LONDON WOOL SALES

Dominion, Volume 13, Issue 74, 20 December 1919, Page 5

LONDON WOOL SALES

MARKED ADVANCE IN MEDIUM CROSSBREDS (From Our Special Correspondent.) London, October 30. The reopeniiyj of tho sales in _ Coleman Street last Monday naturally directs attention to tho wool market. From whatever standpoint they aro looked at, a series of sales, where 10,000 bales of colonial wools nre catalogued daily cannot bo ignored. This is all the more so in view of values ruling to-day, for wool is costing anywhere from .£OO to ;E3O per bale. One's mi»u goes back to December. 1871. when a little Yorkshire clothmaker purchased two bales of washed South Australian merino pieces which enmo to over .£9O per bale. The writer has heard that buyer, speak in somewhat ominous terms at having to pay such a price, ami while he ndmitted that ho was fortunate in just about getting back what tho two bales cost, ho never expected to be able to turn that , wool to a Drofit Tho two bales wero bought from a Bradford stapler, and two moro out of the same lot went to a flannel manufacturer at Idle, Bradford. Theso cost over .£92 per bale, and tho buver often stated that ho never got his own back again. It was in January alio: February of 1872 that wool touched its highest point, though to-day s prices far eclipse tlioso of 1872, and had anyone seen, last April what wool would have risen to in tho open market, it would have been tho easiest thing imaginable to make a fortune. _ Last Monday high prices were again paid for greasy merino combing wools, this notwithstanding American buyers having mostly left for home since the close pi. Inst series. Tho.fact of the matter is. Coleman Street values can bo very well maintained to-day without tho presenco of American buyers, for more French buvers are coming each series, all of which moans increased competition. A Sound Opening. The writer did not expect lo see any further achance in merinos, but brokers as well i-.s buyers agit-eo.' tlmt the sales opened with values on a parity yitli the close of las', series. The week hns produced what wo may call a good average show of topmaking wools, both Bradtord and France finding raw material well suited to their requirements. Up ™ writing nothing very special has been catalogued, although one expects to see boforo many days liave passed good combing merino wool selling 111 t' lo neighbourhood of VOd Alreaoy the top sido of 'GOd. has been paid, these wools being no more than Ol's, of medium length and a clean yield of about 50 pci cent. It is the superior merinos with a •1-inch staple, and a clean yield of 54 to 56 uer cent, for which high prices are forthcoming, and in the meantime averace merinos most suitable for I'reuch combing are selling vcy readily at firm values. Tho best classes nf scoured merinos so far are selling at:anywhere from SOd. to 90d., and theso are not always free. Here, again, carbonising wools abound, and both French and Be - nan buvers are taking up parcels well suited to tl'.eir individual requirements. As a matter of fact, tho homo trade is Ijuyiu'r heavily of wools that must be carbonised, and where they are all going to is a mystery. When one carefully reflects over the position of values lie cannot but feel surprised at where prices stolid, because in manufacturing districts everybody is full of raw material, aim" the same cannot possibly be got through the machines for months to come. Medium Crossbreds Dearer. What has happened is exactly what we expected, namely, that with the resumption of the sales medium crossbreds aro all round 2d per lb. dearer than last series. This'is very significant. I'mo crossbreds, which sold so frooly lfl-st fields are to-day firm, but when wo come to wools of and 'JS's quality• there is distinct evidence of theso selling tor more money. Quality for quality, medium and low crossbreds aro to-day the cheapest article on the market, and altogether out of proportion to merinos. J.he writer could buy in Bradford last week good fit's carded colonial tops at 3s. 9d. and (it's with any character about them cGiild easily bo sold at lis. 6d. lhcio certainly is plenty of room for medium and coarso crossbreds to movo to a high level or merinos to drop sensibly. However, there is no mistaking the ■increased call for medium crossbreds but whether it is dictated by actual orders for these wools, tops and yarns, or a mere speculative buv, timo alone can decide. However, the sales have revealed a very sound situation in regard to crossbreds, and while coarse and fine aro ivrm, medium classes are distinctly dearer, llie same applies to both scoured and sliped crossbreds. The demand here is very (rood, and one witnesses every, day ve, 'y steady competition with no giving way in values whatever. As far as one ean see t'he-ro is every likelihood of the present features being maintained, and one reioices that such a healthy tone characterised the sale room. There has been evidence this week that if tho exchange were only more normal, more .buying would ho done by Italy, while more people are already wanting to buy on Continental account, notwithstanding the unfavourable conditions. However, the auctions have been marked , with verj good results, the prices ruling indicating a very "ound situation.

What's in a Name? One remarkable feature about the mnTket for by-products is that there_ is stall a strong demand for anything of superfine quality. Noils, laps and wastes are all affected in this way, and so. lons as t!m quality is right 'even black botanj noils continuo to sell very well indeed. It has been reported that the price ot these black noils is anywhere from uu. to Tod. per lb., the actual price being decided' by tho character of tho individual'lots, and it is also understood that up to 7Sd. is being quoted for this description. Noils ami other articles ot no more than ordinary character sell only slowly, and there has not recently been much development on home trade account. . ~11... Firms engaged in the export traoe luno recently expressed disio.tisfacl. on with (Ik 1 methods pursued in connection with (lie granting of licenses for line crossbred 'noils. According to the regulations there should 1» iu> difficulty in securing licenses for the expert of but licenses for the export of qualities so named have not been forthcoming, though it has been affirmed that the quality name given was n.uite in harmony w.th best recoguifod standards of the trade. On the oilier hand noils desscribed at GO's have been allowed to bo expo-led, though the actual quality was no finer than tho aforesaid sS's. It is understood, however, that a bettor dispnsit'on has been noticeable to allow these fine qualitios to leave the country, it being expected that licen="s will be actually granted for quantities which have been held up for want of lliem.

Export and Finance. The qucst'on of finance is an important one in all departments of. tho wool textilo industry, price* for every commodity being oil a notoriously high level. There is some difference, however, between internal and asternal trading conditions. When ono firm in this country deals with another also in this country, the two stand on exactly tho ennio basis so far as the .currency is concerned, and the chief points which liavo to bo settled are the market pricc of the goods and their snitpVlity for the purpose for which the buyer intends them to b'e. usedFirms engaged in the export trade aro frequently fimling that in offering in Continental markets, one of the effects of the present ivito of exchange is to make goods which would bo cheap if offered nt homo, dear on tho Continent. Export merchants have found themselves offering scoured wool in competition with similar wool offered by Continental firms, and have had to acknowlcdee that thet own commodity was the dearer article of the two, ami that with prices as they are to-day there v.'.'is little scope lor exieiiding hii'-'ines"--. The same thing aplilies to'yarns, the oninion liav'ng been freely expressed by those who >w doing a large linsiiio'-s' in similar yarns to what, the Continent can produce, that, unlms spinners here e;m evolve a new basis of values thev will lind themselves 'largely left behind.