WOOL REPORT

Wanganui Chronicle, Volume L, Issue 12145, 9 January 1908, Page 2

WOOL REPORT

Messrs. Freeman R. Jticfk'sSn aiidrCo:' \ have received the following report from ; their London firm, Messsrs. Dawson and Co.:—. • j Tho sixth series of colonial wool sales • opened on November 26th with a total •offering of 9719 bales, of which the bulk ! was Australian new clip merino. There. '' was "a, large attendance, with fair com- ] j petition from both the Home and Con-'. tinental buyers, while American sup-; port was not much in evidence. j Merinos.—The selection was unusually ; good for an opening day. The best and i most stylish wools were taken at a," decline of 5 per cent, for September j rates. Medium greasy combings, and j all scouredsj averaged 10 per cent, do- j dine. | ■Orossbreds. were unrepresented except ] by slipes, which ruled fully 7£ per \ cent, below last sales' level. \ Lambs were in small supply, and. ] price/showed little change. " j. Capes.—There was a moderate selec- ]'' tion offered. -Soouvcds declined 7£ per ,' C.en]f/.,. i ,.an-d > greasies-^vto 10 per cent, j., -£. : Mio':^U;tigi)k,.r— Since "the. last -auctions " [ wo aro face to face with ail altogether ' new situation. , ' The exceptional prices of last series < wero due to exceptional conditions, and [ some reaction, or rather adjustment, , was inevitable. Unfortunately the far- ( reaching effect of the American finah- < cial crisis has accentuated the reaction-, ary movement. Dear money has naturally •checked the flow of demand. Con- . : flumers, remembering the effect of finan- j cial stringency in 1899 and 1900, have •' become extremely cautious. Consequent- ; ly the buoyancy which has for twelve ! months past characterised our industry : has been displayed by nervous anxiety , ancl a quieter tone. j Happily, the reports, from all Euro-! pean centres indicate most conclusively ' that our industry is in a sound and": healthy condition, and is likely (thanks : to several prosperous years) to suffer , less than most commercial industries.' Moreover the stocks in consumer's hands generally are at- the lowest possible working point. Contracts for next year's requirements in tops and yarns, which would have been freely negotiated in September but for the sudden spurt in values, are, .in the majority of cases, still waiting to be ljlaced. The present delay appears to be duo more to lack of confidence than to any difficulty as regards prices. i . In fact the general caution which prevails is in itself the best security for an early return to better conditions. It is reasonable to expect that the present series, by tho establishment of a basis of values, will help to restore confidence, and pub an end to the uncertainty and stagnation of the past weeks. Several facts of a satisfactory nature ': should be remembered. Merinos are now approximating more nearly to the moderate values of twelve months ago; it seems-probable that there will be a slight all-round decrease in this season's supplies; and it is generally agreed that another good season for worsted fabrics may be expected. The stocks of merino tops in German combine; mills for last month were extremely low, amounting to a little over three million kilos only (La Plata and Australian combined), which is the lowest point touched for many years. Cn>ssbreds aro in a state of nebulous uncertainty, ami users have awaited tho settlement of values on a firm basis. Buyers have been standing off so long i that medium and coarse grades have | declined to a level which is unjustin- ; ably low as compared with finer sorts, j and a .sharp reaction is more than pos- • sible before long. } Altogether, despite financial tighti ness, the balance of evidence is in fay- '■■ our of a hopeful view, and of the raain- ! tenance of to-day's level.