WOOL TRADE.

Wanganui Chronicle, Volume LXXVI, Issue 17779, 30 January 1920, Page 8

WOOL TRADE.

THE BRADFORD MARKET. (Lyttelton Times Correspondent.) BRADFORD, November 21. During the past fortnight values have continued to rise, and merinos and fine crossbreds are now 6d to 17- dearer,'and medium and coarse crossbreds 2d to 4d dearer. Last week the London sales closed very firmly, with prices ton finis wools on the highest recorded level. For scoured merinos the record price of 13d was paid, and for greasy merinos 83d. The pace was forced by the Continent for fine wools, and buyers seemed to be operating without. Home trade representatives were for the most part spectators. Compared with the closing rates of the September series, scoured merinos showed an advance of 15 per cent., best greasy merinos 15 per cent., average and faulty sorts 10 to 15 per cent. Practically the whole of this rise occurred during the series, for prices were about on a par at the opening. The feature of the series, howevet, has undoubtedly been the complete reaction in medium and coarse crossbreds. Fine crossbreds closed 10 per eent. dearer, medium crossbreds a good 15, fine coarse crossbreds 7% to 10 per cent. At one time during the sales the rise in medium crossbreds was 25 per cent., but on the closing day or two there was slight irregularity, which seemed to point to the fact that users had about covered their requirements. In crossbreds the home trade has been the dominating factor: though, of corse, a good deal of their activity is influenced by improving export trade in tops and yarns.

The extraordinary dearness of merinos and line, crossbreds is being seriously considered. At the present time quotations for tops are almost nominal. Topmakers do not wish to sell, and in any case cannot deliver for three or four months. Financing woo! purchases on their pesent high plane is a very difficult matter, because the wool is held up for weeks and sometimes months owing to transit delays. Moreover, those who take the long view see quite clearly that the present level of prices is inflated by temporary circumstances, and that a reaction might swing too far in the other direction. Consequently there is a general agitation in the trade for extended avenues of wool distribution on the Continent and in America, so as to diminish the amazingly intense demand from abroad. Another request is that wool sales should be resumed in the colonies so as to ease the pressure on country. The Government, however, the marketing facilities in this are showing no disposition to alter their programme, and have definitely declared against wool sales in the colonies.

The position of medium and low crossbreds is different from that of merinos. The reaction has been long awa;ted, and probably the turning point was the improvement in the export trade in tops and yarns. Whilst Germany is now only nibbling, there seems little doubt that this is a market which must constantly grow in importance until it reaches something like pre-war dimensions, because the famine in wool clothing in the Central Empires is extraordinarily acute. Moreover, even after the rise of the past three weeks, prices are on an eminently rasonable basis. Nominally, 42d for 40’s prepared looks like a substantial advance on pre-war rates, which averaged around about 1 sd. But in considering the prices of any commodity a very considerable discount has to be made owing to the decreased purchasing power of money. Whilst this factor cannot be estimated with complete accuracy, a very useful guide is an index number of wholesale prices of commodities, such as that of the Statist. This shows that, taking the average of the five years 1909-13 as equal to (prices gcaarally in October stood at 28d (i.e., • rise of 160 per cent). If this is taken as an index of inflation, the nominal price of 42d for 40’s prepared really represents, in terms of purchasing power. 1 5d in pre-war figures, which is about on a level with the average and is well below the 19d cached, in 1906.

Yarn values are again higher. Botany descriptions are almost unobtainable for reasonable delivery. The rise has also affeiNed the finer crossbred qualities, and all round are very chary of accepting further business. Manufacturers are in a similar plight. Fine worsted fabrics are difficult to buy for delivery before next autumn, and the demand is keen even for so long ahead. In fact, the trade outlook from the point ot' view of machinery is extraordinarily good. Practically every comb, spindle, and loom can be run for months to come on orders already booked. A similar state of affairs prevails in the United States. France and Belgium are recuperating rapidly, as their extraordinary keenness for wool demonstratets. Throughout the world th.ere is a general increase in the standard and style of clothing worn by the masses. There is an unprecedented vacuum to be filled up in the Central Empires. Money is dear, but inflation is a good deal worse in Germany and France than it is here, and the gradual levelling of prices internationally which must take place as intertrading increases will certainly not decrease inflation for the time being. Wool supplies are in fact plentiful, but the delivery of wool to the trade is limited by physical consideration of marketing and transport. The following table gives the usual prices at Bradford for tops, but it should be borne in mind that merfno valuers are practically nominal:—

AVERAGE PRICES OF TOPS. Nov 2 0 Nov 6 Oct. 23 July. 1919 1919 191 9 1914 d d d d 7O’jy merino. 156 147 129 n s 64’s merino. .154 141 123 3 2 % 60’s super . 144 138 117 3 1 % 60’s ordny. . 142 138 117 31 60-6 4’s Cape 144 138 117 q <> OS’s cr’sbrd 10S 100 94 26% 56’s' cr’sbrd 100 90 S3 23% 50’s cr’sbrd SO 74 68 20% 46’s carded . 56 51 46 17 40’s prep’r’d 42 4 0 36 1 6 36’s prep’r'd 38 36 35 15%