LONDON WOOL SALES.

Dominion, Volume 2, Issue 592, 21 August 1909, Page 8

LONDON WOOL SALES.

OPENING OP THE'FOUETJI HEitIES. A SLIGHT DOWNWARD TENDENCY IN MEE3NOS AND OEOSSBREDS. ■ (From Our Special Correspondent.) London, July 9, 1909. The wool trade lives by its members keeping it going, and as timo■ passes larger numbors aro cngiifTrt in tho work of hnndling tho raw ma-, terial. This ia as it should be, and shows that healthy conditions prevail at tho manufacturing end of the industry, just thp eaino as is in the various countries where wool in grown. I have now had a lifetime in connection with tho material, both' ia its . raw and manufactured state, mid it can bo truly eaid that thoro is as much interest manifest in tho courEQ of as over. Tho opening of any. series of woo! salts is tho signal for a largo number to assemble in Co'.oinnn Street Wool Exohango, and last Tuesday Quite an r.rmy of buyers put in an appearance. No'matter what mny be tho Btate of trade, no matter whether conditions are good or bad, tho usual concourse of buyers assemble from all quarters, and last Tuesday saw a big number of people turn up. I di<l not flntl a very strong tone oppressed as I went .round valuing, 'and the best that was said was "tilings might hold thtir own." Such a verdict at the best was not a very inspiring one, but one never knows what London is going to do until men get to work, and we see what prices they ,aro prepared to pay. Gouerally speaking, the various members of the trad'o confessed to brine; ready for somo wool, but many acknowledged that they would rathor have' eesn'prices remain steady in consuming centres, ana the Brisbane sale last Friday maintained ,tho puce indicated at the, sale previous. ■ ■ . A GLANCE AT PKICES.. I always think tho beginning of any series of sales is an opportune time to take stock, for the opening h really tho dividing lino between one, sories and another. The course of values l during any vacation determines practically the course, of the raw material, and, as a rule, n. rise or fall ia, echoed in London nt tho beginning of any series. ■ As in well known, tlio lato interval was' exceedingly disappointing, the new business offering Standing out, in sharp contrast to what obtained during the previous months of the current year.. After all, nothing bettor could be expected. It is impossiblo for any. man to- go on buying indiscriminately montii after inouth, henco the trade done, although disappointing, really mndo no difference to the shifting of. the raw material. In Bradford, combers, spinners, and manufacturers were as busy as ever they were, and yet prices slightly gavo wny. In tho following table I show what were quotations for leading descriptions of tops when the May series finished, and what they wero Inst Tuesday, and I also givo tho price at which they, stood at the opening of the July series, 19Cfi: — . ...... '."■"•'.■. - July 14, May 21, July 6, ■"•• '■■■■'. ■; ' . ' ..■ .- 1908. .- 1909. . 1909; '..... d . 'd.- d. 70's colonial tops. .„ 24J , 29 281 64's colonial tops : 24 • J8 27J 60's colonial tops 23 27 26J £6's colonial tops ...'. 181 22 21\ 50's colonial tops 15J' lEi ICJ 46's. colonial tops .'. 12J 141 ,14 Wβ colonial tops ....' ' 10J 13 12! 36's colonial tops' ;....'. 10 ■' 12 llf 32's colonial tops 91 11 1C? 64's Cape tops 231 27 261 ' 60's Buenos Ayrcs tops 213 ,28 ' 253 : CONTINENTAL CONDITIONS. The coming to London of 'a largo number of French nnd German buyers has given one tho opportunity of sounding them respecting trade 'conditions in their country. I find that very similar features characterise their trade to what we Jfe in Yorkshire. AH machinery in going, they have plenty of orders on their books, and aro busy executing them. As for, new business, that is in abeyance. It seems that >a . large number are ready for buying afresh providing they al-e satisfied that Drioes are going to be maintained, but several I have talked', to rather favour lower prices. Trade in tops is ou a very rsduced scale, the most interest at lioubaix being entirely confined to Australian and Buenos Ayres merinos. As tho same time combers are well supplied with work on orders taken, previously. . Manufacturers ;of the'better class dress, materials have recently booked .considsrablo. orders for plains, while fancies are being bought ,very cautiously. Indications for the next eumaier season point to tho continuance, of -smooth-facud materi&lß, and if .that-is so,.'.it-, means'-well.for fine morlnos. •■'• Among oth»r classes which are eaid to promise a good ealo trc.'.coirsu Cheviots in plain shades. Futuro.i in. tops, have ruled extremely "dull," and prices are tending dowuwards. . ■.. ' AMERICAN CONDITIONS. . N I was reading the other day a-very interesting communication from the United . States which tlciilt very minutely' with textile conditions across the Atlantic. Tho title was a significant one, "Optimism." After.dilating upon mills ha-vinx ''orders in band for as great a distance ahead as they care to accept them," tho writer weat on to tell ua- "but it- is not so much' the manufacturing situation as it is the baying "end which causes general optimism regardiutr'the future. It may. be claimed that the; operations of certain buyers during the last few months havo been in a sense speculative: While this seems capable, of proof with regard, to a very small minority of dry goods buyers, yet to-more than offset such a condition-'is tho' status of the overwhelming majority who have been Jiving from hand to month for a long time. Take th'e general viow of dry Roods jobbers— they hfevs by no means, supplied tbemielvea with enfiicient to last during the fall season.' It is J,ully expected that when thoy begin to make shipments of-fall merchandise they will bogin .to realise the depleted conditions of their stocks, and will come into the market for liberal quantities. Advanco business with the retailer has been fully up to normal, and with the on-' lartcment in buying capacity, by tho masses, the purchases over the counter must necessarily increase." ' . : /. JUST A DECENT OPENINO.' ;Last Tuesday ; saw -the opening of the-fourth series of sales,, but. Nothing very startling can be chronicled in connection with the same. Tho 'three Catalogues submitted wore t distinctly' disappointing, there being hardly-. <t decent lot of merino? offered.' Fully ■ three-fourths of. the wools, consisted of very ordinary crossbreds, arid consifieriny all things the initial sitting stood the tist very well. All buyers p-tike confessed to being r little sceptical as to what the. results were going to be, but on the whole competition turned out fully as good as I ever oxpectfid, thoujh at times there was considerable reserve nhown. Tho Homo trade was in evidence through the wfcolo sitting. ■ the crossbreds being beat suited for Bradford topmakors. Some' fair weights of shabby merinos only fit for carbonising -were taken for Germany.' Very.fine Sydney scoured ukin wools rather hung firo.. Tho com-, petition, on. tho whole, wan' good,, though at timc3 when the New Zealand slipes. were being offered, things .rather dragged. Speculators' wools which, were'-vory heavily limited, also had to be taken in on sovural occasions, but straight lots sold readily and well. .CHANGES SEEN. When compared with the average of May closing rates, tho following changes took place.:— Grease combing merinos About par Grease clothing merinos Jd. to id. lower Grease faulty, merinos • j'd. to Id. lower Scoured combing merinos Id. lower Scoured clothing merinos :... Ad. - lower Scoured fe.ulty merinos id. to id. lower Grease fine crossbreds ....:.. No change Grease medium crossbreds, good stylo ' ; No change Grease medium crossbreds, ordi; : hary 3d. lower Grease coarse crosebreda, Ordi- ■ nary .........'. Id. lower Sliped crossbreds (all descrip- ,- tions) }d. to id. lower Cape grease combing Par to Jdrlower Capo, snow whites Par Punta Arenas crossbreds jd. to id. lower Tho general impression at the close was that, considering tho shabby offerings, the 6ile had passed off well. America hid come into tho market in a most liberal way and exceeded the expectations, of the majority. Many felt thatwith a better show o£ wools we should be back at tho close of tho May ratos for all good combing merinos and crossbreds. The wools most difficult to move were the shabbiest. . . ■'.'.'. THE OUTLOOK. ; ' ." ': 'Messrs. H. Dawson and Co., in speaking about the outlook, say "the past interval has been marked by dulness in most of the European wool centres. "New" business has been very scarce, and it is not surprising that a slight shrinkage in values has to bo recorded in some classes of tops. It has been, however, a natural and healthy pauao; a breathing time was necessary, for tho r;ce had been• sufficiently quick.' Nevertheless, thero is as yet no easing of consumption; mills are fully engaged, and concessions on futuro business are not readily ■ entertained. It has' to be remembered, however, that the bulk of the • present deliveries U being made on transactions which were negotiated at lower prices, and new business is face to face with a-, considerably-higher level of values. "The. completed figures which MossrJ. Dalgety an,d Co. furniah of the Australasian shipment's up to.Juno 30 enable tho trade to gauge the supplies ■ for. the remainder of the year. Last year's figures did not correctly show' the season's actual production, owing to wools'bein" hold back beyond June 30. This year tho old .clip' has bpeu practically cleared out of. the colonics, and for correct comparison as to increased production it is better to 'tako 1907 figures, which show that there is an increase of'-production, in two years of about 198.C00 bales, of which 65,000 bales arc from New Zealand. It is extremely gratifying to realise how easily this has been absorbed, and it is a tribute to the soundness and stability of the industry. Of course, so long as the call continues for worsted goods the absorption i 3 well assured, and • the augmented supplies need furnish no immodiate ground for anxiety. : "Mcanwhilo it is satisfactory to know that there, is a . cautious . Spirit everywhere manifested. In many quarters prices are not trusted, and there is a disposition to run risks in selling rathor thnn in buying. It is not.a disadvantage that the rapid advances of previous sales should rcceivo a check, but at present .there is little to encourago those who are hoping for a materially lower level of values. The visible supplies are, of course, in striking contrast .to those of twelve months ago, but tboy do not furnish the pstfoet criterion; moreover, the higher values of this season',-if maintained, cannot encourage consumption to the • same extent as "last year. The prices paid in tho Brisbane and Sydney sales arc, however, a fair indication that new business on the Con. tlnont is still available at a level but oliehiiy removed troiii Uie highest of the yoar.".