LONDON WOOL SALES

Chronicle (Levin), 5 October 1946, Page 5

LONDON WOOL SALES

(Special Correspondent.)

AUSPICIOUS REOPENING

Received Fridav, i .0 p.m. LONDON, Oct. 4. The tliree weeks' series of Londoir wool saies j'ust coucluded, are regarded by traders here as an auspicious reopening of wool auctions in Britain. The saies iinished 011 an excellent note and better in some respects than that 011 which they opened. About 40,000 bales of New Zealand wool were included in the total disposal of niore than 100,000 bales of which it was estimated that iess than oue per cent. was witlidrawn through failure of connnercial bidding to reach tlie niinimum reserve prices. The complete clearanco indicates better than anything else, the suceessful nature of the saies. It is trne that, as tlie saies proceeded values tended to settle down a lii.tle from the extreme premium levels ruling at. the opening but tliev remained for tlie tnost part a few penee per jiound above pre-.iuly issue prices. More important still is the fact that as they reeeded a shade from the peak, much wider competition was in evidence and values at the close were suppbrted by a mucli larger bencli of buvers than tliose at the opening. To that extent tliere was a niore healthy tone about t.lie saleroom in the linal stages. The moro extreme rates were paid only by a restrieted number oi' Continerital huyers but towards Ihe close Brilish firnis were buying stronglv and in tlie last week of the saies, look a larger proporlion of offor.ings. The saies afforded an inforesting insight to market background faclors and it is possible that some of these applv in the Dominion markers as well as in Ihe T.ondon spot market. Continental Ktirope has been repi'esenled in the

London saies by. France, Belgium, JSwitzerland, Norway and Wweden, some of whom paid tlieli igliest prices of the series for superior wools; ' in'ices which Yorksliire could not follow if the tirms were to l)e guided by controlled wool and eloth prices here. The Continental abilitv to pay these prices may be due to anv or ali of the following considerations: — First ly, unliinited access to the very best tvpes of Dominion wool; secondly, conlidence in wool as a world comniodity in jneference to eerlain currencies which may inflate; thirdly, the fact that intermediatc wool products sucii as tops and yarn arc comniauding scarcity prices in paris of Continental Eurolie. As the two last nientioned are probabl.v passing factors, this would explain why otlier countries may foei unable to follow the more extreme prices some Continental buvers have bid. An unexpected fcature of the London saies is that, contrarv to expeetatious, Fuited States bought practieallv 110thing. This, it transpires, was due to the official United Hlates ruling which imposes on United iStates wool dealors, an iniport price ceiling which makes it virtuallv impossilile for them to buy Dominion wool at today 's prices either here or in the Dominions. Tlie infport ceiling is understood to be ten per cent. more than the official selling prices of Dominion wool at the close of 1941 and it is doiibtfsl if wool will be available at tlie price in the. open market today. Because of this ruling — a rccent oue — large United States buying commissions for tlie London saies were cancelled and it is possible that tlie Dominion innrkets had a similar experience. The TTnited States avooI trade is believod to be taking the raatter up with Ihe authorities here.