LONDON WOOL SALES.

Dominion, Volume 1, Issue 246, 10 July 1908, Page 10

LONDON WOOL SALES.

GREAT ACTIVITY AT HIGHER PRICES. i (FEOJI OUR SMCIAL CORRESPONDENT.) 1 . London,' May 22. Coleman Street, this week has risen to the occasion, : and it has felt like old times back again. ; Except that prices are in a much lower level than they were last October,'competition is quite as keen as then, operations almost as extensive, and wool is taken with groat avidity. It is really, surprising What a great change has come over the market, nnd sinco 1 last wrote prices have displayed a strong hardening tendency. It is really surprising what a different temper now possesses the whole industry, and prices this week havo be<fn made which show a penny to.lid. per lb. more than.what .was bid for .withdrawn lots -in' March. There is great eagerness to acquire wool, there being nothing whatever in , the way of hesitation in the bids given. The selection of wool has been much better, and this has helped somewhat to improve, market conditions. ' The greatest -surprise of all is the sharp recovery in medium and coarse crossbreds. The latter are now }d. to -Jd. hotter over the best rates current in March, all the initial decline having been recovered. Where good 40's fleeco wool was selling at 5d.. the second week in March/ tho -same wool is to-day making 6d., while shabby pieces and bellies which seldom made more than 3}d. to 4d.. last series, are today at ,4}d. to sd. Brokers are meeting the market freely,, and this is helping to stimulate overybody. ' During the last three nights the Continental section has improved wonderfully, and is to-day operating with considerable freedom. Better reports are . coming from the Continent, and this is undoubtedly what was wanted. All along both France and Germany have been very sparing in their demands, but buyers think that, with the outlook sensibly improving, it is time to buy. I can't say that men have lost their heads and are buying extravagantly, but at the higher prices there is great activity, apd withdrawals,are very few indeed. The home trade continues to be the chief supporter, Bradford especially taking the lion's share. : It is really delightful to see the extensive operations on home ,account, and all the.more so when Bradford so. recently was de-. pressed. .The situation in. crossbreds wears an I altogether different face, and trade is .bound to benefit. ' . . ■ . ■ , • ■•. .

- . THE/DECLINE RECOVERED., Merinbs have not bounded forward liko crosdbreds,: but are unquestionably better. Prices are now on the highest level of the .close in March, the: 10 per' cent: initial decline having been fully recovered.' Wools offered this week, and . whieh were up at the close of last series, have made same prices, and frequently a halfpenny more. There is a very good demand for long,combing greaso, which is scarce. Even average-grease merinos are selling better' than scoureds, duo I -think' to' the Continental section not buying as freely as they, might. What is selling the worst, is short; heavy, seedy, burry, extract -parcels in tho grease, and thesb seemingly are not wanted. Bradford topiiiakers and , Continental spinners are . certainly buying everything very - freely, and there is. now.'overy. prospect of a firm finish. -' ' , • ■ Cape produce is-also meeting a firmer , market, and, part of the initial fall has been recovered. . Good snow whites aro selling Jd. to .Id. better, long combing grease, is fully, Jd. to jd/ higher, while shabby, heavy wools' remain .unchanged;' ... With wool selling, so much, bettor, the reader can see that the outlook hns vastly improved, and everybody appears to be in better'heart. The rot is stopped, and we . have seon the bottom. I am open to admit that, like everybody else, I am greatly surprised with the sharp recovery, and especially with the great buying spirit which has come over all alike. Everybody came to. London expecting to ob-. tain cheap wool;'and witlr everybody buying, it has lifted things out of the ditch. At tho same'..time! the future is very hard to skill.. It seems strango that in face of general trado' slackness, many manufacturers ; going short time, a".big earry-ovor ot something liko 90,000 bales, a now English clip just being shorn,I and the prospect of a largo, and glorious clip from Australia next season, that the' temper of the market, should, have . so- .suddenly changed. It must be 6aid that the "bear" factors' appear stronger than the "bull" influences, and if trado only' responds to .'the inspiration of Coleman Street,' prices cannot help but improve. During the week more yarn orders have, been placed in Bradford, and much better reports aro to hand from both Germany and America. The situation has. considerably improved, wool is being picked up most readily, and there is now a prospect of a general improvement all round the market. ' ■ , BRADFORD PUZZLED : As could only, be expected, tho situation in London has "capped" all Bradford, and everybody, cannot reckon-up tho truo meaning of Colonian Stroet. It is recognised that prices there have gone considerably ahead' of those current in Worstedopolis, and how to 6ize uptho:sit.uation:.nobody can tell. Spinners natur-: ally resent the idea that the upward move in London is due to actual consumptive requirements, but that speculation is the order of the day. It is certain that many people have taken tho bull by tho horns, and are determined to put money into _wool while'things are low. In Bradford there is certainly a stronger disposition to advance prices, and it is certain that topmakers are'now demanding more monby; While prices have been'advanced, new business is not'forthcoming as'one-would expect in view of London, and thing'a in .Worstedopolis are not by any means on fire. That centre is rather going to feel-its way'to improve prices than bb rushed into something that is not.waranted by actual trade conditions,, hence there is likely tq.be'a great strusgle botween these two strong factors. The' way Coleman Street is going is suiting woll those who are carrying stocks of dear wool,, but the largo quantity of standing machinery, and the many mills which are going short time, is not .such a healthy sign, in face of rising prices. If . Coleman Street can induce manufacturers and fabric buyers to place yarn and piece orders, then real lasting , good will be done, but that issuers not yet, 'so clear. Topmakers aro.all asking a'penny more for. all qualities, but there is as yet not any largely increased .turnover. The tone is better, the feeling is more hopeful, but business generally is not by any means active. Mohair shows no improvement, everything being quiet. Bradford as a whole is waiting to receive an impetus from some source, aud if London can' bring about a/better feeling it will do lasting good to. the whole industry. What is wanted is' more confidence, and this should now be forthcoming.