English Wool Letter.

Waipawa Mail, Volume XXVIII, Issue 5246, 14 April 1908, Page 1

English Wool Letter.

Heavy Losses on Wool Imports. Two and a Half Millions. BRADFORD, F.b, 21 The wook undor review has been productive of nothing better in the wool trade, and tangible signs of an improvement are not yet in evidence. Last Monday’s market waa flat and disappointing, and while aorne thought yesterday that the tone was slightly bettor, no Arm could make a fraction more for either tops or yarns. I see no prospect as yet of any real improvement. There i 8 only one firm in Bradford that has stuck consistently to their guns through the past two months of depression, and that is the well-known Laisterdyke firm of spinners and topmakers. They oanoommnnd 2/2£ for their standard super 00’s tops, while other firms cannot sell at more that 2/1. They have sold very little lutoly, but are exceedingly busy, and cannot koep up to their previous contracts as they would like. Having made previously some heavy forward sales, no doubt, ia largely accountable for their being somewhatindependent.

The position of noils has helped considerably to aggravate the topmaker and his tops. There has been lately so little doing in noils, both in the home and export trade, that stocks are vory heavy. When commission woolcombora aro going day and night thero is naturally a big output, and unless these move oIT freely into the woollon and flannel trades prices aro soon going to bo effected. A good average GO’s noil has fallen from the highest point of last year something like 5d per lb, which means that extra cost is put upon the tops. In plenty of oasos the drop is Gd. Hoveral of our importers frankly udmit to Sydney, Melbourne, and Adelaido bought wools turning out vory dour and above limits, and the situation is all the more aggravated by noils, shoddy, and burrs, as well as backings, which are all the refuse of the combs, being worth so much less. Jf a top is costing no more than the limit, with the fall in the price of noils, etc., is Jd per lb too dear, all the direct result

of less returns accruing for the byproducts of combing. Those who use noils will not buy a bale more than they actually want, simply beeauso they think that things are so precarious and trade so much quieter that possibly next week they may get in a farthing cheaper, and this is causing accumulations with noil dealers. Here we have one fruitful cause of faulty scoured wools fit for extracting being so bad to sell at even lower rates. I can’t see any improvement for these wools at the March series in London, and any firm who can use faulty lots can to-day pick up some vory reasonable lines. A well-known spinner says he has never known a time when manufacturers and business people generally were so despondent us they are to-day. lie travels up and down Yorkshire, and the manufacturing areas of Houth Scotland, and after the boom of last, year he eould hardly believe the changed temper and attitude of yarnusers generally. Liko many more, ho thinks the present- situation in fine wools is entirely unwarranted, and this nerve - paralysis was affecting everybody. 1 believe if the trade generally really felt thero was going to be a shortage of combing merinos, that thero would bo a big wave of buying, both of tops and yarns ; but retrenchment everywhere soems to be the order of the day. Nobody seems to want anything, and there matters Htick. Combers in merinos are as busy as any time last year, and deliveries aro taking place with the greatost possiblo freedom. If that bo so, wool must bo going into consumption, and that iH the sheet anchor of 56’s and upwards. lam afraid many aro crying out simply to be in the fashion, for mills generally aro still all busy, and plenty yet running overtime. The only tales of slackness come from Huddersfield, and there short- time is being run with several of the beat worsted people. Accounts from Germany also state tliut. in certain districts mills are oidy running four duys per week, and the same obtains in America. But, as for the trade of Yorkshire, it is not by any means quiet, and while it is wisdom to prepare for the worst, still in some quarters more is being made of the adverse factors than is warranted.

Wool importers this season have been hit both hip and thigh on their colonial purchases, and especially on the large quantity they seeurod last Heptembor, Octobor, and November in the premier selling centres. To say that, both Yorkshire, French, Gorman, and American importers know it is stating a vory commonplace fact, and at the moment the trado is in the vory thick of landing theso dear purchases, it. is as yot too oarly to say what, is going to be the upshot of it all. It has led to more than ono family disturbance and dissolution of partnership in England and on the Continent, while the heud of one leading American importing house committed suicide n few weeks ago, disgusted and worried to death with the terrible legacy of the last fow months. Of course, this is a question looked at from two opposite points by the grower and buyer, but as a rule what does well for the latter does well for the former, and vice vorsa. A vast change will havo to come over tho minds of importers to

what oxists to-day, otherwise they will make a bold bid to get baok out of the pockets of growers what they have lost this season, and some unforeseen factors will have to obtain if buyers pay" the same figures again the next time they go out to Australia, South Africa, and Buenos Ayres. A time like the present puts everyono strongly on the defensive, aud it is certain that importers to-day see the serious mistake they have made, nod at their first opportunity they will try to recoup their losses.

' Woolgrowers who have Bold this season in their own markets have done well, and pocketed all the profits Repeated warnings were given to importers in the public press of this district as far back as last September, that prices were dangerous, hence they have only themselves to thank for the unpalatable harvest they are now reaping. I maintain that the interests of both growers and users would have been best served if buyers

had gone slowly in the early days of October, and awaited developments, rather than have rushed in and bought heavily, as many importers did. Even the financial crisis in America, which proclaimed from the housetops what was sure to follow, prevented not in the least the majority from pursuing their mad career. To day, with burnt fingers and much lighter pockets, a good many are smarting keenly under their own lash, and we are afraid that banking establishments in the neighbourhood of Bradford and Germany are to-day exercising considerable pressure upon some of their clients. It is certain that many firms are not having such a comfortable time as they experienced a year ago, and losses anywhere ranging from £3 to to £4 per bale are having to be faced. A few salient facts arising out of the uncomfortable circumstances are well worth noting. The bail was really set rolling in the colonies at the first Adelaide sale, which took place last September 26th, and the first three sales in that centre were practically red-hot, notwith standing a deepening commercial horizon in England, on the Continent and America. Both at Melbourne and Sydney wool was bought with great zest, the programme of many buyers, no doubt, being fixed up and determined by some orders from home, where “ future” sales had been made. Yorkshire was particularly active at Adelaide, due, no doubt, to the well-grown, shafty, deep-comb-

ing character of many of the South Australian clips. Adelaide wools are strong favourites with Bradford topmakers, several firms producing good standard super 60’s tops, largely buying these wools, and blending same with shorter stuff to carry it through. Several Bradford firms figured at the top of the list, along with one or two from ltoubaix. Buyers here admit readily to have mistaken their bearings entirely, for not only have they paid high prices, but several have exceeded their limits in estimating the cost of tops, some being out over a penny per lb. An average Australian greasy bale of wool will weigh fully 3501 b, which at per lb means a loss of £3 13s per lb—a very serious thing indeed. The Australian papers which have come to hand during the past fortnight have naturally rejoiced at the large quantity of wool which has been sold in Australia for the first half of the wool year. The total is 882,603 bales, and estimating the loss on imports at £3 per bales instead of £3 13s there is an all-round loss of £2,647,809 on the wool bought in Australia up to the end of last year. We are well aware that the purchase in December will not amount to £3 per bale, but those made previously will be nearer £4 than anything ; consequently, in approximating the loss at £2,600,000 we are below the mark. If it was possible to obtain the correct amount we are certain it would come to considerably over three million sterling. We are happy to think that the above loss will be fairly equally distributed between the home, Continental, and American trades; and, if anything, Franco and Germany will be called upon to divide the heaviest portion.

In view of the above facts there is no wonder that the present state of the wool trade should be disappointing, crossbreds especially being demoralised. It is common knowledge that in Bradford a good 40’s top has been sold forward for May delivery as low as ll|d and some say llid. Merinos are steadier, but we hear that some importers are rather keen sellers, and it is quite easy to sucure a good super 60’s top at 25d. The wool has never been bought in either Coleman street or Australia to produce a combing at anything like that figure, and unless we are greatly mistaken there is a financial pressure being brought to bear upon some who are endeavouring to turn their holdings into hard cash. It looks like

somebody being cither lamed or killed. These Colonial growers who did not pass by a good market either in Au» tralia, New Zealand, Cape Colony, or even Buenos Ayres, are to be congratulated on tbeir stroke of good luok, for we are certain that they have gained an average of 2d per lb all round on their best combiDg lots. If the buyers at the time sold forward “ futures ” they will not lose as heavily as those who have not done so, but many being so badly bitten over their future sales from January to June, 1907 (the result of Belling forward in August to October previous at very low prices) did not adopt last autumn the same tactics. The result is that their losses are all the greater, because from the time the wool was bought to its arriving here, prices declined somewhat, sharply. In London there is very little inquiry, only a few withdrawn lots from last series being taken up at no better prices.