LONDON WOOL SALES

Dominion, Volume 9, Issue 2600, 23 October 1915, Page 3

LONDON WOOL SALES

OPENING RESULTS BETTER THAN EXPECTED

(From Our Special Correspondent,)

London, September 9. The trade.onco more finds its interests largely centred in Coleman Street, where the sixth series of 6ales began last Tuesday. It is a unique event to find the trade attending a sixth series of sales so early in the year, three weeks . earlier than the auctions usually held during that month. Of course, the war has upset tho ordinary routine, and it is to the advautago of the trade nowadays to meet often, and to absorb as much wool as possible as it comes to hand. There aro many members o: the trade wlio think that there should be a colonial sale during the first .two weeks of every month, and no doubt a good deal could 1)8 said in favour of this, but the warehouse officials candidly say that a series cannot bo w-orked in that way, due to the congestion and the poor class of help that is now available. No doubt auction sales are being held as frequently a3 it is possible, and that end of tho trade cjin bo left to those who are expert in the art of staging wool. The usual num. ber ol Iloiilij Lmyera turned up for the opening day, and a few Krencnmen 'are also in evidence, but we should have welcomed a larger display of activity on the part of America. It is quite true to Bay that more American buyers havo left for Australia .. as 'well as South Africa, and everything points to larger operations during tho ensuing season than .last, but all tho same, with 192,000 bales available a' good score from the United Stales would havo been very welcome. , It is our firm conviction that, the interests of the entire bade will be served if more buying was indulged ill by a larger number of people, but the war has created conditions which of themselves, make it almost impossible foT Con« tineutal buyers to be present in any number.

Movement of Values. The interval has been very fruitful aa showing tho lack of continuity in tho high values established for the combed article, . and which were .seen in the months of June and early July. Everybody to-day knows the sky prices which were then ruling, and how 61"'s fops went up tremendously. It is a iact that 3s. Bd., was made by several, but recently they havo moved down until they have bien selling anywhere in the neighbourhood of 3s. 3d., although the biggest topmakers aro still quoting 3s. Id. for spot delivery, largely because they hava none to sell. It is a fact that last week more than one of the largest importing topmakers «>ld at 3s. 2d. and 3s. 3d. for January, and for spot these figures largely prevail to-day. The movement of prices downward in such a marked manner should not have any untoward effect upon wool. In the former tho loss has' simply meant the removal of surplus profits which topmakel-s took advantage of making on account of the exceptional circumstances. Since esport

was stopped, more tops have been available for home consumption, that really" being tho cause of the decline. However, we must put on record tho movement of values for tho combed article in consuming centres, because that is really the foundation upon which prices always rest. .We give below a very useful table, which indicates the prices for standard makes of tops at the close of the last series of sales, and at tho opening of tho current auctionsJuly 24. September?. Tops. d. d. 70's, average 43 40! (it's, average 42 • 39 60's, supor 4-lJ ; 38J 58's, average 37 33 sG's, average 31 32J 50's, average 31 284 4855, average 28-29 | : .2(ii 46'Sj prepared 28 2GJ 40's carded 24 .23 36's, prepared 24 23 Export Licenses.

Tho trade has been making a considerable effort to induce the Government to promise to allow export to tho extent of 50,000 bales of crossbreds in the hope of imparting some vim to the market, olid creating more busiuess in consuming centres. Wo have contended all'along'that tho home trade can afford to do this, and it would bo a wiso step both from a business and economic standpoint if we allowed our Allies and tho United States to help themselves/to a reasonable amount of crossbred material. However, the War Trade Department- has caused it to be known, although it has not been officially announced, that it is prepared to consider applications l'or licenses lor the export of crossbred wool, and although the announcement is very vagus, yet many have faith in being able to obtain licensos, and no doubt will buy reasonable quantities with that in view. Tho missing link undoubtedly is the lack of certainty, and it would have been a real good thing if the aunouncement had been more definite. Evidently the War Trade Department is going to feel its way in this respect. When all is said and done tho interests of the home trade must bo looked after, and whilo wo fully agree to that, yet supplies of crossbred wool, including English, are so heavy ihat reasonable quantities could bo allowed out of the country with absolute safety to our Allies us well as America. A Creditable Start. Tho sale on Tuesday passed off better than the majority ever thought it would, and certainly a better buying spirit was revealed thou most people expected to seo. Tlio two catalogues lacked a great deal, tlio wools being very miscellaneous and far from a good selection Tho merinos wero a very scrappy lot, whilo the crossbreds showed nothing extraordinarily good. Tho latter largely predominated, sliped crossbreds also being well to tho front. For tho merinos the inquiry was JUsU&iblo, ail ftlia gqo.A JT.0013. .that is,

showing any combing length, 39lling well up to the close of last series; in fact, .we thought the best parcels often £d. better. Also good scoureds when suitable for Russia sold' often against the buyer, although tho more faulty, seedy, burry parcels were fully 5 per cent cheaper. It is these wools which certainly are going to mis 9 Continental competition still more. The announcement that the Government is prepared to consider favourably licenses for the export of crossbred wool brought in some American buying, and competition for tho best parcels was distinctly better than expected. Good medium quality lots ruoxlo id. to Id. more than at the close of last series, other descriptions being largely unchanged. Slipes sold the worst of any, after being on a very high altitude for many months, they bid fair to come down rather sbaTply. Tho fall on the opening day was a full penny to IJd. in all descriptions. Scoured crossbreds did not show a great deal of change, but, if anything, were rather in buyers favour. Good greasy. Capes and snow whites were fully-firm, other parcels often being 2.J to 5 per .'ent. cheaper. The opening results generally gave satisfaction, and if no further weakness develops it will certainly be something to be thankful for. Succeeding sales have passed off- very well, prices showing not a great deal of change on opening rates. The most pronounced call is for good wools, both merino and crossbred, and America is still in the field for parcels most favoured by that country in tho past.

The Outlook. Writing with reference to the outlook, Messrs. I). Dawson and Co. say •.—"Tho interval fiiiice the July series, has been marked by an unexpected dullness in the home"'markets. New Government orders for army cloths had been hoped for, but excepting blankets ; and shirtings, such have not yet been forthcoming, and many Yorkshire manufacturers, having completed their contracts, have had to resume their normal trade. Owing to this the consumption of crossbred wools has accordingly declined. "The War Trading Department, in response to strong appeals from the United States, has deemed it to be an opportune time to allow some relaxation, from the present prohibition of exports in crossbred sorts, and an announcement was made a few days ago that applications for licenses to export these wools to the United States would be considered. This has naturally caused some excitement both. in Boston and Bradford, and it is evident that good orders from America. aro already available, subject, of course, to licenses being obtainable. Fortunately the Bradford traders seem happy to acquiesce in tho decision of the authorities owing to the present paucity of new Government orders. It is to be hoped that the War Trailing Department will be explicit as to the quantities to be permitted, so that the market may not be unduly disturbed, and also that buyers should not be left with wools on hand without licenses after purchasing for export. The effect of American support on our market cannot fail to be otherwise than b'enoficial to values. There ,aTe considerable stocks in Bradford waiting for the combs, and, of course, there is practically the whole of tho English, Irish, and Scotch clip intact, except some Mackfaced wool, which has recently gone to the States. On the other hand the balance of the year's supplies of New Zealand wool is practically all visible in London, 99,000 bales being available for this series and 15,000 hales available for the .next series. The arrivals by New Zealand boats are now extremely small, and we, cannot expect now clip wools before tho end of January. "The course of events in South American markets is very uncertnin, but it is safe to assume that , neutral consumers, and especially tho United States, will bo active operators. Therefore it is. very doubtful if the Home trade will be able to buy advantageously in that market. Consequently it becomes evident that business under existing conditions is likely to be for some time subject to the domination of abnormal, and disturbing factors. ~ "The machinery question m lorkshire still constitutes a grave problem, (specially in tho combing section of the industry. It not only cripples tho Home trade, but Tenders impossible the chance of cultivating or preserving any export business. It seems incredible and almost criminal that combs should not be kept Voing night and day- at whatever cost in a situation like the present. Among tho favourable conditions may be counted the prospects of a good harvest both atHomo mid in most of our oversea Dominions. Unfortunately the wool clip in Australia promises to be very inferior in character and length, and also in quantity, .and along with this the scarcity of shipping facilities at the colonial ports seems to be a threatening difficulty for the coming "Tho seventh series will probably begin the last week in October, or tho first week in November. The dote is not yet fixed but an announcement is expected next'week. About 70,000 bales havo arrived to this date, of which. 15,000 bales are New Zealand."