The Dominion. MONDAY, NOVEMBER 22, 1909. THE WOOL MARKET.

Dominion, Volume 3, Issue 670, 22 November 1909, Page 6

The Dominion. MONDAY, NOVEMBER 22, 1909. THE WOOL MARKET.

■ The last of the series of London 'wool sales begins , in Coleman Street to-morrow, and special', interest attaches to the courso of the market. At all'tho sales that have been so far held in New Zealand not only have the catalogues been' appreciably larger,'but prices also: have been., much higher than those interestcd.in the trade anticipated., E'emarkably high prices were realised at: the Wellington sale, 'and still better were the Tesults, secured, at .Ohristchurch, Avhere the wool offered was of a better quality, from the buyers' point of view than the 'offerings in the North Island. It is also worth'noting that in the interval betweon tho Wellington; and Christchurch sale's some, .of .the buying representatives were advised by cable to extend their h'hiits, • and; consequently were in a position to make higher bids a,t. Christchurch. • At the sales'in the Commonwealth centres prices have fluctuated; but the position across the water has been affected to .some extent'by the dispute :b'etwe'en: the buyers and, the ■<, brokersjv-the-' tightening of tho London money market, .and the coal strike' at : Newcastle.: ■■' Nofe: withstanding the favourable features displayed by tho market'as illustrated:;by the New Zealand sales and those in Australia, it is- still -a question,whether London values to-morrow will'be oh; a parity with colonial prices, and/this doubt arises from several causes.: ;.' v ■ '.■•'.: ■The Antwerp wool' sales held last week cannot be accepted as a safe; and reliable guide of the London: market, but they indicate .the feeling oh tho Continoht. . At the Antworp sale buyerß were scarce; and: 9ut of 2086 bales offered, 624 bales, ; or only 25 per cent:, changed ' hands, and prices: were about one halfpenny below the September rates.: London operators may seize upon .this declino to depress . the market, and may or may not succeed,; If we compare the quotations for Bradford tops, which appeared in our issue ;of Saturday, with those:'of ,September' 22, just after the opening of the fifth series of London wool salesj wo obtain -ano.instructive table.' The figures aro ; as under:—'■['■ , ■ ■'-'■'.: :•■ l;~ ;■:'.. ' ■'. v,:"' , v..v ■' .' ■'• "■■■: '■:■■;■ . ,■'■ '.■" "'■•' Sep. 22. ■ ■ Nov. 17. •'V:- :; Tops.;'".'■■:, :-.:,: d; ■'■.•' '.•■■'. ; "d..' .. : Forties .;...;..'.;.............. 13t . : 131 ' 'Forty-siies ......V.......... 15{ : ; .' ' 16 : - ■ Common 6O's .......i..; .', 27 : 25j Super; Go's. ..;.;V;i... 28 f ■ ; ' 26} •■'••' ■ Shrty-fours ;....;...........„: 29 .•."■: .■• 27J V. It will be' noted that the merino counts: are now appreciably lower than'they were; in September, while the crossbred and half bred descriptions are firm.; This movement was forecasted by-us; for in writing on the wool market in an editorial on .July 8, we remarked :.—"When tho relative values of merino and crossbred wools are 'taken into consideration, the latter are too low in price, so that even if there is a fall in merino it does not necessarily: follow that thore will, be a sympathetic movement in crossbreds. ; The outlook is rather for an advance in ; crossbreds, or for a further fall in merinos to bring the two classes into a safer price relation. We think i crossbreds will' advance, perhaps not at the current sales (July), but at the sales later on." The views then expressed were not only fully justified at the time,but seem to be warranted ovcn|now. Merino wool will in all probability register a further declino to-morrow, arid we are led to this opinion by the fact that future'deliveries of the higher counts of-tops, are quoted much below the spot .prices/ The quotations wero given in our London commercial cables published on Saturday, arid are reproduced here to emphasise our conteritibn:— ■■■.- -." ■-..■. ■•''■'..'•'■■'.■'.'■' - : ■!, ■■.'.': . ' .;"• : Spot. Future.. ' : - ■.-■..'■'■' . •'• . ■ .: '•.'. d. /■ -', ■ d. :■ /Common 60's 25} 244 ■'•' Super GO'S .;.... 20} . '. 25} Sixty-fours. 27J . . . 261 : The quotations for "futures" show a decline of; ljd. all round, and as the wool to be offered to-morrow following days must in the nature of things become tho tops of tho future, it is not likely'that high prices will rule for the raw material. Crossbred wool does not appear to bo affected to the same oxtont,'and may esdape the iniluence of the downward movement. There are two points to'.be kept in mind.. The Antwerp wool sales , o depressed, and merino tops arc lower in value. Those advorso features will be exploited for all they'are worth by those wanting crossbred wool, consequently there may be a backward movement in that class of wool, although we do not think.it is probablb. A great deal will dopend upon the attitude of American operators. The representatives of American manufacturers have been buying very freoly r ia Australasia, and have not hcei-

tatcd'to.pay top prices for any clips they wanted. The American textile trade ie very active, and a big consumption of wool is going on there; at the same time it must be remembered the increased production of the staple in Australia, New Zealand, and the Cape will bo quite equal to meeting the . increased American demand, leaving what might, be termed the normal production : for supplying -the steady European demand. Once again it must be asserted that the position de-i ponds upon the American demand. It is' a question whether the strength of that demand as rightly estimated. It may be a great deal'stronger than we think; on the other hand, it is just possible that we have obtained a false view, of the situation, through the characteristic exaggeration of the American. However, the tone of the market will bo known on Wcdncs: day morning, : and that is not long to, wait. ■ •■•'■■.■■ '■■, '■■■ ■■■.: ' ■•'. ;"■■'■-■'■ ',■■■