A SUBSTANTIAL DECLINE

Timaru Herald, Volume CXLIII, Issue 20897, 29 November 1937, Page 8

A SUBSTANTIAL DECLINE

WOOL VALUES FIRST SALE OF SEASON TOP OFFER 17d By Telegraph—Press Association AUCKLAND, November 28. A substantial decline in prices occurred at the first New Zealand wool sale of the 1937-38 season which was held in Auckland on Saturday. Values dropped about 40 per cent, compared with those ruling at the first sale last year. Reserves were not reached in the majority of cases and only 30 to 35 per cent, of the total offering of 25,000 bales were sold at auction. The estimated return Is about £l4 a bale. Though prices fell so steeply Compared with the rates of the year before, most growers were pleasantly surprised that the drop was not even greater. The activity of Continental buyers, representing principally French and Belgian interests, and the demand of Dominion mills for super-halfbred lines saved the day. There was a marked absence of Japanese competition which dominated the first sale last year and was largely responsible for the phenomenal prices. Top price offered was 17d for several lots of fine halfbred wool which were passed at this figure. The passings were exceptionally frequent. The majority of the bids fell substantially short of the reserves, though a proportion of growers sold later by private treaty. The estimated average on the lower range of prices is lOd per lb, compared with 14.225 d per lb and £2O/10/6 a bale at the opening sale last year, and 8.27 d per lb and £l2/2/- a bale at the beginning of the 1935-36 season.