LONDON WOOL SALES.

Wairarapa Daily Times, Volume LXII, Issue 9700, 3 November 1909, Page 2

LONDON WOOL SALES.

OPENING OF THE FIFTH SERIES,

ANOTHER BIG ADVANCE

(From Our Special Correspondent.) LONDON, Sept. 24th, 1909.

Seldom has a series of wool sales begun with so much interest displayed as was seen last Tuesday afternoon, wheu the trade met together for the fifth time this year, Goleniau-street Wool Exchange being crowded to its utmost capacity. That there would be auother sensible advance was already a foregone conclusion, there being just a difference of opinion as tohow far prices would move upward. The September series o£ auctions, as a rule, sees the finish of the last Australasian clip, and the offerings tnis series of about 94,000 bales are very small compared with 2f)4,000 bales at the correspondiug series a year ago. It should be borne in mind that that quautity whs above uu average oft'eniug, the arrivals being largely augmeuted by a carry-over of 88,000 bales from the previous July series. The quautity- brought forward this year was ouly 15,000 bales, and the last clip has moved so quickly that next week the trade will be quite prepared to consider seriously the Australian, new clip. So far as supplies go, there are uo accumulations, although it is our firm oouviotiou that both in Yorkshire and on the Continent, as well as in America, there are larger supplies of wool tha,u some will acknowledge. Take, for example, the stock of tops at German combing establishments. Nobody a year ago, when the trade was just beginning to recover from the misty slump, would be found to affirm that supplies were not largo, and yet last August 31st at German combing establishments the stock of merino tops was returned at 13,800,000 kilos,compared with 3.700,000 kilcs at the end of July 31st, 1909. This seems to us to be fully an average for the time of the year. A SPLENDID VACATION. The past vacation has been the longest that is seen between any series of sales, and, considering that it is practically a holiday time, the business done has been ou a very large scale. August was a particularly busy mouth, and large sales alike of wool, tops ami yarns weru effected in Bradford, on the Continent, and also in America. All users seem to have been in a buying frame of miud, and plenty of Yorkshire spinners have covered all their wants to the end of December. Throughout the trade there has been a general anticipation of one's wants, and there are at this moment more contracts existing both for tops and yarns than have been seen lor some years back. No doubt the fear of dearer wool has been the prime factor in causing these operations, aud it seems strauge that svith the beginning of a new season in Australia there should have been such big sales which were bouud to have their effect upon prices. We cannot resist saying that it appears to many that there has been an unnecessary anticipating of oue's wants, unless the ultimate fabric buyer can be got to pay the enhanced prices which manufacturers are be.ng forced _to quote, aud to fiud merinos and fine crossbreds in particular so high and dear at the beginning of an importing season looks, ou the face of it, a little absurd. However, wool is now a prime commodity on the markets of the world, aud with business being everywhere good, the demand is consequently large. At the same time, ;i most difficult situation confronts the trade, and the present activity is going to determine a high range of values, which will take a good deal of negotiating. As already said, the vacation has I been characterised by a good deal of activity, with the result that I prices have all round seusibly advanced. The following shows what good standard tops stood at wheu the last series finished, and what they were being quoted at last Thursday ou Bradford Exchange :—?o's colouial tops, July 20th 21%(\, September Kith 29>4'd ; (i-±'s colouial tops, 2(5%d, ; 60's colouial tops, super, 2(5 ; 5(Vs colouial tops, 21 %<\, 22,i<id; 50's colonial tops, 18d, ; 46's colonial tops, 14d, 15i^d; 40's colonial tops, I 13d; Sfi's colonial tops, 12d. ANOTHER SHARP ADVANCE. At Tuesday's opening sale all trades were well represented, including a fair contingent from America, aud great competition obtained. The catalogues submitted were very scrappy, crossbreds largely predominating. From the very start competition ruled exceedingly keen, there being no reserve whatever. The home trade was in strong evidence for crossbreds, aud it was plain to bft seen at the very start that prices were ou a higher level. When compared with the close of the July auctions, the following changes were seen:— Greasy merino combing, Id to higher; greasy merino clothing, Id higher; scoured merino combing, higher; scoured merino clothing, higher; scoured merino faulty, Id higher; greasy fine crossbred, Id higher; greasy medium crossDred, 1 higher; greasy coarse crossbred, lri~higher; sliped line crossbred, Id to higher; sliped medium crossbred, to 2d higher; sliped coarse crossbred, higher; greasy Cape combing, %k\ higher; greasy Cape clothing, }£d to %d higher; snow white Capes, Id to higher. No oue can analyse these" advances without being convinced of the great demand for wool, and in very many cases the above improvement is frequently exceeded. At the same time we certainly think that no man can look at the price questiou with indifference, and while no doubt there is going to be a big demand for the raw material, to say the least it is very desirable to exercise caution. Never yet have users heeu able to do any good out of wool bought at extravagantly high limits, and we shall be much surprised if when new supplies are more plentiful to-day's high prices can be fully maintained. THE OUTLOOK. Messrs H. Dawson and 00. in speaking about the outlook say: "The market to-day opens under conditions more satisfactory to the seller than to the buyer. Values are at high level, especially in finer grades, and it is hardly reasonable to expect that when the new season's plentiful supplies are available these "hunger" prices can be fully sustained. The position, however, appears to be justified by the present activity. The reports from every centre indicate a strong healthy trade, with consumption at iis highest point.

Absolutely necessary requirements have created tne situation, and there is an abseuce of speculative iriovel ments. The great feature of the busiWL ness iv Europe throughout the whole ** year has beeu that the machinery was always close up with the supplies. There has never beeu auy chance of accurrjulatiou iv tops, especially as regards merinos, and stocks—as dnr'ug the prev-ious 2 years—promise again to be practically exhausted. Unfortunately, our present September series only furnishes 1)3,000 bales, as against bales last year, to relieve the situation. If we consider the record shipments of the past twelve mouths froui the colonies, the marvellous consuming power of the industry is realised. It lias not only cleared the increased shipments, but has continued to take them freely at steadily advancing values, so far as merino and flue grades of crossbreds are concerned. It has again been demonstrated that, so long as worsted goods aie in favour and the worsted brauch of the industry is active, there is no difficulty about the absorption of the world's wool production. Crossbreds have had a more varied and chequered run; medium and lower grades have not experienced the same appreciation as liner sorts, but,there now a distinct change iv the state of affairs. Thauks to the unprecedented demaud ou U.S.A. account for crossbreds. and the heavy shipments i'roiu Bradford, stocks iv Euglaud have been depleted, and prices have taken a stroug upward movement. It is necessary to take into account that,although business in the States is excellent and prospects most resy, there are plentiful stocks in bond in Boston, stated to be between sixty and seventy million pounds of foreign wool, the larger proportion of which consists of crossbred grades. These will, of course, be steadily drawn upon, but American supplies for the next few months appear to be ample. The prospec; s for the coming season seem good, the prevailing high prices constituting the chief danger, especially in merinos, which during a period of two yeais have been supplying the popular demand. "