WOOL SALES FEATURES

Taranaki Daily News, 15 January 1931, Page 11

WOOL SALES FEATURES

ACTIVITY AT BRADFORD STABILISATION OF THE MARKET. HOLDING POLICY UNDESIRABLE. (Special Correspondent.) Wellington, Jan. 12. The Dominion wool sales were resumed after the holidays by the sale at Wellington last week, and those who were present at this sale will have noticed several features more or less pleasing. It can be said at the outset that there was no pronounced movement in values, except that super crossbreds were firm., buyers’ limits for this class of wool being somewhat elastic, with tho result ■ that prices ranged from to 8d per lb. On the other hand it was obvious that Continental representatives had had their limits reduced since the December sales, the result being that wool suitable for the Continent receded about Ad per lb. But this affected the low grade wools only; that is, such wools as sold last month at 4£d do-.vnwards. An outstanding feature was the activity of Bradford. Not for a long time has Bradford afforded tho market such steady support. Bradford’s limits were rigid, but within the limits the competition was vigorous and at times positively fierce. The result of Bradford’s timely support was that ordinary average and medium crossbred maintained their December values. In point of fact Bradford’s support stabilised the market and the reports of selling brokers show that wools sold slightly in- favour of sellers. Whilst all other except those suitable for the Continent were steady, the latter were a shade in favour of buyers. There appears to be more than meets the eye in the attitude taken up by Bradford. For a long time past Bradford representatives were not in the picture, and the wool market has had to rely on the unstable support of Continental representatives. Now Bradford representatives are very much in the picture, and it is not an impertinent question to ask why. It must be remembered that the British woollen textile industry has had a long period in which tc make readjustments. Costs have been reduced by rationalisation and by the lowering of wages, while weak competitors have been eliminated. The raw material is to-day exceedingly cheap; compared with just about 12 months ago wool is about 30 per cent, cheaper. It looks as though the Bradford stage is set for a revival. Obviously Bradford sees in present prices, and under its own readjusted conditions, the prospect of profitable turnover, hence the steadying in buying. This view of the situation may be wrong, nevertheless it must be admitted that the activity is significant. Bradford is not buying wool just for the fun of losing money. It has tolerated that fun in the past, and has since been in the .doldrums buying from hand-to-mouth, a policy that has been rigidly observed. Now Bradford emerges and becomes a strong prop for the market. That surely is significant. Further light will be thrown on the situation by the London sales which . re fixed to begin on Tuesday, January 20. If the inference of the Wellington sale is correct, then it is probable that buoyancy will be shown in London, with every probability of a hardening tendency. This of course is subject to there being no industrial disturbance in Britain, and of that we cannot be sure while the coal miners in South Wales are restive. . At the moment it can be said that the local prices are somewhat steadied, and iu view of that it is to be hoped that growers will see the desirability of, marketing their clips and not hold them over. So far this policy of holding up supplies has been practised, and. if continued through the Season the effects will react on growers. An accumulation of supplies of any commodity is a menace to the market, and it appears to be particularly dangerous with regard to crossbred wool because our formidable competitors in South America are selling their clips at lower prices than New Zealand growers are getting for theirs. The slogan of woolgrowers just now should be “Sell and repent, but sell.” If there is a consumptive demand for wool, and that appears to be the case, judging by th© stability of values at the Welling? ton sale, the market should be fed to the limit. The greater the quantity of wool that passes into consumption the greater becomes the prospect of an improvement in values. -There is developing a distinct silver lining.