LONDON WOOL SALES.

Dominion, Volume 6, Issue 1687, 1 March 1913, Page 18

LONDON WOOL SALES.

•: A COMMENDABLE OPENING. (From Our Special Correspondent,) London, January 17. i. Onco again (.he interest of tho whole is undo is centred in Coleman Street, when tiio first series of sales began on Tuesday. 11 it is well that this big event comes round is periodically, ior it clearly defines the acd wal standing oi tho raw material, anc : shows it still figures prominently as o t, leading commodity in the textile work! t- There liave been limes when i.ondon has demonstrated a weak situation, but to-duj i- is not ono. of them, and while there ar< t on tho horizon a. lew unsatisfactory tea--9 tures, in the aggregate the position i< sound, healthy, and good, it is ouitc d true that wool oceupies to-day a somewhal - high and dignilied. position, and values i are abovo normal, but the consuming cut of tile trade is still so hungry, ior the i- yaw material that even at current rates ;t it is being ireely bought tho wido world •- over with considerable avidity. It is not so much a matter of wool being high thai is tho bugbear of tho mujority, but \iie !- important question as to whether firm; d in tho trade can afford to buy and obtain - a profit by manipulating it. Judging from the busy mills in the West liidint , and elsewhere, it looks as if spinners and - manufacturers even at current rates, art woll able to continuo using wool and make t" a profit on same. . There liavo been tinier : when wool has been higher, but never has [. there been a period when it can bo said to hav6 rested on a more secure founda--5 tion, for trade was never better, and :barI ring political, financial, and industrial - crises, it is generally believed that this s .year will see a continuance of the present ) piping times. The wholo trade came toI gether on Tuesday seemingly ready for business, and the offerings this series are i certain to be sufficiently good to call ■ forth all the latent energy of buyers. : ' WHY WOOL IS HIGH. Beforo dealing more particularly with tho course of the initial sale, it is well worth asking the question, Why is tho raw material occupying such a high pi.si- > tion io-day.' Tho reason is not far to seek. At least two important- factors have contributed to tho present standing of tho r#w material. They are good trado and a shortage in supplies. We are 6trongly inclined vo think tnat tho latter circumstance has been played for all it is worth, and when-wo put one alongside tho other wo -sso how important both of them are. Trade, as we have already said, was'never better, and tho fact is remarkable that ni'ore raw material is being consumed to-day, and will bo want- . cd in the future to keep the present machinery running than ever before in the world's history. During tho past five years there has been a great expansion in tho consumptive capacity of tile wool world, and it is safe to say that more raw material will be wanted m the future to keep the larger quantity of. machinery running than runny think. For instance, tliero must have been a 15 to 20 per cent, increase in the consumptive capacity of the woollen and worsted mills during tho past few years,, for new machinery and looms have been .installed right and left in every .manufacturing country -in tho world. If Australia is 'ever again visited by a succession of draughts, it is not hard to conceivo where wool values will go. Whilo the industry is confronted with a 300,000 bales shortage in this season's Australian clip, there is also tho fact that trade i 3 good both at homo, and abroad, consequently not less 'raw material is wanted, but more. This has certainly had an inspiring effect upon rnw wool values during the past- two or thrc-e months, and we feel certain- that this series many users will make an effort to buy to stock, although at current .values it cortainly looks a little dangerous .'buying more wool than can' be immediately used. Howuver, there is still confideneo felt in the .future, and that is the prime factor in prompting users to etill continue their operations. 1 DECREASED QUANTITY AVAILABLE. Tho list of arrivals , has been watched witli great interest during tho interval, and at ono timo it looked as if there was going to bo very little wool indeed-avail-able. During the last ten days tho list was open several boats arrived, bringing large cargoes, and this to some extent has put a new faco on tho offerings. As a matter of fact, there is a net quantity available of 135,000 bales, this foing 40,500 bales less than at the corresponding series u. year ago. lleally speaking, we have to gd'back a good few years to find an equally small quantity for a January series, but it can bo taken for granted that at least for the first five series ef London sales this year there will be less wool available than last. Ah far as one can see London selling brokers look likp encountering the full brunt of the sensible decrease in tlio current Australian clip, for many, growers are sailing their wool for the first time in Australasian markets in order to. take full advantagp of tho present high values which are ruling. If all goes well, many will repent their action, for as far as one can sec, there is every likelihood when tho weight of thp current clip is out of tho way. of even lusher prices obtaining for merinos, especially later on. Tho initial sale passed off very well in-, deed, thank's to spirited and general competition on the part of all sections of tho trade, America taking a few lots of medium crossbreds. The selection of merinos was very good, and all things considered, a very creditable sitting took place. Then '.compar&d with the close of last series , we .cannot say that/ super greasy merinos showed much change, but medium combing merinos ruled slightly in sellers' favour,,and occasionally commanded J-d..more. Tho improvement was most marked in necks, broken and pieces, while all faulty wools easily made last sales' closing rates. Super merinos showed no change. The selection of Cape wools was very limited, and any change was slightly in buyers' favour. Crossbreds, sold freely, fine classes being par, medium descriptions about par, while coarse qualities were a little irregular, and the same must to said for slipes... Still, competition was rery pood throughout, and every description of raw material was above a parity with the combed article in Worstedopolis. Succeeding sales have shown a full maintenance of opening Tates and the auctions ire going splendidly. The results of tho npon-ing sal© were regarded as bring very ;aljsfactory, and there is a concensus of •.pinion that the foundation upon which £*de generally is .Testing is sound. Tho Balkan question is still with us and that a a littlo tantalising, for it is certainly handicapping a good many Continental trms and can easily lead to trouble, tho nartinl; dyers' strike'in Lancashire ind Yorkshire is also another disturbing actor, but many say that as we nassed liTough a national coal strike last ilarch vithout wool pricos being in the least iffected, the trade can get through tho iresent difficulty just as easily. It is to ve hoped so, but the faot must not bo tVit when dyers and finishers itrike, it means the holding up of both voollens and worsteds, and if it continues 'iiy length of time, it can seriouslr 'affect he whom situation. Apart from these actors, the-ww! situation is undoubtedly otind ami healthy.' .We c-.ee no reason ,whv lie trade sljould not lift all tho r.urrent upnlies. for' wherever one turns, the raw naterial appenrs to bo selling in a very ireditable way and prices aro firm. THE OUTLOOK. .Messrs, H..Dawson and Co. in their licular make tho following observations conditions under p'fcicii the wool sales have opened to-dav re, oil the whoje, very satisfactory, and ro such as to mspiro confideneo in the osition of tho raw material. There has •eon during tho pnst interval a slight auso lji business, especially in crossbreds, ue principally to the accumulation of arns intended for.export to the areas af?cted» by tho Balkan trouble. Soino unnsiiieav has also bpen experienced in iiatlford by tho fears of ifl-c fleets from jio dyers strike. ( Tho passing awav of !ieso clouds on the horizon would in all robabihty result m a' (|'uick revival of lint aiul of inquiry in the home trado, here stocks aro light and mills are well 2eupicd with orders. The home trade p to now has not b?en a heavy purinser in tho oversea mnrketsowin 1 * to the ise-repancy in values between the colonial ivol and the lower prices which have ion current for tops in the Bradford lark-ct, and which has resulted in a combatively small hnnd-io-inoiit.il business tiring tho past week. Topinalcers and miners,liavo ofl'ered strong resistance lo le advanned values, but the statistical isition of tho raw material is fo strong lat the issue so far ha? been against tho mmiiner, and tho small supplies at tho resent series will not givo much cncour-

ogcmont to those who hoped to find any malori.il relief."

llio latest reports from the sources of supply unfortunately corroborate the large estimates' of shortage which have been previously given, ami a decrease of 250,000 to 300,001) bales .from ViMrnliii seems likely to be fulfilled. South Africa also reports a slightly lessened prediction. In Argentina (owing to the prosperous condition of the frozen mutton trade and the extensive killing of sheep) there appears to he a steadily decreasing supply in tho and coarser crossbrcds. 'The all-vital question at fcuo is whether tile present large consumption can be maintained at the high values ruling to-d.iv in tlio finer sorts. Manufacturers report that it is difficult to enforce,adequate advances for their goods, and many express the opinion that orders will be curtailed and will bs transferred to lower and cheaper qualities. Although prices are there seems to bo but little weight of evidence to favour any serious weakening of values, especially if the possibilities of American competition .are taken into the reckoning. The United States has been very reserved in its operations this season being occupied with its tariff alterations! But mills are well employed, and foreign wool will be needed sooner or later and at present it looks as if that demand will be focused entirely on London this year, seeing that the colonial and South American markets are now drawing to a close.