LONDON WOOL SALES.

Dominion, Volume 5, Issue 1378, 2 March 1912, Page 15

LONDON WOOL SALES.

ANOTHER SATISFACTORY OPENING, (From Our Special Correspondent.) Bradford, January 19. Once again Coleman Street Wool K.teluiugo is alive with interest, due to the beginning of the first, series of sales, which commenced on Tuesday. There was naturally a large attendance of buyers, every available seat being occupied at the initial sale. Those who think that the glory has departed from the metropolis m> far as the wool trade is concerned have only tu enter the sale room any night during a .series to hud that the attendance is as large as ever and competition as keen as in any other market in the world. Those colonial growers who had the common souse to consign u> Coleman Street last series did infinitely belter than those who told in the colony, and unless we nvo greatly mistaken we shall lind tho same obtaining this series. Business as a rule is very brisk, and -is far as one cau gauge tlie opening results thern is every appearance of there being nmothor excellent time. The purchasing power of tho trade is really .surprising, when compared with, say, twentyfive, years ago. It wa.s good then, but there being now so many public sales and centres where buyers ca.u operate, it is rcmarkablo how well supported they all are, and it can be taken lor granted that vrhero such a merchantable commodity as wool is offered for sale, there the eagles will be gathered together ready to devour the prey. Ono thinks that it is rather a good "thing for humanity that such a largo supply of wool is ready for being ,b<H><rht, f or if there wero no more wool being produced than there was ten years ago, famine prices would obtain. It will certainly bo a dark day for trade if ever another drought visits Australia and lasts for half-n-dozen years as was tin, easo in IS9B and 1901, for thero is not too much wool being grown, and there is every likelihood of the wants of the w.orld becoming larger in the future. At the end of each year the clips of tho Southern Hemisphere get into very small compass, and European and American buyers seem to be quite ready for liftin» tho new arrivals when they come to hand in November and succeeding months. However, the trade assembled in fangood heart last Tuesday ready for the fray, and, all things considered, a hearty welcome awaited the offerinss.

LIST OF ARRIVALS. The list of arrivals is just about what was expected, thanks to some heavy cargoes coming in during the last week before the list was closed. Considering the largo quantities of wool which are to-day being sold at the centres of production, a net quantity of 181,500 bales is not to be despised, nnd as ono looks down the list, there does seem to bo very much not worth noticing. The gross arrivals total :!52,000 bales, which is 32,000 bales less than for the corresponding period a year ago. There has also been less forwarded direct due to somewhat late arrivals, while the net quantity is 17,000 bales less llinn for the January scries of 1811. From now onward the new clip from Australasia and the Cap \viH bo pouring into this country and the Continent in increasing quantities, consequently the trails cannot but be fairly wel! supplied with the raw material. A year ago there was available 58,800 bales from New Zealand, whereas to-day the quantity is only 45,500 bales, and there is likely to be'a very keen demand for crossbreds for the Dominion. This seeni3 to us to be one of tho principal features in connection with the arrivals.

VACATION RESULTS. Little need be said hero of how things have fared during the interval, although the immediate past always has a very important bearing on the opening. We know that big sales of tops and yarns always menu a keen demand for the raw material, but the vacation has not been characterised by a groat move at (lie manufacturing end of the industry. Still, there has been a steady, continuous trade done, and wo are glad to be able to say that the trade in prospect is such as to indicate that the raw material available, will be wanted. Tho Home trade certainly keeps up the best, and although a few factories in 'Iliiddersfiehl are on tho quiet side, still in the aggregate some big <|iuuitilios of wool are being shifted weekly. No doubt the industrial outlook tends to unsettle the market, and disturb confidonce, but it is remarkable how wool prices were maintained all last year in face of many adverse, factors, and if the present cotton trouble and coal strike are settled, wo don't anticipate much giving way in the price of wool. Of course, a coal strike could more easily bring mills to a standstill than a cotloii strike, and it is Ihis contingency which wo are fearing. However, so far as prices for tons and yarns a'-e concerned, thev have remained very steady, tin l result being that buyers came to the opening prepared to ray.values on a level willi last series. Many seem lo think that to-day's rates are about justified, and in view of heavy arrivals, and Iho trouble in the industrial world, tint high-.M' price* arc not warranted.' No doubt the outlook is a little oTY-cure, but. we think tint tho want* of the "world are (|iiite pqunl to present supplies, and given a >-ptt!eirfiiit of the present troubles, the textile industry will be maintained at about the present level. The incoming of America into the market as a buyer has no doubt altered Hi" complexion of things, and siwb an additional fae.br cannot but make for the good of the raw material. A GOOD START. Before a big concourse of buyers, the initial rale passed off very well, and everybody apuearrd satisfied.' The three opening catalogues were above an average for an opening day, there being a specially go-d -how of merinos. Crcs-hreds were rather poorly represented,,there bob" only one >'air-si;:cd clip, and no Sniilli African wool* whatever were submitted. From the very start bid* were freely given., the Home trade being' nromi'nent. France did middling. Germany wing mere or less on the quiet side, ft was scon apparent that merino prices were moving very lnneh in sympathy with the of la-t serirs. especially for good fine "re-iß.v combine, a few lot* of pieces and bellies being it times in buyers' favour. Crossbred": sold furiou-ly, Aworic.iu competition being distinctly felt. For all fine and medium lots an advance took ple.ee of 5 per cent., while coarse parcels were oar to .3 per cent, dearer. Slip"s nl-o fnred -imilarly. At the end of I lie sale all alike seemed |>Ipu'?vl at the results, and the fact of wool selling sr freely -hnv.-s that Ih" raw material is yet wanted Since the opening nirht the sue cording sale* have puscd off wo'.l, prices being fully maintained.

THE OUTLOOK. In their usual circular. Messrs. H. Dawson and Co. write as follows-.—"The opening of the present auctions takes place under conditions that are unusually interesting and not a little perplexing. The basis of values during the past few months has hcea.a very debatable and uncertain, one of these being tho revival industry, particularly in the homo trade, has so far been nnwilliii!; to accept the level ruling in the colonial markets. Tho values of tops, especially, have been persistently bslow the colonial basis, and tho topmaker and merchant have, in consequence, found business difficult. In most of the European markets there has been during the whole of the season a notable lack of confidence, and an absence of buoyancy that is difficult to understand v.ho.i compared with the remarkably heavy sales and good values realised in. the colonies. Probably 100 great an impoKanee has been given to tho rjiiiotor tone and the less rosy outlook which have obtained in (he fine worsted section of the industry, while uol sufficient account has been taken ol Hip. small stocks in the liantN of the consumers at the commencement, of the season, which lid lo a larger absorption of the early wools than has been exputed, and which showed that the industry as a whole was hungry for the new sva-rn's clip. It is also neci'S-ary to iuke note of Uie fact, which is becoming more prominent each year, that the aclual consumer, especially the Continental spinner and manufacturer, is more and more securing his supplies direct from the colonial markets, rather than through Ihe lopmaker and merchant, and is ilm- less unverned by fluctuations in the top market-. The pessimism which has prevailed in the various home markets was. however, to a largo extent instilled, although it was probably overdone, am! those who slill believe Ihat lower prices for merinos are due have no! In face the fact that there has been n clc.irrmce of 1.057.00(1 bales of wool up lo December 111 in the various Australian marki'i-. The trade now ansiun-ly waits In sec if London will cjnfuui tiicsc colo- ' nial values for moriuoa.