WOOL SALES.

Star (Christchurch), Volume LXVI, Issue 20485, 11 December 1934, Page 9

WOOL SALES.

First Wellington Series Reviewed. A SMALL OFFERING. Reviewing the first Wellington wool sale on Saturday, Messrs Dalgety and Co.. Ltd.. Wellington, report: The offering was a small one—ls.ooo bales—a great contrast in both quantity and price to the December sale of 1933. when 30.000 bales were offered and 27.300 sold under animated competition. Our average at the latter sale was £l4 3s 4d per bale and 9.57 d per lb as against on an estimate of Saturday’s prices of £9 14s per bale and 6ld per lb. Two sales were held previously to ours, Auckland and Napier, and range of prices for both were widely published. From these sales growers should have had a good idea of ruling values, but the number of prohibitive reserves that were received and the number of instructions to withdraw clips after receipt of valuations, were surprising. In the interest of the industry as a whole it is essential to keep on selling wool. Buyers expect reasonable cata logues. If offerings are restricted when it is known that plenty of wool is in store, and heavy supplies of the new season's clip accumulating, a condition develops that causes concern to the buying side of the trade, and the bogey of a heavy carry-over under mines confidence.

On the other hand brokers find it extremely difficult to advise their clients to sell in a depressed market if they can see any prospect of im provement. Yet it seems dangerous to withhold supplies. That in itself is a factor making for even lower prices. There is nothing like an undue accumulation of wool in store to depress the market, and growers whb have wool available for sale should consider this factor.

There is no doubt that Germany is anxious to purchase wool in New Zealand. She needs wool to clothe her people, and to keep men and women in employment. Buyers for Germany would, no doubt, operate freely in our market, but they cannot buy except to a very limited extent until they establish credits in the Dominion for their purchases.

To-day we are sadly missing German competition, especially on the fine shabby wools which mainly come from the Blenheim and Nelson districts Theirs is a speciality trade for such classes of textile, France and Belgium at times also being interested in the same quality. Unfortunately the English trade is not a heavy buyer of these wools with the result that under present conditions these ■wools are neglected. Under normal conditions Germany annually uses about 1,300,000 bales of raw wool, tops, noils and yarn. Owing to the shortage of overseas credit, she is now being forced to use artificial wool called “ Vistra ” for admixture, this being produced in her own country. From 30 per cent to 50 per cent of this fibre is being blended into the cloths and other goods manufactured in Germany, and although the price of “Vistra” is not cheaper than wool it pays to use it as it is keeping men and women in employment and the money in their own country. Apparently it is hopeless to look to Germany for any material support for the wool market in the near future for she has evidently embarked upon a policv of self-denial. She wants wool and other commodities but cannot pav and must therefore do without, as far as Australia and New Zealand are concerned. Through having been able to trade with the Argentine, credits in that country have been established and fairly heavy purchases of the raw material have been made from that country.

It appears as if the present strong feeling for intense nationalism in trade is somewhat to blame for the stalemate now being experienced and that nations will acknowledge the futility of a policy designed to curtail imports and at the same time increase exports. In sympathy with the unsettled state of the Continent, business in Yorkshire has suffered with the result that the English textile trade to-day has had its confidence shaken, and is finding it difficult to arrive at a basis which may be regarded as safe in wool purchase.

3he extremely high and false prices recorded at last January’s sale have influenced many growers to get their cups forward for the same month’s sale this year already the catalogues for the next Wellington sale are closed. Anything can happen in the wool trade, out unless something unforeseen occurs, we will be surprised if the present range of show any appreciation. In January in three weeks, between Welhngton, January 7. Napier, Tanuarv 12, Uanganui. January 17. and Auckland, January 22, about 109.000 bales, mostlv crossbreds, will be offered and with Germany out of the market and onlv •small orders held for Italy, France and Belgium, it seems as if this heavy weight of wool may be difficult to lift. If passings are heavy, the accumulation continues, and it seems as if we will end up the season—on present average offerings and disposals—with a record carryover. Growers must now 1 have a good sound idea of ruling prices and if they are not prepared to sell at present market rates, then it is useless expense to themselves and placing extra work on buyers and brokers to reser WO ° ls which carry a prohibitive The result of to-day’s sale was well up to expectations, and was fully firm on Napier, also up to, and on certain wools, ahead of London parity. Some of the super hogget wools were, as compared with late sales, selling in growers favour. In merino the well-known Hillersden clip commanded keen competition, 12 bales ''’ et hers making 12d. 15 bales ewes lUd and 4 bales bellies Sid- In fine half-bred the much-sought after I'wic clip brought forth spirited bidding. , bales e-wes bringing 113 d, 9 bales wethers 12d, 5 bales hoggets 12d. 5 bales bellies and pieces 9id, and these lots, without exception, being taken by local mills, the other lots going to Japan. These prices for merino and hall-bred were the top of the sale In fine crossbred (50 to 54's) we also topped the sale with lid for 14 bales of Branscombe ” hoggets, a soft, sound, light conditioned parcel carrving good character. Melbourne Prices Steady. United Press Assn.—By Electric Telegraph—Copyright. (Received December 11. noon ) SYDNEY, This Dav. I he wool market proved as expected when sales were resumed at Melbourne prices being on a par with recent levels in other centres. Merinos sold to 16£d and comebacks to laid.

London Series Continue. United Press Assn.—-By Electric Telegraph—Copyright. (Received December 11. noon > a v LONDON, December 10. At the wool sales. 9315 bales were offered, including 2576 from New Zealand. A total of 8336 Australian and New Zealand bales were sold. The senes close to-morrow. Buyers keenly competed to fill requirements and full recent rates were maintained. New Zealand lots sold as follows: Half-bred lambs slipe, Fairfield, 13id Bradford is firm, with more business being done. Sydney Series. . SYDNEY, December 10. At the wool sales to-dav 10,575 bales were offered and 9872 sold, while 1629 were sold privately. There was strong general demand, and increased Continental competition. The market generally was firm on last week s closing rates, and all skirtings par to 5 per cent higher. Greasy merino sold to 17d for seven bales. Last week’s average price was £l2 2s 6d per bale, or 9.4 d per lb. Germany has agreed to pay debts to British rubber dealers over nine month period or less in some cases. 1