Wairarapa Daily Times [Established 45 Years.] TUESDAY, NOVEMBER 16, 1920. THE WOOL MARKET.

Wairarapa Daily Times, Volume 46, Issue 14259, 16 November 1920, Page 4

Wairarapa Daily Times [Established 45 Years.] TUESDAY, NOVEMBER 16, 1920. THE WOOL MARKET.

The cabled report of the London wool sales and the telegraphed account of the wool sales held at Christchurch yesterday, do not make very pleasant reading. The London sales commenced with a weak tone. The prices at the Loudon sales for Meririb were 15 per cent, and crossbred 20 per cent to 25 per cent lower than at the close of the October series. The market for coarse wool is depressed. For most lines of scoured wool there is practically no demand, and it is stated that substantial reductions in prices will require to be made before any noticeable improvement in business is recorded. At the Christchurch wool sales prices slumped badly on commandeer values, representing a decline of quite 6d per pound on medium and low grade wools. Super halfbred fell 7d per lb, and crossbreds met a similar fate. A weak sale for crossbreds was anticipated, but the drop was greater than was expected, and only the best quality sold at all. Tho heavy drop in the price of wool at the London sales will not astonish those in the trade or the average farmer, for it was expected. It is also recognised by the farmer that the outlook is bad. The question that is agitating the minds of the farmer is what is going to happen to the new clip. If the wool is hold over by the farmer, will any good result therefrom? The adverse market today is largely due to the fact that stocks of "wool have piled up. Consequently, the further-storing of wool may not improve the position. If the whole of tlio Dominion’s wool clip for 192122 is held in store, how much better off will the farmer be in the matter of prices'? The fact must be recognised that the position and the outlook to-day are changed compared with those of war time. Under the Imperial requisition we had one wealthy customer who paid cash on the spot and accepted all the subsequent risks. At present market prices the Imperial Government must be losing heavily. Now. instead of the wealthy customer, we have hundreds upon hundreds of impoverished custom-

era who must have long credits if they are to do any business with us at all. It would seem to be a better proposition to follow, the market and quit tho ; wool at the best price of the day. If we adopt a scheme of selling to Germany, Austria, Poland, and France and Italy on long term credits, we will be sending the wool into consumption, but high prices must not be expected, for the pooples of Europe are quite unable to pay fancy prices. The fall in the price' of wool may lead to the cutting up of some of the large estates in the Dominion and t-fie turning over of the land to 'dairying, which, after all, is the only style of farming that justifies the extraordinarily high prices that have been ruling for pastoral Ihnd throughout New' Zealand.