LONDON WOOL SALES,

Dominion, Volume 4, Issue 1015, 3 January 1911, Page 8

LONDON WOOL SALES,

A BETTER OPENING THAN EXPECTED. THE OUTLOOK. \Vrom Our Own Correspondent.) London, November 25,' 1910. Once more interest is centred in Coleman Stre3t Avool Excnango, where tho sistn and final series of sales for the current year began la>t "Wednesday. Here we have iocused the buying power ot practically the whole wool world, and it is noteworthy that what Coieman street does to-ciay, other markets will do Vo-morrow. This really is tho iirst series at which there will ue offered any quantity of "new clip" wools irom Australia, and we shall soon see what kind of a reception the raw material has had at the bands of buyers. Members of the trade know that a new season proper opens when Adelaide throws down the gamitlet at the end of every September, hut this year Sydney forestalled the South Australian capital by beginning on the last Monday in September. By this time of the day something like 700,000 bales cf wool'have been sold, it now remaining for Loudon to submit its first consignment. It is too early yet to give a definite opinion, as to tho nature and character of the new clip, Init notwithstanding - ..numerous complaints about shprtness of staple and the presence of large f«uantitie&-.'of seed and burr, 'we .have every reason for saying that some very good wools will this season be catalogued both in . Coleman Street and elsewhere. We. are satisfied that with i plenty , of rain, from shearing .to shearing, nothing short of a . good clip can.- be grown, and ,in face of largo, .-supplies it is some'satisfaction to-know that trade is good, and the demand is likely to l>e keen and well sustained through the entire year. • Regular readers have been ; kept fully apprised week by week of what has transpired in consuming centres,, and ip is well known that while business has been somewhat on the. quiet side, still all things considered a steady trade has been done, the best feature of all being continued briskness at all mills throughout the' United Kingdom. • The woollen and worsted trades, of Europe ever ,, joyed a more prosperous time than they have dona this year,- and without doubi. record supplies have beeu met with an equallv . largo and continuous, consumption, "in. fact, prices have been saved from seriouslv falling by the unparalleled demand which machinery, has made upon the raw material. Mw notes ot warning, have been sounded during the nasi two months about, wool being high and dangerous, but alter all is said and done- consumption is such that, given no "unforeseen and untoward factors, the raw material is well able to take care oi itself in view of the large needs of users throughout England and the Continent. - The principal. business done since the close of the September .series has consisted of forward sales of tops and yarns, many firms making provision for trade with tho turn of the year. It is customary from Septemte "to November for users to deal somewhat extensively in futures, and with prices hardly lading to tho low level expeeted, it is generallv bclicvcd that less business of a forward character ha* been done than usual. Nobody cares a great deal about that simply because-there confronts the trade very adequate supplies, and with little Hk?liness of prices advancing further, th n majority feel comfortable and satisfied with their, position. All things considered the position cf the woollen and worsted industries to-day is satisfactory, and that being so it has paved the way splendidly, for a time in Coleman Street. The outstanding feature of the wool, market tj-day is a knowledge that the raw material will be wanted at all about to-day's rates, and so lonrr as mil's' all keep going at the pace they are prices are well able to take care of themsolves. '

The qYio : tion of supplies is of imuottance and conccrn to everyone, and affects alike the selling .broker and the buyer. Shearing this year in Australia bewail early in order that owners niipht catch the' November, saks, or sell early

in Australia. The gross arrivals this season are just a shade less than they were at tho, corresponding series a year ago, and the quantity forwarded direct is alio less by about II.OGO bales, while Ihe net nufiitiity available, including 13,000 bales held over from the fifth series, bring? the total up to* 117,000 hales which, with about 2f>oo bales from Punta Arenas and the Falkland Islands, mnkej the total 120,000 bales. If one eliminates (he Nqvember scries, 1903, which it will be remembered was a .slump year and when large quantities were carried forward each series, then the quantity, nt present to be sold is about normal. Of. course, in. 1901, when only 79,000 bales were availafcV?, ihe flocks of Australia were' only just beginning •to recover from the previous eight years of drought, but to-day the quantity is fairly good, in view of tho large weight that is now being disposed of at the sources of production. This series is going tOjbe a time for merinos, the bulk consisting of new clip wools from tho (.Commonwealth, New South "Wales and Queensland contributing a, long way the major portion cf the offerings. We expect owners will bo disposed to sell at current prices, and that policy can bo recommended.

When one surveyed on "Wednesday night te_ animated scene in Coleman Strset "Wool Exchange, it surprised many people to see the large conccurso of buyers, in face of the fact that practically every firm was also represented at one or more selling centre in Australia, New Zealand, South Africa, or South America. That fact alone gives the reader a general idea of the ramifications of ths wool trade in general. .In this respect alone there has been a great development, and to find firms represented in nracticallv every other selling„centre speaks volumes for the important position of tho wool trade in the business of the world. Tho fact is, the production grows a-pace, and the offering of supplies is so important where the wool is grown, that iirms of any standing can ill afford to ignore other felling centres, and to find Coleman Street as crowded' as ever shows distinctly th.o strength and absorbtive capacity of buyers both at Home and abroad. In this respect ' alono thero lias been a tremendous development during recent years'.

The initial sale pasi-ed off, distinctly better than expected, and prices for the best wools showed practically no change compared with tho close of 'the September series. . The Continental scction gave excellent support for. tho finehaired Queenslands. We hardly thought shafty Adelaides sold as well as they might have done, and for these prides must be quoted par to 5 per cent. down. Tho greatest fall was in tho shabby, faulty, burrv parcels,. and hero the declino was fully 5 per cent. South African merinos also gave, way 5 per cent. The few lots of crossbreds catalogued fold readily to tho Home trade at fully last sales' rates. The .opening was a particularly good one, and wc shall do we'l to see the level maintained to the finish.

Messrs. H. Dawson and Co., in speaking about the outlook, "The past interval liar, been chiefly marked by a very keen struggle for values at the Home centres, where consumers seem disinclined to put firm faith in the maintenance of the current level of prices. In Bradford, and in other centres to a less degree, there is a persistent determination to go . cautiously and to buy only for immediate and urgent

requirements until the. situation is clearer. It is very nuzzling that v prices remain so firm in ibe colonial markets while this oninion is so general here. l''e\v are disposed" to operatj ireely at the existing rate, and Cou'ii spinners alone ,-eem to be giving steady support. The position is ail tho more illogical when it is realised that topmakers in all the centres anr.car to be willing to book forward at romewhat lower prices than those ruling in the colonial auctions. Spinners aro ccrtainlv occupying the more favourable position "at the moment, and they are undoubtedly responsible lor the firm maintenance of values in the oversea markets. Worsted manufacturers wh° have been so well employed during the year 'arc not quite satisfied with the way in which the new season's business is developing, and find the competition of the Scotch tweed makers keener tlian for many years. "On the other hand, it is important to remember that large drawings nave been made on the vear's supplies, some 600,1101) bales having been sold in the Australian markets up to the ■ end of last week. Prospects are also slowly but' steadily. improving in tho United States, and it is probable that their support will bo felt in our markets early in the new year. "As regards erossbreds, there has been considerable forward selling at-.low prices in Yorkshire, although it is difficult to understand why crossbred sorts should have weakened at all, as everything appears to point to a strong and sustained demand, with probably somo further preference being given to crossbred qualities during the next season. During the last few days the Bradford market has been somewhat'stiffened by the firm quotations cabled - from New Zealand and Buenos Ayres." ■