LONDON WOOL SALES

Dominion, Volume 7, Issue 2121, 13 April 1914, Page 5

LONDON WOOL SALES

_ VERY STRONG OPENING ALL PRICES HALF-PENNY TO ONE PENNY DEARER (Fiom'Our' Special Correspondent!.) . ' . London, March 6. The principal item of the week is the, opening. of tho. second series of colonial sules, which, began in Colcmnn Street last Tuesday. The event has been looked forward to with extraordinary interest, due.to what has taken place during the vacation at Bradford and Roubaix.- Even London itself has by no moans been an iiiactiyo market, tho brokers hero having enjoyed a steady flow of business during, the past montli. It may not..be. generally known, but a good number,pf buying brokers are situated in Basinghall and Coleman Streets, those firms carrying considerable stocks. What is'bought one.series, and which cannot be. sold privately, is often icoffered at; the sales, and'these firms have been able to do an encouraging business during the past few weeks, J making a nice, tidy/profit on Mieir wools. ■But' all this sinks into insignificance compared'with the larger offerings which are catalogued:at each day's sitting, and the sales so far have witnessed splendid competition, prices all very materially appreciating. Of course, each buyer views things from his own standpoint, those watching tho interests of Australasian wool growers recognising the grand turn of events, while those having the wool to.buy feel that prices havo more or less got beyond reason, but that matters little. We have to chronicle facts as they exist, and certainly the opening on Tuesday indicated an exceedingly 'healthy stato.of affairs, wool being mopped up in a way which surprised even tho most sanguine. Somo. seem to think we are on the eve of a boom, but that term is very objectionable to the average wool man.- .It.'is perhaps as well to say that values are high and the raw material dear, but in any case -the whole market shows unmistakable signs of expansion, and we saw evidence, of this in the ready way that the.raw material was absorbed by the various sections of tho trade. The Wools Available. Looking over the list of arrivals, we find that there is not a great deal of difference in the character of the wools available, and' the offerings will just about be equally divided between merinos and crossbreds.' The most surprising thing of all'is the limited offeringsof New Zealand crossbreds. There are only about 60,000 bales available, and when, one ■remembers that the quantity is the smallest-for a March'series sinco the present century dawned. As a rule, there are something like 80,000 bales available,' and when one remembers that the quantity of New Zealand now clip wools iw'as very small in January, tho ■ decrease in the arrivals for March is all the moro significant. Of course, it is too early to talk about tho available quantities for the May sales, but, all the same, the 60.000 bales available will' certainly bo lifted with the greatest ease possible, for there seem to be more these wools.than ever before.'_ It is really astounding the avenues into which crossbred wools are to-day going, and with the United States now having a freo hand to purchase, we think that crossbreds have entered upon a new lease of life. We give bolow a table showing the wools which'have been available'for a March series of sales during recent years:— Gross Forwarded New Net

arrivals direct Zealand quantity 1914 350,300 216,500 60,150 111,000 1913 420,000 270,000 76,500 155,000 1912* 602,500 313,500 120,300 273,300 1911 176,600 261,500. 116,200 232,300 1910 361,500 229,000 76.500 141,000 1909 121,200 236,500 93,400 191,500 1908 ...310,700 169,500 92,200 201.200 , 'The second and third series were amalgamated owing to ike coal strike. A Useful Comparison. The outstanding feature of the recent vacation was .the marked advance in prices. The "Wool' Record," Si its latest issue, contained a most instructive table, which is well worth reproducing. Good standard qualities of tops were taken, and the per cent, advance was shown which has taken place in "tops" sinco the close of the January sales, and the opening, of the current series. . We reproduce the table as follows :— " .' .Per.. Jan. 29 Feb. 26 coat Description.. , d. d. advance 70's Colonial top?, avge. '28J 30J 6.08 61's Colonial tops, avge. 271 29j 7.27 60'sColoninl tops, avge. 27' 28J-29 M 7-7.10 60's Colonial tops, ord. 28i 2Si 6.60 64's Cane tops, long ... 27* 291 8.25 58'eCol..tops, comeback 23} 25J 8.51 aS's Colonial tops, avge. 21 . Ifi\ 7.113 50's Colonial tops, avge. 18J 20 8.10 46's Col. tops, carded ... 155 Hi 11.11 46's Col. tops, pickhog .. 15J 171 11.11 40's Col. tops, prepared 15 16$ 10.00 36'sCol. tops, prepared' UJ 10J 10.169 The Trade Ready for Coleman Street. The uppermost thought which one had on Tuesday was that the, trade seemed fully ready for the .auctions.. In fact, the whole ran go of buyers came to Coleman Street in a very different temper from what was seen last series, everybody being on the tip-toe of expectation. It was plain to be seen that business of no mean order was to be done, the 20 to 25 per cent, of American buyers present adding considerable "epico"to tho wholo proceedings. Of course, it is too early to aay ivhafc is going to bo done, but as far as one can .see there is every prospect of- that contingent acquiring a fair weight of wool. It seems to the writer as if at least two important sections of the trade arc in urgent need of .replenishing stocks. We refer 'to Yorkshire and America. It is a fact that importers from Worstedouolis especially, have woke up and realised that they aro short of material,;.and the recent spurt has found the majority missing good business on account of having very littlo to sell. Of course) many now regret their lack of faith in the future of business, and no doubt a very different state of affairs would have oxisted had one been able to see so far ahead. Tho Home trade made the mistake of not operating extensivoly during the month of November in Australia, but, of course, at that time things wore "rotten" in Bradford. Even today many contend that the actual state of business'.docs not warrant tho presont oxcitod state of the market, but many know they ha<~> to keep machinery running,. obligations to • fulfil, which demand considerable supplies, lifnce buying is proceeding in a very vigorous way in Coleman Street Wool ■Exchange. _ Wo' say that the whole transformation- is primarily duo to America coming into tho market, and although its importers are naturally not rohshmg the enhanced pycos they aro confronted with, many feel that' they will have to buy at tho best prices possible, and therefore are doing tlieir" utmost to secure tho raw material at current values.

A Vory Cood Beginning. From whatever standpoint the initial ealo is looked at, only good results can no reported.' Wo find no one at all disposed to complain as to what was seen, tho general opinion prevailing that all wools of decent character e'hoived an allround advance. The opening catalogues were on tho whole good,' although niermos were somowliat sparsely represented.. Tho.only straight clip of wool was Mortlook/2 in circle, from South Australia, and 'those wools being well grown, sound, and shafty, though somewhat red, woro just the ticket for Homo trade top-making purposes. In average,

tlieso wools appreciated about Jd. over last sales' rates, the advance benis* a to 7j por cent. I'or one- lot Id. more was realised, but in tho case of the A combing, exactly last sales' price was forthcoming, and the wools wore li-ot a particle worse. Still, the appreciation averaged at what we have already stated. '.Micro were no good scoured merinos offered, but at succeeding sales uo doubt there will be an appreciation even for these. At tho initial sitting erossbreils largely predominated, there being some Mice N'cw Zeajand now clip wools submitted. The opinion was general that these appreciated 10 per cent., or about Id. por ib. all round. AVe must say that we could hardly see eye to eye with everyone on - this point, as some of the lid. Bradford top-making coarse crossbreds would have easily made 10|d. in January. What.we think appreciated tho most was medium crosebreds when moat suitable for America, and theseat 12d. to 12Jd'. were'certainly 10 per cent.'higher. The few lots of slipes offered allowed 10 per cent, advance. Tite I'unta Arenas were also in splendid order, 'and for these excellent prices wore forthcoming, the appreciation being 10 per cent. A few Ms of greasy Cape merinos wore also submitted, but theeo could be called no dearer than 5 per cent. A close canvas of the marketshowed that the' initial sate was re* garded as very satisfactory, C'oleman Street fully approving of th« sharp ad' yanco which has taken place during the interval in consuming centres. Everything points to America being - a very keeu buyer. The Outlook. With reference to the outtook, Messrs. H. Dawson and Cβ. say:—-"The wool situation has undergone a catu-Elet-o and amazing change since the last iondon auctions. The rapid transition from the pessimistic inaction of the previous six months, to tie excitement and. eager demand of th« past- few weeks, is difficult to explain; but has been due to a somewhat unforeseen combination of factors.

The most noteworthy but least satisfactory feature is that, excepting in .United States centres, tlie improvement is not due to any corresponding revival at the manufacturing end of the industry. So far as the Homo trade is concerned,- tlio spurt is to som-e extent a reaction from tho extreme "beating;" policy of. the past .season, which became' untenable owing to tlie stroiiK position of the raw material, and tlie steady demand maintained by other con. suming centres. The movement 'was badly, reckoned in face of the strength Of the general world-competition outside Bradford. It may prove mostly to the Yorkshire industry, vMeh cannot tail to be placed at a serious disadvantage by having missed tlie ' cheaiser markets; but.tho most striking thing was the remarkable unanimity of opinion in Bradford in favour of tower prices, which from tho Hoaie and local standpoint appeared to be justified. There have been other factors assisting towards the improvement. The American demand has been stea-dily gathering strength and larger volume. Jlie reports from tho States indicate a strong demand for worsted goods, and mills ire possessed of substantial orders. Moreover, there is a relatively email stock of wool in the coun/ry, and importers; havo sold the carl/ purchases of foreign' wools at good margins, and now appear to bp eager to replenish. European competition has not yet bnen seriously felt in the States, and the importations of tops and yartis from lorkshire.have been small compared with raw wool. There is a record contingent of United States buyers in attendance at tho'present .series, mi doubtless their support will contribute greatly to tho sustenance of tire newbadvanced lever of values. . "Tho clearance of old stocks or 'tops in Bradford, and tho 3 per cent, bank rate after a period of scarce money, nave likewise helped towards tne buoyant tone which now prevails. "Stocks of raw 'material in torkslnre are very low, and there is a syßpicion that many topmakfrs and spinners aro oversold, and must new cover their sales. Consequently, actual needs govern tho situation and compel "all and sundry to come into the market, while an extreme pessimism seems to have begotten "an extreme optimism; and, although the rush has came too suddenly to inspire a strong confidence, prospects are undoubtedly improved. Meanwhile, tho keenest interest apjxiara to have been shown in crossbreds,* while merino tops have not yet moved quite so rabidly."