THE WOOL EMBARGO

Dominion, Volume 9, Issue 2668, 13 January 1916, Page 9

THE WOOL EMBARGO

NO EFFECT ON PRICES OPINION OF LEADING BROKERS.' The opinion among wool-brokers in Wellington is HiaC the embargo 011 the export of crossbred wool will 110b materially affect prices at tlie remaining sales of the present season. This statement is tho result of inquiries mado by a Dominion reporter yesterday. Tho chief evidence to support this view is the fact that at tlie last Christchurch sale, held 011 Monday, after the embargo was announced, the prices obtained were quite as good as those for tho December f.ale, exccpt in a few lines, and these mostly of inferior sorts. It was feared before this sale that the absence of American buyers would, by reducing competition, tend to reduce prices, but this proved not to be the case. It is stated that, after all, the proportion of our clip bought by American visitors is not considerable, the bulk of our wool being taken by English buyers, and a considerable 1 quantity by French buyers. There are other circumstances to support the view that prices will not fall because the Americans must stop buying. Tho Americans take chiefly fine crossbred and Romncy'wools, and to a less extent* good merino and halfbred wool, and it happens that at tliis period of the season most of this wool has already come forward. Later in the year come the heavier conditioned wools, and also the poorly-grown and damaged wools from the rougher country. The badly-grown poor wools from tbe high country, and the log-stained wools from the very recently-grassed bush country, do not appeal to American buyers. From a variety of causes it happens that the . Rood wools come into tiie sales early in the year. Usually they come from big flocks 011 land not too far distant from rail or other easy communication, and at these sheds it is not so difficult to get labour at shearing time as it is in the back-blocks. Shearing for these growers of good wool is seldom delayed, whereas tho less fortupate growers of poorer wools are often tillable to arrange either for shearing or transpoit until late ill the season. In view of the fact that most of tlie wools for which the Americans are keen competitors have already been offered, it is suggested tliat the Americans' absence from the remaining sales will not affect prices, seeing that the bulk of the offering at future sales will bo of wools which they would not have looked at under any circumstances. At the last Christchurch sale the only recorded drops in price as compared with the December sale wore in inferior wools, which the Americans would certainly not have bought ha/1 they been operating. The feeling is that fluctuations in price .need cause no surprise when values soar to their present level. At this week's Christchurch sale the prices were from 3d. to fid. per lb. better than at tho January sale in Christchurch ia 1915. Whon this is so a drop of a point or two in inferior wools of which the catalogues do not show any very considerable quantity need cause no'coiiccrn. Practically all the wool afready bought by Americans is now dumped and awaiting shipment, or actually i.ll ships. It is understood that the Government are not holding up this wool, but are allow, ing tho buyers to ship the wool they have bought.