a feature of the first sale here — showed a decided falling off, and sellers to-day must be prepared for a similar experience. This aspect of the situation should cause them to seriously consider the question of breeding. The bulk of the wool grown in Southland ii coarse, the farmers paying little heed to the principles which should govern their methods if wool of good even quality is to be obtained, and arguing, apparently, that any loss in this respect is counterbalanced by weight in mutton. The whole question of breeding is really of vital importance and the material argument of a drop in prices to-day will probably appeal to the farmers with more force than much writing and reasoning would appear to have done. As a whole, the wool to be offered at this sale will bear comparison with the previous clip, and we do not anticipate that the prices will be much, if at all, lower than the values then obtained. The indications are, however, that the buyers have about filled their requirements, particularly of coarse wool, and it may be that they will not be so anxiou . to compete for the class of wool which we have to offer them. The large catalogue will also give them the opportunity of picking and choosing, and it is more than likely that inferior sorts wili not be in keen demand. Those who refused to accept the prices ruling in January will possibly have cause to regret their action, and will see the force of what we pointed out in this place at that time, viz, that the first eale is, in nine cases out of ten, the more profitable for the seller, and that it is generally the wiser plan to accept a satisfactory market rather than hold back on the off chance of an improvement taking place between the two sales. Private buyers have also made a doubtful speculation, and those who have bought largely in anticipation of a rise will, unless we are very far out of our reckoning, be sadly disappointed. As it is likely that a. third sale will be necessary this year, wool growers will again have to decide whether to sell or await another opportunity in the hope that the market will recover. The argument is not favourable to the latter course. Owing to the dispersal of the Home buyers there cannot be the same competition at the next sale, and values may drop still further in the interval, so that we think it would be better for the farmers not to hamper their brokers, with high reserves, but to be satisfied with the fair and reasonably satisfactory prices which they will be offered to-day.

1901 1902 1903 First sale CSOO 3200 3300 Second sale 5900 8000 85')0 12,400 11,200 12,000