SELLING OF WOOL

Southland Times, Issue 22215, 6 January 1934, Page 5

SELLING OF WOOL

AUCTIONS FAVOURED

WARNING AGAINST FARM SALES

ENGLISH ADVICE

(United Press Assn.—Telegraph Copyright.) (Rec. 5.5 p.m.) London, January 4. Sir Frederick Aykropd, speaking at the British Wool Federation’s dinner, emphasized Sir Graham Waddell’s warning to Australian woolgrowers to think carefully before selling wool on their properties. If everyone did this, he said, it would be impossible to discover the market price, which was decided by the world demand and consumption. The level was lower than the auction level, as the latter produced keen international competition. Sir Frederick Aykroyd regretted that there were wool sales in too many centres in Australia, as the buyers could not be in two places simultaneously. It would be better, he said, to send more to London where more wool could be sold daily than at any other centre, and there were always plenty of buyers. Sir Frederick Akroyd declared that private buying in Australia had developed recently and greatly increased market costs compared with regular auctions. Dr A. G. Barker described at the dinner the discovery of an unshrinkable wool fabric, also bleaching ingredients preventing yellowing.

A message from Sydney on December 18 stated: The Australian system of wool marketing is menaced, according to a well-informed contributor to the Sydney Morning Herald, who declares that there is a remarkable growth of selling wool on the station or the farm. He estimates that four times more wool this year was sold in country districts by private treaty than last season, a large percentage comprising the best wools, which were shipped direct to miffs abroad. He also estimates that a considerable proportion of the wool sold in this manner was obtained at twopence to fourpence a pound below current auction values. The correspondent contends that this sort of thing is bound to force down the levels at auction and eventually lead to chaos. SYDNEY VALUES CURRENT QUOTATIONS. (United Press Assn.—Telegraph Copyright.) (Rec. 5.5 p.m.) Sydney, January 5. The current wool prices are as follows : Greasy extra super Merino fleece 331 d Greasy Merino, free or nearly Best 26d to 28d Good 24d to 25d Average 21d to 23d Slight seed or burr — Best , 23d to 25d Good 21d to 23d Average 13d to 20d BurryBest 20d to 21d Average 19d to 19Ad Inferior 15d to 17d Lambs— Best to 221 d Comebacks —■ Best to 27 jd Crossbreds — Best to 261 d CHRISTCHURCH SALE EARLY FORWARDING OF CLIPS. (Per United Press Association.) Christchurch, 'January 5. Brokers have had an exceptionally heavy rush of wool into stores for the second Christchurch wool sale,, and it has been found necessary to increase the allocation from 25,000 to 27,500 bales. Although the sale will not be held till January 26, the stores held to-day approximately 40,000 bales. The rush of wool into stores is due in a great measur to the early and dry summer, but is also caused by many clips previously shipped home being offered at the local auction.

TIMARU SALE

OFFICIAL RETURNS COMPLETED

The sum of £193,806 was paid to South Canterbury farmers on the prompt date (December 30) for their wool sold at the first Timaru wool sale of the season, according to official figures compiled by the South Canterbury Woolbrokers’ Association. This amount is the proceeds of 10,634 bales at an average of £lB 2/9 a bale, or 13.077 d a pound. A year ago 9432 bales were sold at Timaru for £74,698, an average return of £7 18/4 a bale or 5.54 d a pound.

NEXT AUCKLAND SALE

PRICES SHOULD BE MAINTAINED.

With the second Auckland wool sale commencing in 10 days’ time, brokers are again actively engaged in arranging clips for the inspection of buyers. Tire sale will commence on Monday, January 15, at 8 a.m. The allotment for this second sale, as fixed by the New Zealand Wool Committee in Wellington before the opening of the season, is 25,000 bales. Encouraged by the increased prices realized at the first sale, many woolgrowers who previously had been inclined to wait to watch the trend of the market have apparently. decided to put their wool into the coming sale. In consequence, the allotment was more or less filled before the Christmas holidays, and since then several thousand bales have accumulated that cannot be offered until the third sale.

According to an Auckland report the wool which is being offered is of good quality, with a high proportion of the better grades. Much of the wool accumulated during the bad years was disposed of at the first sale. The prices that proved so encouraging at the sale in Auckland on November 27 have been maintained at the subsequent sales in the south, and brokers express the opinion that there should be a continuation of the higher price levels.

Recent concern in Australia oyer private selling as tending to undermine the established system has so far not been reflected to any great extent in New Zealand. Those farmers who sold privately to speculators before the last sale were in many cases disappointed when they realized that they would have been better off by taking advantage of the system of public sales. The good prices which are being realized are too tempting for farmers to risk changes in the market by sending their wool overseas for sale. A further aspect that is emphasized is that the wool sales set the standard of prices, and farmers should help to support this measure of stabilization.