“POSTPONE WOOL SALES”

Taranaki Daily News, 25 January 1930, Page 11

“POSTPONE WOOL SALES”

SUGGESTION OF AN EXPERT . I BETTER PRICES LIKELY LATER. , DELAY WOULD CLEAR MARKETS. By Telegraph.—Press Association. Invercargill, Last Night. A suggestion that is likely to give rise to a great deal of controversy throughout New Zealand was put before a reporter today by an eminent local authority bn the wool question, who declared that in view of the present unsatisfactory state of the market all forthcoming wool sale fixtures in New Zealand should be postponed until the market has again become stabilised.The informant, who has had many years experience in handling wool, declared that his suggestion was perfectly logical and would be viewed with favour by many connected .with the trade. ‘II feel that the time has now arrivedwhen in the best interests of the New Zealand wool growers, brokers and financing institutions it would be a wise development to discontinue further selling for a few months,” he said- “This would enable the trade to absorb some- of the wool that has already been purchased and would allowfinance in the consuming, centres to become a little easier. At the moment New Zealand growers, through their brokers, are forcing on t'he market a heavy percentage' of this season’s .clip in front of buyers who have no particular desire to purchase. This in itself is having a very disquieting effect. . “Cable advices from England are not very assuring,” he continued, “and the demand apparently is more or less from hand to mouth, but a prominent factor in the wool business that is causing the continued drop in values is finance, which in the course of a few months might become'much more stabilised. The value of bur staple product has now fallen until it must compete very substantially with any of the artificial fabrics/ and this is a most desirable situation from many points of view. So much so that a considerable and rapid increase, in the consumption of the world’s wool is very probable. • "It is not likely that local sales will be postponed at this juncture,” he said, "but many growers will no doubt decide to withdraw their wool from auction in the meantime rather than have their clips passed in the salerooms, and those who are disposed to sell xiust be prepared to accept values which, compared with last year’s prices, will show a reduction of from 40 to 50 per cent.”

FIRST CATALOGUE OFFELED. NEWTON KING’S REALISATIONS. (By Wire—-/'Special to News.) Wanganui, Last Night. Messrs. Newton King, Ltd., report that many growers were not prepared to meet the market and a large proportion of the catalogue was withdrawn from sale. It was early apparent that a further decline on the Auckland sale was to be expected and prices declined a further ;penny per lb. Compared, with the first-Wanganui sale prices were 4d to 4Jd lower. , At no time in the history of wool sales in Wanganui have so many-lots been passed in. The firm’s was the first catalogue to be offered and there was no time to advise clients of the drop and many refused to accept the prices ruling. The state of the market is demoralised and the outlook so obscure that brokers are unable to give advice, as it is by no means certain that values will not go still lower. The bidding was by no means animated and was erratic, and towards the end prices were easier than at the start. The bulk-of the buying went to Brad-, ford, with the Continent taking a good proportion. Lambs’ wool is not wanted and-was .all passed in. Grouped wools again sold well, the top price being Bd. Following are some of the realisations: Rongomai, hoggets 81d, 73d, ewes 83d, 73<1; SRT, ewes 73d;. ERW, weth-, ers 7jd; JSC, ewes 73d; TWM, ewes 7id; JY/Panui, ewes 7id; X/WH, ewes 71d; PIJG/O, hoggets 7M; TA, hoggets 7,3 d; EVE, ewes 7d; DH/Momono, hoggets 73d, ewes 73d; GCR, ewes 7d; L 7, hoggets 73d; WHW, ewes 73<1;1 Mahoenui, ewes 7d; LB/M, hoggets 73d;: W, hoggets and ewes . 73d; JUB/A, ewe's 7d; HM/A, hoggets 73d, ewes 73d;. GHC, ewes 73d; GPWA, ewes 73d; OX/. Huia, wethers 63d; 77, hoggets, 73d; Ohura, B ewes 7d;. grouped wools, hoggets, 29 bales Bd, 92 bales-73d, 12 bales 73d; Crossbred, 78 bales 73d, 23 -bales 7il, 11 bales 6Ad, 26 bales 63d, 59 bales 7d. COMPETITION KEEN TO A POINT. FARMERS’ CO-OPERATIVE The Farmers’ -Co-operative Organisa--tion Society reports that the second Wanganui sale of the season was held yesterday before a fairly representative bench of buyers. The condition of the wool compared favourably with that of last season. Competition -was fairly keen up to a certain point, but the prices realised were from id to 43d lower than those ruling at the first sale held in November. Passings and withdrawals were heavy, there being only approximately 8000 bales sold at auction of the total 18,000 bales offered.