LONDON WOOL SALES

Dominion, Volume 9, Issue 2687, 5 February 1916, Page 14

LONDON WOOL SALES

DISTINCTLY DEARER MERINOS & CROSSBREDS (From Our Special- Correspondent.)

■ London, December 9, 1915. There is always a certain amount of interest when any series of London sales are on, and the opening of tho final auctions for the current year last Tuesday marked the commencement of a new chapter which to all appearance when written is going to be of importance. It does seem on the surface somewhat strange that as the year closes we should find values steadily advancing, and especially in view of the fact that the trade isengaged in lifting another new colonial clip. But tlipn tho attitude of tho trade seems to have completely changed compared with a few years ago. The advent of a two million-bale Australian clip was tho signal for strong bearing operations, many people being greatly concerned regarding the ability of the industry to lift and consume such a weight of wool. But that attitude no longer obtains. No section =cems to-day the least concerned when they are confronted with 500,000 bales. There are so .juany to be satisfled, so many daily wants are created that however rapidly the London and colonial sales come round, there seem to bo sufficient buyers on tho spot to lift every bale. It was with such feelings as these that the Homo trade came together last Tuesday, thero being not the least concern regarding tho 101,00.1 bales which are available. As a matter of fact this quantity is about the smallest the trade has been confronted with at any period this year, and to all annearance thore is going to be- little difjficulty in lifting every bale. What, at the moment concerns men is not the wool, but the ability of the warehouse keepers to get the wools on show, and also sufficient light to enable buyers to give a. careful inspection and valuation.,

A Real Buying Spirit, No, one durst urge the plea that tho Home trade' is not at the moment well supplied with raw material, for speak to whom you will, they say that they are well stocked, and yet they, seem able to find new capital to invest in wool, and are doing so in real good spirit. What does it amount to? It simply means that when buyers have big weights sold for future delivery they are prepared to go on operating, and that is really the crux of the whole question. The recent ' interval, though short, has been eminently satisfactory, a big business has been done, and all topmakers and spinners are apparently heavily sold forward on future account. The fact, is, , there is no end of trade, Home and export houses all being prepared to buy, which is a real good thing for distributing centres liko London and our colonies. ■ Practically speaking 61's have risen Sid,, per lb. since the lowest point wns touched in l September, the, sharp rise all being the outcome of a big business in consuming < centres, coupled with very strong advices. America has been largely responsible for forcing the pace and without doubt business is good. Everybody came to-Coleman Street last Tuesday very cheerful and feeling comfortable, the excellent margins in all branches of the trade being the cause of it all. As a matter, of factj even to T day, high as wool is, top-makers have a margin, and they are naturally prepared to,do their best to gp on buying. The interval, as already said, has l>een very goad, and there is "nothing like a good time between two series of sales to put everybody in good, buying mood. Manyfeel that the strike in Melbourne lias been of real' advantage to the current scries of sales, as many topmakers who have bought heavily in the market, and wlio are largely committed to-make deliveries of tops, but cannot get the wool, must now look to London to supply good weights, consequently they havo set to. work and several firms have done well.

I Wools Available. There is nothing really calling for special comment regarding the quantities which are available. Adelaide figures very insignificantly, and apart from New South Hales and New Zealand, the lyools to hand are below the .average. If wo take West Australia, there is a distinct falliug off, for as a rule ■ the last series of the year sees a commendable quantity to hand from that State. > There are naturally some very good new clips to hand, but the wool shows unmistakable signs of being drought affected, and instead of there being plenty, of shaft and body in the staple, what topmakers call "guts," many clips manifest hunger fineness, and aTO deficient in length. As a matter of iact, there is an abundance of quality in the wool, but. that is about all that can be said. One would very much have liked' . seen a - better display „f South Australian merinos, for it is these wools wluch are wanted, but they cannot be sold both in Adelaide and London. More than on© firm has expressed regret when they have seen the cable reports of Messrs. Lldei, Smith and Co., Ltd., that thev li«n e been denied the privilege of seeing well-kuown clip offered in Coleman Street as last year, but tho writer replied that they must- send out a buying order to whero they are sold, and it needs no Solomon to forecast that when tho war is over Australian sales will grow still larger both by way of buyers being present and. also more .wool ..offered The aggregate offerings figure around' 104,UU0 bales, including' about GOOO bales from Punta the Mkland Islands, and tho AejrZcaland wools Mill be nearly .all slipes, The trade is hungry for greasy fleece, but it is not there, and a good many firms are to-day buying slipes in order to make up their blends for combing purposes.

A Splendid Opening. No fault whatever can bo found with com petition at the initial sale, and sueceednig 6alcs have fully confirmed the opening- advance. There were throb sellers 'on tho opening day, and pride of placo must bo given to.West Australian wools ivhioh certainly revealed an exceedingly strong market. Tils' advance generally exceeded expectations. Some of' the importers would have it that the advance was a to 7J per cent., but tho majority thought that tho average rise was (i per cent., or say fully Id. per lb This is by 110 means n bad rise after what took placo a fortnight ago, for tho last three days ot tha seventh;series revealed a hot market, prices appreciating a good penny from the lowest point of that series. Even wnsty merinos sold the turn against the buyer: in fact, some considered that spatty piec'es often appreciated to 10 per cent. Good bulky scqureds never made higher prices, a record'figure being paid for Cxibb/Port Tlullip skin wools, two or three lots touching 3s. per lb Tho more faulty and burry parcels of ' that marie sold splendidly, and certainly appreciated 5 per cent. The offering of greasy crossbrcds was very poor, and what few lots were put up easily made a good penny more, but the outstanding feature of tho evening was the way scoured comeback and fjno crossbred wools sold, these appreciating often Al. brensy lambs also moved up 21 to 5 per cent. AYe could not see a great deal of change in the sale of sliped lialfbrod and thrce-quarterbred lamba, bui the more wasly parcels appreciated about Id All these advances 6'lioiv clearly the strength of the present situation, and in face ot such prices, everybody must admit that the standing of wool is exceedingly sound. Tho homo trade was a verv keen buyer, a few useful bids were mado by France, and America was by no means silent. Russia, too, was a very active competitor for good, clean scoured wools. Tho Outlook, Writing with references to, the outlook, Messrs. H. Dawson and Co., say "Our closing market for the current year finds itself subjected to a demand which, in strength and width, almost approaches a boom.' It seems as if all tho year's records in values are to be surpassed for .crossbreds and good merinos. tt heavy operations on United Slates and Continental account in all the_ colonial markets which have far outstripped the Homo 'competition, and at prices which havo exceeded all Yorkshire ideas. Tho persistence .and keennoss of tho demand have clearly indicated that requirements were hoavv or that there nxisfod a front ennfidpnoe in the future of the 'market. It is difficult to say how far the movement has been encouraged by speculative operations. Probably the fear of ro-imnojitjon of the embargo on has led to some.

abnormal buying; whilo tho optimistic views which are held in some Quarters as to the short duration of tho war may likewise havo inilncuced traders with speculative tendencies. Thorn are, moreover, factors of a more solid and oermanent character to be found in the serious shortage and in the inferior calibre of tho year's merino supply from Australia.

"Tho position in crossbreds has been rendered difficult by tho fact that the South American market hns been com-, plctely controlled by the operations of the' Gorman houses there, who havo secured almost tho whole of the crossbred offerings up to date, at prices which wero prohibitive to the United States and English buyers. This means that tho relief which has usually come at this period of tho year, prior to tho arrival of tho New Zealand clip, will not be available, and there is danger that our Home trado may find itself in a very awkward corner during the next two or threo months.

"Meanwhile the depression and the consequent 'bearing' movement of two months ago have now given place to an excited and nervous reaction of a somewhat bullish character. This has been accelerated not merely by the operations referred to, but also by the recent arrival of new orders in considerable bulk for army cloths on account of Russia, Italy, and our own Government.

"In the wool market itself the most remarkable, and withal pleasing, feature has been tho wonderful absorption at advancing prices of the shabby and faulty wools, which at one time were very neglected. Shabby slips and and also carbonising wools have found a ready demand during recent weeks.

"Unfortunately there is yet no indication of relief from the congestion' and arrears at the merino combing establishments; while the difficulties of transit and storago do not show any tendency to diminish."