WORLD WOOL VALUES

Press, Volume LXI, Issue 18419, 27 June 1925, Page 12

WORLD WOOL VALUES

AMERICA DISTURBED. (rzou 07?- ovrv co2HZsro::nEsr.; SAX I'RANCISCO. May 26. America's questionable policy cf world isolation once more made itself evident when the alarming r/wj was cabled tn the United States from Australia. >"w Zealand and London, of thi astonishing break iu wool values. and., while the facts were published in the American Press, there was a. notable disposition at th» outset to protect the American wool holders from a lowering of prices, on the plea that whatever was happening in the outside world should not be allowed to have any depressing effect upoii__ Uncle .Sam'i speculators in wool, furthermore, the manufacturers were not inclined to countenance a. falling domestic market in view of their enormous commitments with the wool-raisers in various parts of tiie countrv. for their contracts for the delivery or wool hav» been on a large scale, especially in the West. The idea was than Americans could weather the storm without permitting Europe or the Antipodes to check high, prices ruling in the United States.

Gradually it dawned on the American dealers that outside influences were bound to affect the American situation, and the operators iu Boston began to show a worried look. Ono New York authority thus expressed himself: '-The movo in London and Australia in curtailment of offerings in wool is a desperate etfori to check the apparent debacle, which, in many ways, rivals the most depressing situation of the post-war period." In all quarters sentinjent was expressed, indicating that the American wool and woollen goods industries would eventually become unsettled in a worse degree than at any period of declining prices on finished goods in the history of the business. Confidence Lacked. In America the most significant feature of the cable news was the fact that buyers appeared to Jack corldenco at the unusually sharp decline in prices. Soma American wool men interpreted the London and Antipodean conditions' to show evidence that thp congestion, for the time being, at least, at the variotis secondary markets had reached a stage which had made it impossible to absorb further quantities of wool, except on a highly sacrificial basis. No American wool handlers are assuming that prices will suddenly drop in the United' States, but it is recognised that prices have now reached a point where a trading basis may be established with seme sense of permanency, and one newspaper added: "Particularly as it would appear that Australia has learned a lesson from her previous vacillating policy." Concerning the wool price break, the "New York Journal of Commerce" gave prominence- to an editorial on the subject, in which the editor stated: "The controversy over the existence or absence of a. raw material deficit, has been settled by the buyers. Sir Arthur Goldfinch's estimated annual excess of consumption over production mav bo statistically unimpeachable but, like all statistical estimates, it rests upon the assumption drawn from past experience. Physical shortages are ivery often translated into marked surpluses when prices are maintained' at figures which buyers consider too high. arid, the raw wool market is not unique in this respect. Faced by Losses.

"Mills that have acquired'stocks of raw wool in anticipation of price advances are faced by losses due to more or less disastrous shrinkage of inventory values if the market for raw wool breaks. On the other hand, confronted with statistics to show that shortages impend, and knowing' that there is a determined resistance to price • adjust7nents downward; it may be equally disastrous not to anticipate requirements. The position occupied by the middleman in any such disorganised market is equally intolerable. His only alternative to cautious buying on a hand-to-mouth basis is to gamble on the course of future prices, with no proper guides to action."

Just before this dispatch left San Francisco, there was a slightly better feeling in the Boston wool market following the news that the sales in Australia had been postponed until. July, and that the London sales had been also discontinued. 2so one in the American wool circles expects the market to regain its lost position of the past four months, but it is bolieved that at length constructive effort is being made to get the situation in hand and that there is no insuperable surplus of wool in the world to be overcome, but that rather, on the present basis of values, there is-ja starting point for the manufacturer and the buyer of goods, which was not in evidence under the demoralised conditions of the' last few months. Proof •of the improved conditions in American wool trading was- the announcement that one of tho buyers of the French worsted mills had taken 2,000,000 pounds of Utah wool.on contract at 40 cents per pound.

METHVEN STOCK SALE. The fortnightly stock sale was held at the Methvon yards on Thursday. The yarding of 1221 fats was considerably larger than anticipated. Doubtless this is accounted lor by tho recent mild weßther, and tho fact that the -works will close down for the season in tho immediate future. Tho fat section consisted mainly of ewes of moro or less indifferent quality, while in the lamb pens the bulk of the offering comprised principally tho tail-end 3 of mobs. The top price of thj day was secured for a pen of six .it 335, sold on account of Mr .7. T. Aicken, Hcthvca.-On account of Messrs Stone Bros., "Wr.imarama," a nice pen of 38 lambs brought 32s lid. On the whole, the fat market was good, buyers pnying well up to schedule rates. The store market was represented by 376 sheep, mostly wethers with an odd pen of hoggets. All sheep offered iold well, and practically a total clearance was effected. A small yarding of cattle was offered. Pigs, mostly stores and baconers, brought good values. Tho following were the principal sales: —Thirty-nine fat ewes at 22s 6d, 13 fat ewes at 20s, 17 at 25s 2d, 16 at 20s, C fat lambs at Has, 33 at 32s lid, Ift at 28s, ,46 at 275, 31 at 295, 6L halfbred wether lambs at 24s 2d, 28 fat ewes at 19s 6d, 31 at 255, 6d, 42 at 10s Od, 15 at 19s 7d, 27 fat lambs at 28s Id, 37 at 28s Cd, 75 nt 29s Id, 41 nt 25.5, 70 six and eighttooth half bred wethers at 265-2 d, 65 zt 25s 6d, C 4 at 25s sd, 25 sound-mouth ew-.i in lamb at 28s 7d, 24 mixed sex lambs at 18s 4d, 2 springing heifers at £2 7s 6d, i calf at 12s 6(1, 1 dairy cow at £l2, 1 bnror.er at £3 13s, 1 at £3 12s lid. 1 porker at £2, 1 at £1 17s 6d, 12 fat ewes at 17s ]d, 36 at-20s sd, 18 at 19s 3d, 21 at 20s fid, 50 at 245, 1 fat lamb at 29s Cd, 49 at 27s Id, 67 crossbred wether lambs at 23s Cd, 1 bneoner at £4 Is, 3 store pigs at 28?, 97 fat lambs at 25s sd, 52 fat cwos at 22s 4d, 38 fat wethers at 34s 3d, 9 fat ewes at 16s lOd, 8 at 15s 9d. 27 at 225, 24 at 23s Id, 22 fat lambs »t JOa f>d, 16 at 29s 75 at 30s, JlO at 28s, 29 at 27s Od. Several residejtial and business Mocks were offered by the Loan and Mercantile and Agency Co., on account irustcos .'ate Chas. Spray, but bidding failed to reac'i the vendors' reserves. LEESTON STOCK SALE.

• There were again very small entries at the fortnightly stock sale 4 at Leeston yesterday, but the attendance was about up to the average. Satisfactory prices were obtained for fat etock, and etorea showed very little chango compared with the valuc3 rulinjr at the' previous sale. Only two or three small lots of sheep •rero "penned. Breeding ewes mado 2Sa Id, lambs 28s 6d, aged ewe 3 13s. Bacon pigs brought 765. Cd to 110s. 6d, porkcra from 60s, large stores 28s to ' 613 6d. weaners from Ps £d»

The only cattle sold were aged cowa, 27s to <33s.