WOOL IN LONDON

Wanganui Chronicle, Volume LXXXIII, Issue 19505, 5 February 1926, Page 9

WOOL IN LONDON

NOVEMBER-DECEMBER SALES COMPREHENSIVE REVIEW Messrs Dalgety and Co., Ltd, Wanganui, have received from their London office the following review of the closing wool sales of last year:— The sixth and final series or London colonial wool sales for the year 1925 opened on November 24 and closed on December 16. The series occupied 15 selling days, there being'two postponements owing to fog, and during that period the following quantities were catalogued :x—Sydney 22,436 bales, Queensland 18,366, Port Philip 15,518, Adelaide 4.579, Tasmanian 393, Western Australian 6,588, New Zealand 61.901, Cape 3,526, Kenya Colony 881, Punta Arenas 21,599, Falkland Islands 276, Rive Plate 1,861, English 4,353, sundries 1,695; total 163,972 bales. Of the above quantity about 138,000 bales were sold, including 25,500 bales of South American, African and English wools. It is estimated that the Continent took something like 73,500 bales, the home trade 59.500 bales and America about 5,000 bales, leaving 35.000 bales to bo carried forward, of which 18.500 bales were not offered.

The sales opened with a very large attendance of buyers and bidding was keen from both the home trade and continental sections. Values all round registered distinct improvement over those ruling at the close of the Septem-ber-October series, although the rise was less pronounced than had been anticipated a week or two prior to the opening of the sales. A strong buying movement had developed shortly after the close of the last auctions, prices at one period being a full 10 per cent, above values ruling at that time. The demand, however, quietened down before the commencement of the Novem-ber-December sales, and prices therefore opened somewhat below the highest point reached in the intervening period. For the first two or three days of the series prices were well maintained, crossbreds if anything rather improving in value, but from this point onwards a decline set in, and not only was the initial improvement lost, but values recoded to a level substantially below those ruling at the close of the previous sales. This decline, which affected all classes of wool, was mainly due to a diminished French demand following on financial difficulties in that country, and the reduction in French buying became more pronounced towards the end of the series, values reaching their lowest level at the close of the third week. The home trade demand, however, which had been fairly consistent throughout, was sufficient to keep the market steady at the lower level of values, and the sales closed with a good tone and more confidence than had been shewn during the previous two weeks.

Merinos. —There were particularly good offerings of Merino wools catalogued during the sales .both Queensland and New South Wales being well represented. The demand for the finest combing descriptions remained good throughout the sales, though, of course prices were considerably lower at the close than at the opening. The highest price realised was 36Ad for superfine New England wool, several other lots from the same district closely approximating this figure. Queensland scoureds touched 54Ad., these high prices, of course, being made during the early part of the sales. The decline in values which took place later on was naturally most severely felt among heavy and wasty wools more particularly suitable for Continental requirements, these at times often being per cent, below the parity of last sales. Pieces anti bellies, both scoured and greasy, which wore selling on a very high basis last sales ,also suffered through lack of French competition and showed an even greater decline than faulty fleece wools. On the other hand, broad haired Merinos, which were on a relatively low level last sales, did not feel the drop to anything like the same extent as the finer varieties, and under Yorkshire competition prices for these showed very little change from the rates ruling at the close of the previous series. Crossbreds.—All descriptions of greasy crossbreds were very well represented, and for the first part of the sales met spirited competition at an advance over September-October rates. In the second half, however, values declined considerably, and although the demand remained good, prices closed on a distinctly lower level than in October. There wore very large offerings of scoured and slipes, and these more or I less followed the market for greasy varieties ,tnough at the close the decline was less marked.

Lambs. —There were good offerings of both Merino and crossbred lambs’ wool, and these met a good demand with less change in price than for most other descriptions of wool, though values were certainly a little lower at the close than at the opening of the sales.

African Wools.—The selection of Clpe wools were smaller than usual, greasy descriptions being in very short supply, and prices for these have shown much the same fluctuations as Australian sorts. Scoured were more plentiful, but as owners’ ideas of values were often above the market, withdrawals were heavy. Nearly 900 bales of Kenya wools were offered, comprising of the best clips from the colony, and these mostly sold under very good competition, the top price realised in the grease being 2ld. To particularise we quote, as compared with the closing rates of the Sep-tember-October sales:—Merinos, super greasy, 5 per cent, lower; average to good greasy, 10 per cent lower; inferior and faulty greasy 10 per cent, to 15 per ftnt. lower; pieces and bellies, greasy, 10 per cent to 15 per cent, lower; Merinos, superior scoured, 5 per cent, to 7A per cent, lower; average to good scoured, 10 per cent, lower; short and faulty scoured 10 per cent, to 15 per. cent, lower; Comebacks, greasy, 5 per cent, lower; crossbreds ,fine greasy, 5 per cent lower; medium and coarse greasy, 5 per cent, to 10 per cent, lower; Crossbred wools, scoured, 5 per cent, lower; slipe wools par to 5 per cent, lower; Merino lambs 5 per cent, lower; Crossbred lambs 5 per cent, lower.

For the benefit of our New Zealand friends we give below the prices ruling for New Zealand wools in the grease: — Merino, good to super, 22 to 254, low to medium, 17 to 204. Halfbred 56/58’s 21 to 23, 17 to 19. Halfbred 50/56’s, 18$ to 204, 16 to 17|. Fine crossbred 48/50’s .16 to 174, 14 to 154. Fine crossbred46/48’s 15to 164, 134 to 15. Crossbred 44/46’s 14Ato 16, 13 to 14j. Crossbred 40/44’s 14 to 15, 124 to 14. Coarse crossbred 36/40’s 134 to 144, 12 to 13A. General Remarks.—The Sales just concluded have proved somewhat disappointing from the grower’s point oi view and entirely failed to justify the optimistic forecasts current prior to their opening. The chief causes for the decline are to be found in reduced Continental competition, and as this section has been the mainstay of the market, as far as Merinos are concern-

cd, for some considerable time, the lessened demand from France in particular, has been felt severely. Germany also has been feeling the pinch financially and has been operating with a good deal less freedom, ami America has given loss support to the market than might have been expected. The bulk of the buying, particularly in ;he latter part of the sales, therefore do volved upon Yorkshire, and this section was naturally not slow to take advantage of the altered state of affairs, which enabled them to reduce values to a level more in keeping with prices obtainable for semi and fully manufactured goods. The fall in values is, however, not an unmixed evil, as it his undoubtedly stimulated trade in the home centres, and reports from Yorkshire regarding conditions there arc certainly brighter than has been the case for a long time past. Prices for the raw material have also stiffened since the sales concluded, and reports from Australia and Now Zealand, where the break in values first occurred, indicate a return of more healthy competition, particularly from Yorkshire, with prices slightly on the upgrade. Tho year closes, therefore, on fl more optimistic note than was thought would be the case, and it is hoped that the New Year will open with prices on a more stable basis. London Sale Dates. —The next series will open on January 19, and further sales have been fixed to commence on March 19 and April 27.