THE FIRST WOOL SALE.

Southland Times, Issue 19099, 17 November 1923, Page 4

THE FIRST WOOL SALE.

Whilst it was generally anticipated that this season’s wool sales would open with much more favourable prices than have of recent years ruled for the fleece, no one hardly anticipated that the market would exhibit such a gratifying buoyancy as characterised the first auction held at Christchurch on Thursday last. “Better than anyone anticipated,” seems the correct phrase with which to sum up proceedings, which must be very gratifying to growers, who can now await the ensuing sales with confidence and eager expectation of the opening prices being maintained. The full and representative bench of buyers at Christchurch indicates that purchasers are after business and, having orders to fulfil, are prepared to pay increased prices so as to complete their contracts. With competition coming all round in a remarkably free manner, the omens are propitious and are calculated to hearten even the most pessimistic. That the enhanced prices are the reflex of the conditions ruling in the Home markets is proved by a perusal of reports of recent happenings in London and Bradford. Since July, when prices first made an upward bound, the market has maintained its buoyancy, competition being well sustained. By the September sales, crossbreds, fine and medium, showed a five to seven and a-half per cent, advance on July rates; lower sorts showed from par to a five per cent, advance and scoureds and slipes from five to seven and a-half per cent, increase. For Dominion growers, the demand for crossbreds was a particularly pleasing feature, even though it was due to the fact that the people of Europe are unable to pay the high prices asked for Merino fabrics. In the October series of sales, another advance was evident and since then cabled reports have indicated the existence of a firm market. "Will this desirable condition be maintained? That is the question which most growers are pondering over. Certainly, the indications prompt an affirmative reply. There is an existing deficiency in the world’s wool supply, and that can have but one result—spirited competition with its accompaniment; good prices. According to Dalgety’s Annual Wool Review, which was only issued this week, the consumption of Australian, New Zealand and Argentine wool during the season ended September 30, 1922, was greater than the clips available in the present year by at least 500,000,0001b5, and there is nothing to set against this very great deficiency, especially as Bawra stocks are on the point of exhaustion. Commenting upon this large shortage of 500,000,0001b5, Dalgety’s Review writes:— Thus represents a deficit of about 15 per cent., the consumption having apparently reached 3,300,000,0001 b per annum, against a total wool production for the world of not more than 2,800,000,0001 b. These figures appear to be startling, but they are not unexpected by those who have carefully studied the wool position during (he last ten years. We must accept it as a fact that the production of wool in North and South America is less than ten years ago by at least 250,000,0001 b per annum, and that the consumption in those continents is approximately 150,000,0001 b per annum more than it was then. There has been a large diminution of production in Russia, which is about off set by a corresponding reduction in their consumption. The decrease in consumption in Central Europe, which was the factor that produced the accumulation of supplies, has for a time at least been succeeded by the return of Germany to the position of a very large consumer, while the diminution in Austria and Poland seems to be outweighed by a moderate increase in a number of the smaller consuming countries. Here we have the uncertain German factor entering into calculations, but even allowing a liberal discount in their requirements, the fact remains that the supply for some time to come will not be equal to the demand. The wool-growers seem to have | definitely turned their backs on bad times and are now entering upon a period which will be marked by spirited bidding for their products. That presages better times ahead.