The Timaru Herald THURSDAY, DECEMBER 17, 1925. THE WOOL SALE.

Timaru Herald, Volume CXXIII, 17 December 1925, Page 6

The Timaru Herald THURSDAY, DECEMBER 17, 1925. THE WOOL SALE.

Sucli conflict of opinion exist* regarding the, prospects of the wool market, that beiore the first local wool sale of the season opened yesterday, growers were not a little concerned as to tike trend prices might take. Some experts argue that there is a surplus of wool available this l year, while it is confidently claimed by the statistical commentators that since there is a world shortage of sheep, and the demand for wool tends rather to increase than otherwise, thei lower prices iuling for wool this season are not caused by surplus supplies or lessened demand for manufactured wool, hut by price limitations definitely imposed on the operations of many visiting buyers by the leading wool-buying firms’ of the world, who made such enormous losses on the wool purchased in New Zealand and Australia last year. It is most satisfactory to record, however, that the prices obtained at tke wool sale- held in Timaru yesterday, exceed the anticipations of growers. Says the official report,:

That the sale did not mark such «, big drop on last year’s closing values a,s was expected may be judged from tin. following :—Some halfbred which was passed last year at 201 d was sold yesterday at 15Jd; some second halfbred ewe passed last year at 19Jd sold yesterday at 14d; comeback wether passed last year at 20d realised 17d yesterday, and comeback ewe passed Inst year at 20£d sold yesterday at 16$d.

That, the majority of growers anticipated a further drop in prices yesterday is proved by tlie expressions of satisfaction heard on all side?. Moreover, of the fairly large catalogue of nearly 11,000 bales, less than 1 per cent, failed to realise the growers’ reserve. One of thei most encouraging features of yesterday’s sale was the more active participation of the Bradford buyers. _ln the North Island, and indeed in North Canterbury, the buyers representing British firms were operating very sparingly. Doubtless, this “wait and see” attitude has been forced on Home and Continental buyers by stem lessons of the past,. In Wellington on Saturday last, independent observers advanced the opinion that “the- most that can be said for thei wool sale is that, although prices are lower than a month ago, they are still fairly good. Tlie outlook is uncertain and for that reason the position appeal’s to be worse than it, really is. Growers arei of course unable to realise to the- full the change that has come over the wool market, and it is not surprising therefore if many of them re-fuse to accept the current, prices as being the best obtainable. The withdrawals at the Wellington wool sale were rather larger than usual, and this noticeable with the catalogues submitted on Saturday. Bradford representatives werei operating more freely at. thei second Wellington sale; nevertheless, it was obvious that they were acting wifcu extreme caution, giving the impression tint the-y doubted their own judgment. A woolbroker was asked if lie thought that now Bradford was coming into- the market there was any chance or wool prices stabilising at somewhere near the current range, of values. His answer was prompt. “There are no prophets in the wool trade now. _ They areextinct.” From this it may be- inferred that in the- opinion of woolauthorities, the- immediate future of t-liei trade is full of uncertainty. Confidence lias not yet been, established, aud there are' no indications of the return of that confidence which is so essential to sound business conditions. Some of the critics cherished the, fond illusion that abnormally high prices had come- to stay. Doubtless, the- oversea buyers, steadied by the- heavy losses suffered last year, have- developed finite a contrary notion. More- than that, if the price- of wool could be maintained at the- Irigb rales ruling last year, the consumptive demand for tire manufactured article would decline so quickly and universally that buyers would be left with enormous supplies of high priced raw material on their bands, and thei way would be paved for the introduction of cheap substitutes. In view of the uncertain outlook and the extreme caution being shown by buyers from all countries, tire sale yesterday gave general satisfaction, ami tlie cTowors have- reason to be satisfied with the prices- realised.