WOOL REPORT.

Wanganui Chronicle, Volume L, Issue 12711, 23 March 1911, Page 2

WOOL REPORT.

LONDON JANUARY SALES

Freamivn R, Jackson and Co. havo

reccdved tho following report from . their London agents (Messrs. H. Daweon and Co.), relative to tho closing of tho above Scries:— 1 j The first series of London wool sales : for 1911 closed to-day with a small comtogs, 'but difring the closing.days a keener and more general competition f r «v! to ie and strength to the market The potency of the Home demand has been the most surprising featuie, und it continued to the finish U.S.A. dcrcct buying was limited, but theie I were heavy operations in good wools, 1 which are to be cased m YorkAuj Jw . American .consumption. Contmental ! support was stronger towards the ! clt-ee, although the Home lrado was ! predominantly the active operator i throughout the series. } Merinos.—The best greasy combings 'have hardened in value as the sales i have progressed, and show little change* i from December rates. Average sorts I are about 5 per cent, easier, faulty I short wools, only suitable* for carbonisi ing, show 10 per cen-t. decline, broctl ! BcouTCds are Id to l*d below Deteem- | "c'rossbi-cds have sold very ii-regularly. I Compared with last sake, choice fine I grades show little, if any, change. All medium and lower grades (especially j the best parcels) have gradually weakened on opening rates, although during tho closing week there has been I a remarkably good compatition at tho reduced level. Compared with Decem- . ber the decline averages about 10 per 1 cent., medium grades showing the fullest depreciation. Lambs.—Good style merinos have sold at very firm prices throughout, but faulty and short sorts have de- | dined 5 to 7* per cent., as compared i with the best rates of the previous I sales.

Capes.—The new clip wools are gencirally shorter than last year, and th's ha.s to I>3 takon into account, but prices aro undoubtedly 5 per cent, lower on all grensies. Scoureds have improved their posi- . tion during the series/ and now show I but little change from Drccanbor. Punta Arenas.—The small quantity of new clip wools offered was not attractive, being decidedly short, earthy, and wasty. Nevertheless prices paid were extremely good, and ruled quite on a par with December values. Tho Outlook. —The coursiel of values has again proved -the superiority of legitimate demand ovor mere speculative movements, and has shown to> conKumca's . the folly of being overinfluenced by Terminal market .manoeuvres. This should be borne in mind, as we may sco further "bear" attacks in th>o near future*. The sales have "left merinos in a clearer and somewhat improved position. There have beetn in combination some strong adverse factors .__ both, real and manufactured, prejudicial to values. Noile are at a low price, and unfortunately, this season ■ thel clip seoms likely to yield a larger proportion than last year: Continental oonsumsrs have been placed at a disadvantage by their Colonial pwrchaser, and also by a pause in the season's tradie; while the attack on Terminal values increased the general uneasiness; so tliat in all centres confidence hod become seriously shaken. In spits of nil this the sales in Coleman Street have shown remarkable spirit with, latterly, a distinct hardening tendency in the prices of all good greasy merinos. Fortunately, the Home Trade has found i+self in an advantageous position. Topmakers had important existing contracts which Aveiro largely uncovered, and this naturally accounts for their heavy operations in London. Tlieiis were also those (Spinners and Topmakers) -• who have deemed it pnidcfcit to operate frci&lv at tliii. b-riai becnuwp ,of the splendid ssle^tion of I good free combi'iig ■ wools, especially from Western Au^tral:a. Tli^ Clip from Now Sowth Wales and Queensland, on which merino users liave boon chiefly dependent-, is unusually poor, showing much faultiness «is ' mejrai'ds vegetable* matter, and also being short s in, f staple •in fact ; although'iliere -may 7 possibly be an irioreais© in ba!les, it is certain that from these centres there will bci less top produced than from last season's clip. Consequently it becomes increasingly evident" that, whatever may bn the course of values in f-hort and faulty wools, the nosition of the best combing sorts will not ba easily weakened.

The trade conditions in the ultimate markets are not bad, even in Continental centres, where the pessimism is duo largely to the facb that their Colonial piirchas«s are now too< dear. German spinners have found improved busine s during the' past fortnight, although margins of profit arc- smaller thnn during thel previous year. America is still very cautious. Stocks are be-ng steadily reduced, but the uncertainties of the proposed tariff alterations will probably retard freei operations during tho year, and it seems likely that foreign wool business in U.S.A. will bo spasmodic and of a hand-to-mouth character until the tariff question is definitely settled. Tho stat9 of affairs in crossbreds is tho most perplexing problem of the market, and here the outlook is still far from clear. The position will bo better gauged when, the South American and New Zealand * markets nre closed, and the buying power is focusscd on London. The slow demand and comparatively low values ruling in South America have been the- outstanding adverse factors. Strangely enough there br.s l^eoi little justification for such a marked decline at th© con?umimr cril of the/ industry, where machinory lias con+imrcd to be Avell employed -at old prices. Consequently with cheaper raw material it sliould

be eiasy to maintain the) oensumption, which in turn should have a bemcfioial effect on values. Of course there are ttertling differences, especially on the best wools, in comparing pripefc with last January, when U S.A. representatives were paying 15d to 16d for Australasian clips wliicli" to-day ■ are ;onty realising lid to Is; but it must: "als3 be r*?n3ieiribered that the New -Zealand clip is srhocrtcr and in much worse cohditkn.

As regards the immediate future of crossbreds, it is difficult to estimate th-a result of the wave of pessimism which has reoeintly affected Bradford and other centres. Meanwhile, however, it must be noted -that the South American market is showing better tone, and prires have slightly hardened during tho past few days. Moreover. there are too many -relying on • the March series for cheap 'purchases, to warrant too gloomy a view of tho future.

So far as the Home Trad© is concorned, the general commercial outlook js healthy, and our special industry should share in the resulting benefits.

Tho total offerings were 200,000 bale;?, withdrawals 17,000 bales.