YORKSHIRE LETTER

Dominion, Volume 7, Issue 2189, 30 June 1914, Page 9

YORKSHIRE LETTER

RESULT OF LONDON SALES

(From Our Own Corrtscondents.l

Bradford, May 22. After a storm cotnes a calm, and Joleman. Street "Wool Exchange no longer resounds with the shouts _ of buyers eager to secure wool. Since writing last, the curtain has been drawn over the activities of the London sales, and all buyers have departed to their respective centres. Some Americans went away by last Saturday's boat, others went on Wednesday. The majority seemed pleased that -the finish had come.. It is somewhat trying to wado through 12,000 bales per day, and then sit a further two hours in a sale room listening to tho shouts and seeing tho gesticulations of buyers who frequently endoavour to secure the raw material. But the. scene is all right to those who love tho trade, and to a real bom wool man there is a good deal of charm about, tho auctions in London. Tho > most satisfactory, featnro to growers is high prices, and certainly they are high today. The fact must be faced that wool is not cheap, and whether spinners or manufacturers like it or not, they will have to make up their minds to aee values on <a permanently higher plane than they havo done. Whether to-day's prices are safe and tho situation sound is open to two opinions, but all tho same we aro convinced that supply and demand, in Scriptural language, havo mot and kissed each other,_ and the Erime reason for to-day's values being igh is'that stocks exist nowhere, and all the wool being grown is no more than adequate to meet the requirements of the consuming world. Extent of Amerioan Operations. .We have no need to waste any space regarding the last few days of the! auctions. No changes .took place of any importance, a good buying spirit prevailing right to the finish. Those who held, off in the hope of seeing wool cheaper at the close were naturally disappointed, and their having to buy was the direct cause of the last few days being as good as the previous auctions. Of course the selection became worse, consequently American was hardly so active, but at-the finish the announcement of United States buyers taking 24,0QQ bales caused quite ,a surprise; i in fact, no one ever dreamt of such I large purchases being made on AmeriI can account. But this total only confirms our • previous statement, that American buyers to-day are not confirm ing- their operations to ono single broker, but giving liniits to three or four firms in order to hide their identity. We are not in a position to tay so, but think that 24,000 bales is about the largest total that American buyera have ever purchased at a single series in London, and no doubt many firmn have bought knowing that they will not again havo the privilege of acquiring such good stock until the arrival of the jioxt New Zealand clip: It can be said with all truthfulness that United States operators ''created" iha catalogues, and both in merinos and crossbreds their purchases at times wore very considerable.. They must have averaged well nigh 2000 bales per day, and no doubt their competition was the principal factor in driving values upwards. If American - buyers had not been determined to secure the best offerings, we are' confident that 5 per | cent, would havo beon the outside advance seen; in fact. Jd. would have covered any improverr.eht' : ' whichtli.e"'. Home or Continental' trades wwe'prc-, pared to pay. AI tgj'i't 5 ' Tho following' quotations will show the', alterations which took place compared-with tho close-of-the March series:— AUSTRALIAN. ' Merino in grease, superior, Jd. to Id. per lb. dearer; average to good, jd. to Id. .dearer; poor condition, Jd. dearer; inferior pieces and looks, Jd. dearer. Merino scoured, superior, }d. -to Id.; average to good-, Jd. to Id.; 'inferior, par; faulty pieces-.aritl locks, par to Jd. per lb. cheaper. Merino lamb s wool, in grease, superior,- „par; medium, par; inferior, par. Crossbred, in grease, fine superior, id. l per lb. dearer; ordinary, Jd. to Id. per lb. dearer; medium superior, par to Jd; per lb. dearer; ordinary, par; coarse superior, par; ordinary, par; inferior pieces and jocks, par; lambs, superior, par; ordinary, pa(v Crossbred, scoured, fine, par'to Jd. per lb. dearer: medram and coarse, par to Jd. per lb; dearer. NEW ZEALAND. . Merino in grease, good condition, Id. per lb. dearer; poor, Jd. to Id. dearer; inferior pieces and--locks, par. Merino scoured, superior, Id. per lb. dearer; average to good, -Jd. to Id. per lb, dearer; inferior, Jd. per lb. dearer. Crossbred, in grease,, fine, superior, Id. per lb. dearer; ordinary, Jd. to Id. per lb. dearer; medium, superior, par to Jd. per lb. dearer; ordinary, par; coarse, superior, par; ordinary, par to Jd. per lb: dearer; lambs, superior, Jd. per 'lb. dearer; ordinary, par to Jd. per lb. dearer; scoured, fine', oa.r: medium and coarse, par. slipe, fine, Jd., per lb. dearer; medium, par; coarie, par. Messrs. H. Schwartz* and Co. say that tho net total available amounted to 190.000 bales. Of these 185,000 bales have been sold. 121.000 bales for home consumption, 40.000 bales to the Continent, and 24.000 bales- to America, leaving 5000 bales to be carried forward to next series. Supplies and Distribution. Some very interesting and instructive figures are given in the circular of the above-mentioned firm. The position of tho Homo trade comes out very clearly, and to a large extent supplies tho reason _whr the Home trade buyers have purchased 121,000 bales, as against tho 40,000 bales for the Continent. The reader will gain a very comprehensive idea of how tho various sections of the trade are supplied with the raw material when he considers supplies in their entirety. Adding transit wools and direct imports, including London purchases, for the past three series of sales, the total deliveries to tho trade compare as follow :— Three Threo Series. Serie3. Bales. Bales. 1914. ' 1913. Home consumption ... 572,000 735,000 Continental consumption 1,38!),000 1,149,000 American consumption 125,000 39,000 Totals 2,080,000 1,923,000 Tho deliveries show an increase of 167,000 bales. The Continent has taken 234,000 bales, and America 86.000 bales more, whilst the homo trade has taken 163,000 bales less. The Aftermath. Firms havo now had time to digest the doings in Coleman Street, and tho home trade seems to have takon thc verdict of the sales in a very philosophic way. Bradford gives a very doleful account of the condition of trade, and so far there has been no adequate response to the temper or spirit of London. Thero is a loud wail about the doarness of wool and high first cost crippling business. Bradford users blamo outsiders, particularly America, for forcing up values beyond reason, but, of course, that will not be the view of growers. Bradford firms wero compelled to buy at tho recent London sales to cover old contracts, and therefore tho combined competition of all the trades forced prices on to a fairly high level. Naturally, spinners and manufacturers arc stubbornly resisting current values, and wc regret that business in tho West Riding is not healthier. The fact is, many firms aro running their machinery

with difficulty, and complaints arc num. crous that business is by no means of healthy proportions. \\'o liml merino topmakers quoting 2s. Bd. for a good 0-i's, but, of course, that price cannot bo made. At the same time 2s. 7!d. lias been realised, but a few firms pro determined to have their extreme quotations, and topmakers arp adopting vory different tactics from what they have been doing during recent years. Those who have been caught short are feeling very sore, and not a few firms have lost heavily on the season's trade. This is directly due to selling forward what they have not purchased, and they have reaped what they sowed., All topmikers are firm, but it is with difficulty that more money can be made. To a very large extent "marking time" sums up the present situation, and as far as one can see,'consumption is being maintained. So long as that obtains, wc shall not see very much changc from to-day's wool prices.