LONDON WOOL SALES.

Dominion, Volume 4, Issue 1078, 17 March 1911, Page 8

LONDON WOOL SALES.

OPENING OF Till; ITIiST SERIES. (From Our Special Correspondent.) London, January 'JO, 1911. Once more London is the nub of the whole universe, at lea.-a -0 far as Great Urilaiu is concerned, and the \VOOI r,xehange again pic-ems ;•. bu-rj- scene, 'inn usual large contingent of buyers has turned up, and laminar laces an- lo i.v j seen. A larger number from America are over this scries than v.e have seen since last July, but it remains to be seen whether they have tome as spectators, or arc going to'buy liberally. Without being 100 pessimistic, 1 am strongly inclined to think they are only over tor the purpose of operating in medium-class New Zealand crossbreds, but time Will show. It appears to the majority as. if stocks at present in bond at Uostan, New York, and Philadelphia are too heavy to allow of any party, operating on a large scale. However, there is no doubt the American textile industry is au-improviiig one, and if this .month' United States manufacturers are at all successful in booking orders for heavy-weight goods for next winter's trade, then it will go a long way towards seeing American mills run again full time. My reports . speak very hopefully of the future, and indeed there is much room'for-au advance. It. seems to many people, on. this side as if there is to-day a great need of American competition to give "vim" to the European wool situation, and if United States buyers would only get. to work, they, could soon cause a different' feeling to obtain, throughout wool markets everywhere, SUPPLIES AVAILABLE. ! The subject of supplies; is paramount, arid to all appearances wo are likely to see this -question enter largely into the position of affairs during flic next two months. Arrivals are being watched critically every week, and 110 doubt we are destined to'receive, some heavy-weights of raw.material. It seems that over one million bales of wool had been offered in Australia up to the end of December, and practically all this wool is destined for European consuming centres and London. I'only hope that wc'ol'is not being offered ' too'freely and rushed ,to this part of the-world. There is,'just a i possibility at a time like the. present of market prices being broken down with' excessive' supplies, and ' notwithstanding vcrv healthv manufacturing conditions.in Yorkshire, still: I hear that on the Continent there are. signs'of quietness. ' This especially obtains in. France, and I am soiry tliat at Boubaix'. and Toilrcoing condition's'are not as good as they have been. However, supplies to-day arc not unwieldy, and they are jiiot even what they 'were at the corresponding date n year ago. This fact is' very remarkable, and all the more so when it. is remembered that a strike obtained towards the end of IDOn at.Australian selling centres, whereas last year nothing of Hie sort obtained. . Still" the new arrivals arc less than they were the year'previous, and below I show the gross arrivals, the. direct forwardings. and the net quantity available for the January scries during tho past few years:— ARRIVALS FOR JANUARY SALES. Gross Forwarded Nett Arrivals. Direct. Quantity. Year. Bales. Bales. Bales. inn ssi.ooo 193,300 ios.sco 1910 -105,500 . 229,000 ' 180,000 1909 351,500 157,000 187,000 1908' 353,390 181,000 187,000 1907 275,000 121,500 155,000 190(5 ' 291,500 125,000 105,000 1903 235,000 89,000 117,000 1904 190,000 ' 55.0C0 137,000 1903 216,000 82,000 «1,000 1902 211,500 61,000 . . 193,000 INTERVAL RESULTS. I have always contended that out of the immediate" past the near future, is made. This largely obtains at a time like the present, au'd I am sorry to say that during the interval a serious decline has taken place in' wool values. In fact, prices have dropped just like skittles, due ia a large measure to the onslaught which has been niade by the "bear" party on th'e Continental terme markets, Bradford and other centres falling in a similar way. There was no other alternative when cheaper wool was forthcoming at Buenos Ayres, South Africa, ahd also at Australian selling centres. It has been my contention all along that a better buying basis has been the sole concern of tho "bear" party, and even to-day that is .the end of the present set-back in values. However, the fact is there, and tho results are certainly nasty. I show below how prices have moved for the respective qualities of tops since tho last series of London sales closed :— Dec. 6„ Jan. 1, Jan. 11, Description. 1910. 1011. 1911. Colonial Tops. d. d. d. TO's £8 27-i 20-26* b'i's 27i 26'.- 25-1-28 60's (ordinary) ... 25.V 2H 24 56's (average) ... 23 22 21* 50's (average) ... 19:}. 194, 181 46's (prepared) ... lfij 1G 14J-IIJ I 46's (carded) 15J 151 14-14-J 40's (prepared) ... Hi 14-14J 13-13J 40's (carded) 13! 13 121-124 36's (prepared) ... 134 13-13} 124 44's (pick heg) ... 16J lGi 15-15J THE OUTLOOK. Messrs. H. Dawson and Co., in speaking of the outlook, say:—The past interval has witnessed a marked fall in values of nearly all descriptions of wool. The slight increase on a production already large, in conjunction with a less active Continental inquiry, and a dull market in the States, furnished legitimate reasons for some ease in prices'. It is difficult to believe, however, that there is justification for the whole of the heavy decline which lias been registered in terminal tons at Roubaix and Antwerp, and in crossbreds at Bradford. There can be little doubt that special efforts have been made, not by users only, but by speculators, to accentuate the natural movement of values, and thus to produce an artificial price lower than trade conditions themselves would warrant. Whatever measure of success these tactics may have had, they have at least served, to increase the reserve and caution of users generally, including large operators who, nevertheless; cannot much longer pursue a policy of abstention. S6 far as tho home trade is concerned, there is nothing to cause uneasiness. Prices have been undoubtedly too high for an easy and large flow of new business, and everybody hoped for a basis that would be about. on a par with last January's rates. This has been passed, so far iis tops are concerned, and yet confidence, has been lost. Prospects, however, are all in favour of a good year's trade. The cotton industry is. assuming a. better.condition, and the general commerce of the country is improving, while the Coronation year should bring out good business in both men's and women's wear. Continental reports are not so good, and the large speculative bear movements on tlie terminal markets have been disturbing, though it. is doubtful if they can ultimately succeed. An important contributing" factor to the present position has been the unsatisfactory result cf the past year's trading among topmakcrs everywhere, who seldom, if ever, found it possible to buy. satisfactorily during any series, to sell with a margin of profit, owing to the high prices ruling last year, and who in their determination to avoid similar risks have naturally encouraged the "bear" movement. The main desideratum at Ihe moment is the establishment of a basis of values. The largo offerings in London should determine llij.-. decisively before the close of the present series. Prospects are by no means bail, and with returning confidence a large amount of business Would be forthcoming. Fortiinateiv, the heme trade is comparatively bare nf stock, and is ready lo buy, and Ibe suitable selection should afford, under present circumstances, an unusually good opportunity to home consumers. Prices are now al a reasonable level, and with some support from U.S.A. a satisfactory isMic from the present depression should not be far distant. About two-thirds of Ihe colonial merino clip have already been catalogued, and this is n strong point i" favour nf steady values. The American • market is somewhat sounder, and the stocks of wool in bond are -steadily declining. Unfortunately, business there seems likely to be dene in hand-to-mouth fashion, owing t.i the uncertainty about tariff legislation, Iml some steady and regular demand will doubtless be felt in our market throughout tho year. American buyers r.re here, and seem disposed to give some support for the first time since lut March,'