LONDON WOOL SALES.

Dominion, Volume 6, Issue 1830, 16 August 1913, Page 13

LONDON WOOL SALES.

FOURTH SERIES. BETTER THAN EXPECTED. (From Our Special Correspondents') London, July 4, 1919. Once more interest is centred in. Coleman Street Wood Exchange where the fourth, series of colonial sales began last Tuesday, Tho event was looked forward to with more than usual interest on account of what has recently token place iu consuming centres. It canoot be said that users are ehort of supplies, and. tlie quantity which at present confronts the trade is very considerable. At a Julr series some bit: quantities of New Zealand crossbreds are usually available, and tho present sales are not exception to the rule. Wo lind that since tho lists closed for the July sales, tho gross arrivals li&vo been no fewer than 255,000 bales, while 175,000 bales have been forwarded direct, leaving, along with tho wools held over from the May sales, a net availablo quantity of 171,000 bales. Out of this no fewer than 101,500 bales are New Zealand produce, 95 per cent of which will bo crossbreds. In addition there are 25,000 bales from Punta Arenas and tho Falkland Islands, these too all being crossbred descriptions. Thus the weight of wool to bo catalogued is considerable. Recognising the position of things, importers and merchants have already decided not to submit at least 30,000 bales of New Zealand wools, a policy which finds hearty approval among the trade. All feel that there is wisdom in not compelling (users to absorb more wool than they can oomfortably deal with, for stocks in oonsuming centres are already considerable, and no section of the trade has oome to Coleman Street particularly hungry for supplies. However, we believe that what is put up will be readily absorbed, and taking the series as a whole, we are looking forward to a gooa time. A number of American buyers have turned up, and although it is too early to say what they intend doing, it is not often that nearly a dozen men are present without giving a good account of themselves, and we are looking forward to them taking considerable weights in anticipation' of the new tariff, under which all expect wool to be imported free. Course of Prices, ■ We give below a list of Bradford quotations for tho leading descriptions of tops at the close of tho sales on May 7, and at the opening the current series (July 1), the latter being in' brackets 70's colonial tops, average, 31d. (30jd.); 64's colonial tops, average 30d. (29Jd.); GO's colonial tops, super, 29Jd. to 29Jd. (29d.); GO's colonial tops, ordinary, 29d. (28Jd.)j 58's colonial tops, average, 2fid. (25Jd.); 56's colonial tops, average, 23$ d. (23d.); 50's colonial tops, average, 20Jd. to 203 d. (20Jd!) j 48's colonial tops, carded, lSJd'. (18d. to 18jd.); 16's colonial tops,' prepared, 18Jd. (18d. to 18Jd.); 4G's colonial tops, carded, 17$ d. to 17|d, (17d. to 17Jd.); 40s' colonial tops, prepared, IGJd. to 16J<1. (lGd. to IGJd.); 40s colonial tops, carded, 15Jd (15Jd.); SG's colonial tops, prepared, 152 d. to lGd. (15Jd. to lGd). A Decent Opening. - Tho opening sale on Tuesday was well attended, tho Exchange being crowded to its utmost capacity. Many buyers are home from Australia, and every 6eat was filled. Catalogues were by means spicy, but contained some good useful wool, ohiefiy of a crossbred character, in fact, this class ot stapls largely predominated. Competition ruled very good, tho home trade leading the van. Bradford top- . makers especially were well to tho front, and gave excellent support. Both Franco and Germany wore found. fairly ready to absorb merinos, and, taking all things into consideration, the initial 6alo passed off well. Comparing values with the close of the May sales, the few merinos catalogued showed no change, and no doubt with a better solectibn, pricc3 will bo firmly established on a full parity with- May 6ales. Coarse crossbreds also sold quite easily at full last sales' rates, but a little irregularity was seen in fine crossbreds, these occasionally declining jd. Slipes also sold a little irregularly, and hardly up to the extremo rates of May, except in tho case of short carding slipes, which aro still very dear. The Punta 1 Arenas wools wero plentiful, and mostly sold "at a full id. decline. South African carding wools fared, if anything, tho worst, tho heavy lots mostly losing ground to the extent of Id. to although snow whites were unchanged. All things considered, the opening results gave satisfaction, and succeeding sales have fuly confirmed opening values. The Outlook. Dealing with the outlook, Messrs. H. Dawson and Co. m.ako tho following observations:—"The past interval has been bo disappointing as regards new business that it iurnishes little onoouragement or stimulus to tho market opening in London to-day. The high bank rate and fclie wearisomo and interminable political difficulties of the Balkan question have had a .deterrent effect on trade in all commercial circles. It has been surprising that tho raw material has 60 long and 60 strongly withstood these adverse influences without any serious shrinkage in values, especially when it is taken into account that in some oentres, notably in Yorkshire, there have been considerable stocks to carry without any strong buying movement simco the last series. .Fortunately all tho principal European centres, with tho exception of Saxony, report a maintenance of consumption, and mills still continue to be well employed. Most of these are, of course, engaged on old orders, and there is now some anxiety to seo new business forthcoming. _ Manufacturers generally have found it difficult to enforce their advanced quotations, but it is felt that tho verdict of tho London market will do much to release orders which hlave been kept back pending the establishment of a firm basis. "The statistical position is unohanged, and every week will now make the strength of that position more apparent and more potent, it can only be counterbalanced or weakened by a falling off in consumption, and, of course, these high prices navo a tendenoy to restrain and to check now business, but so far as can bo gathered the diminution of consumption, except in America, is not serious enough to be noteworthy. The supplies for the year are now well known. In merinos there is nothing to weaken the position at this series, and should any volume of new business be forthcoming the availablo stocks in combing wools would be very inadequate. Fortunately tho Queensland new clip is being marketed, and last week ©me '40,000 bales wero sold in Brisbane, and will help to relieve tho situation in September. "In crossbreds provision must ba made to cover industrial needs until December and January next beforo tho new clip can be got into tho mills. Now Zealand contributes tho hulk of tho wools available for the present year. The South American clip has been remarkably well absorbed, and there has seldom or never been such a small quantity of floating supplies or stocks availablo for sale at this period of the year. "It is difficult to determine whether to take tho American situation as an asset or otherwise in the reckoning. Tho most hopeful featuro is that at last there seems to bo a ohanco of a settlement within a few weeks, an assured result of which must be a largo release of business which has been held up beeauso of uncertainty and tho lack of a basis of values. Whether America or Europe will bo the greator beneficiary or whether all the adjustments proposed are workable aro secondary and. disputable questions, but tho needs of tho population and the wealtlu of the country dx-o sudli that the woollen industry in tho United States cannot much longer remain in a state of stagnation. Tliero is also 110 doubt .that a largo vacuum lias soon to bo filled so far as manufactured goods are concerned owing to the enormously diminished production of tho past two years. The financial stress in Bradford and elsewhere, duo to early arrivals and to congestion 111 tho combing mills, has now becomo somewhat eased. When these facts and tho general statistical position aro all taken into account the period of cheapor raw material, so much desired bv tho industry, does not yot appear to bo at hand.