DISAPPOINTING PRICES FOR WOOL AT AUCKLAND SALE.

Star (Christchurch), Issue 19237, 26 November 1930, Page 4

DISAPPOINTING PRICES FOR WOOL AT AUCKLAND SALE.

“Only Coming Back To Normal,” Says Manager Of One Firm.

(Special to the “ Star.”)

AUCKLAND, November 25. FIVEPENCE FARTHING per lb, for twenty-two bales of thoroughly useful cross-bred fleece, well grown, clean and in good condition. This was the price paid for the first lot of New Zealand’s 1930 shearing offered at the Town Hall this

morning. Onlv three seasons ago, at the corresponding sale, and from the same platform, the first lot offered found a group of buyers on their feet frantically yelling their bids of “Seventeen! . Seventeen! Seventeen! ” A lot. of water has passed under the bridge since that record season for Auckland woolgrowers, when their total cheque at the end of the season was over £1,000,000 — a million useful pounds, to be circulated among the shops and stores of Auckland city. The contrast to-day is distinctly painful. Good, Honest Wool. There was a large gallery this morning, including many farmers who had come to see their share in the clip submitted to auction, and their feelings, as they saw good, honest wool almost thrown away can be imagined, for the s:ld which opened the bidding was by no means the lowest offering. Very quickly it became apparent that this price was only available for the betterclass lots, and for many lots of fleece wool 4d per lb was the best offer, while lambs’ wool, bellies and pieces and crutchings were bought at anywhere from Id to 3d per lb. As the sale proceeded, it appeared that the one class of wool in real demand was cross-bred hoggets, and for good-sized lines of these showing quality there was keen competition at from old to 6d per lb. With this exception, the demand -was poor, and even at the low prices ruling there was a marked hesitancy in the bidding, which was in unwelcome contrast to the customary vigour and pace of a typical wool sale. Many lots -were withdrawn, and of those submitted an unusually large percentage was passed unsold. Bradford Not in Market. Reports of this season’s Australian sales have had an optimistic trend, and in some cases indications of rising values, but it must be emphasised that the Commonwealth wool consists chiefly of merino, whereas the New Zealand clip is almost wholly crossbred. So far, there are no signs of a recovery in the cross-bred section. Stocks in Bradford of the coarser type are still heavy, and, according to advices from London, a further fall at the next sale to be held in the British metropolis is anticipated. This aspect was borne out by the bidding in the early part of to-day’s sale, for purchases were largely confined to Continental operators, with one or two exceptions. Bradford was not in the market, which indicates that, low as the prices were, they are still above Bradford’s idea of value. In this connection, it may be meagre . consolation to those who have accepted low returns to-day that,- in the last three years, the November quotations were not equalled in the later sales of the same season. .Short carding wools were practically neglected, as was noticeable in the prices offered for bellies and pieces, for lambs’ wool and for crutchings. To effect sales, very low figures had to be accepted for these. Where Growers Fail. The season’s clip opened up much on a par with tjiat of recent years. Possibly it carried slightly more condition. Included in the offerings were some very. nice clips, which failed to realise their full range owing to growers having neglected to skirt properly and take out the bellies. Brokers draw the attention of growers to the urgent necessity of presenting their offerings to the buyers in the best possible condition. A Low Range. The eyes of the Dominion have been turned on Auckland, for to-day’s sale gives the first indication of the values that may be expected in other centres. It is evident that the news sent out will not be welcome, for it seems to forecast a ver\'- low range for the New Zealand clip as a whole. In this connection, it may be mentioned that for the years ending on September 30 the exports of wool from the Dominion were valued as follows: 1927-28, £16,597,955; 1928-29, £15,893,160; 1929-30, £8,357,860. There was, therefore, a drop of over £7,000,000 last year in this one line of the farmer’s produce, and, for the current season, there will be a further fall. ’“Back to Normal.” The manager of a leading pastoral firm said: “ Well, I’ve seen it worse than this before, away back in 1901. We’ll get over this as we’ve got over other troubles. We have been living in a fool’s paradise, with inflated values and false ideas. Now we are coming back to normal. Land values are steadily being readjusted, and you will see that things will right themselves much quicker than many people expect.” Wool Held Over. In the 1926-27 season, and the succeeding one, Auckland’s wool clip realised over £1,000,000. Last season less than half that amount was obtained. The receipts were curtailed, partly because growers, disgusted with the poor price offered at the later sales, refused to part with their wool, and large quantities were withdrawn from auction. Some was afterwards shipped to the Old Country, but the trend of

the market was still downwards, and the prices obtained in London, after making for the added expense, have been less than could have been secured locally. It was estimated that there were 9000 bales still available in the Auckland province from last year’s clip, and about half of this was included in to-day’s offering. Four Years' Returns. Some idea of what has been happening to the local market can be gleaned from the following table showing the complete returns for the past four sea-

The average price for last season works out at 5.26 d per lb, which compares with 10.947 d in 1929, 15.64 d in 1925, 14. Sid in 1927, and 10.91 d in 1926. A Poor Prospect. To-day’s offering may realise from £6 to £7 per bale. It has been common knowledge that, in recent years, British and Continental wool users have lost heavily on their purchases, but, if they cannot make profitable use of the wool purchased to-day, then it is indeed a poor outlook for the industry. It is difficult to assess the cost of producing a pound of wool, which, naturally, differs according to the varying cost of the farmer’s holding and other special conditions, but the assertion has been made and not controverted that a shilling a pound is necessary if both ends are to meet. “ Dalgety’s Review ” accepts this estimate, and, on this basis, states that New Zealand woolgrowers sold last year at 50 per cent under cost. OFFICIAL RANGE OF PRICES GIVEN. Pet* Press Association AUCKLAND, November 25. Very low prices ruled to-day at the Auckland wool sale, the first of the Dominion series. One particularly noticeable feature was the remarkable caution with which Bradford interests operated. Indeed, most of the competition in that quarter came from one firm. Continental buyers were the backbone of the sale, it being understood that a great proportion of the offering is destined for the German market. There was a representative bench of buyers. Prices on the whole were less than half those realised a year ago. The average of £ls 9s a bale then achieved fell at the successive Auckland sales to £lO 5s in February, and £8 18s in March, while It is probable that to-day's average, reckoning 3401 b to the bale, would not be much above £6. Approximately 20,300 bales were offered, including 4000 held over from last season. Sventy per cent were sold. The following official range of prices, for to-day’s sale was supplied by the Wool Brokers’ Association, comparative prices at the first sale last year being obtained from the official range then given by the association. 1930 1929 d d d d

sons:— Average per bale . Total. d. 1926-27'— November .. 5 7 February .. .. 17 » 4 March. IS 4 136,000 Season’s total . 748,000 1927-2S— November .. .. 21 9 496,000 February .. .. 23 b 2 518,750 March .. .. — 29,000 Season’s total . 1,043,750 192S-29 — November .. 11 0 495,876 February .. IS 11 S 498,880 April 2 S 29,9-36 Season’s total . 1,024,682 1929-30— November .. 9 2 238,125 February .. 10 5 1 146,494 March . - .. IS 10 114,098 Season’s total . 49S,717

Medium half-, bred’ 50-56— Super 64 to 7 14 to 154 Average .... 5} to 6 12 to 13J Coarse half-bred, 48 to 50— Super 6 to 7 12J to 135 Average 5 to 52 11 to 12 Inferior .... 4 to 5 95 to 105 Fine cross-bred, 46 to 48Super 51 to 61 124 to 134 Average .... 5 to 54 102 to 12 Inferior . — 32 to 45 9 to 104 Medium crossbred, 44 to 46— Super 5 to x m to i2i Average .... 4 to 42 104 to 114 Inferior —. 34 to 4 84 to 10 Coarse crossbred, 40 to 44— Super 44 to 5 11 to 12 Average 4 to 44 92 to 102 Inferior — . 3 to 32 S to 94 Low cross-bred, 36 to 40Average .... 4 to 44 94 to 102 Inferior .... 31 to 4 74 to 84 Hoggets— Half-bred .. 65 to 75 Fine 5} to 64 13 to 14 Medium ....' 5 to 6 12 to 13 Coarse . — 4 to 5 114 to 124

Lambs— Fine, 44 to 50 5 to 61 Medium, 40 to 44 5 to 0 Seedy and inferior 1 to 3 _ Bellies and pieces— Cross-bred—• Good to super 3 to 41 8 to 9* Low to med. 1 to 22 61 to 74 Crutchings— Medium t o good 2 to 7 to SI Inferior t o seedy .... 1 to 2 41 to 7 Locks— Crossbred .. to 1 42 to 71