RESERVE PRICE PROCEDURE AT WOOL SALES

Chronicle (Levin), 27 September 1947, Page 7

RESERVE PRICE PROCEDURE AT WOOL SALES

WELLINGTON, Sept. 20. The reserve priee proeedure for New Zealand wool has been altered this year to conform with the proeedure in the United Kingdora, Australia and South Africa, according to adviee reeeived by the New Zealand Wool JBoard from the New Zealand Wool Disposal Commission. This season the Joint Organisation reserve priee valuations oh wool oll'ered at auction will not be handed to the brokers.- The Joint Organisation representative at auetion saies will. wliere necessary, bid the reserve prices at the saie. Wool growers, through their brokers, may plaee their own reserves on any iots aml^ if thev fail to ell'eet a sale they may sell sucli lots at the Joint Organisation reserve prices during the option period prescribcd. The growers may obtain from their brokers adviee about the market valua- ; tions of their wool, in aecordance with 1 prewar practice. Where a grower piaces iiis own reserve 011 a lot at a priee liiglier than the Joint Organisation reserve and there is 110 bid by a commercial buyer at or in excess of the Joint 'Organisation yeserve, the lot is passed to the organisation at the organisation 's reserve. The grower, through his broker, can trv to sell to a commercial buyer and if he is not successful, he rau sell to the Joint Organisation at the organisation 's reserve priee during the option period from tli.e end of the sale of the last catalogue ti! 1 J p.m. on the second day t'ollowing the sale. A further provision is tliat where a grower piaces his own reserve on a lot at a priee liiglier than the Joint Organisation reserve and a priee bid equals or exceeds the Joint Organisation reserve but is less than the grower 's own reserve, the lot is passed to the coinluercial buyer who made the bid anil the grower then has the right to sell j the lot to the Joint Organisation at the | Joint Organisation reserve priee. If he | eannot eifeet a sale to a commercial [ buyer in this cgase, the tiine limit is 1 the savne as set out above. ' The J'ollowing is tui examplo of Ihe I working of this provision: — If a grow- ' er plaecd his dwn reserve of say Kid ; on his wool and the Joint Organisa- ; tion's reserve is I-td, and the priee bid is 1 5d. and il' the grower in sueh case , does not sell to a eonmiercia! buyer at ;a |iriee between 14d aud lfid, he can : sell to the Joint Organisation at the Joint Orgnnisation reserve priee (14d) ' within the option period.