YORKSHIRE LETTER

Dominion, Volume 13, Issue 257, 24 July 1920, Page 10

YORKSHIRE LETTER

POPULARITY OF MERINOS ASSURED (From Our Special Correspondent.) Bradford, May 13. Ono must not forget that wool values to-day are high, and although, it Trill be to some Australian growers a disappointment that prices Lave eaaed anywhere from 5 to 20 per cent., according to the description of the raw material, yet evon those values are sensibly higher than growers have been accustomed to, while so far as users are concerned, the standard of values is vastly higher than was ever known in pre-war times. Today's prices far eclipse the boom period of 1899 and 1907, and nobedy nwil bo surprised at the check which has occurred. Tor twolve months Ihora has been a steady upward movement with only a partial setback last December, but to-day wo have been carried buck to a lower point than was then touched. Evorybcdy wants to know if iho downward tendency is to 'be further accentuated, or whether sufficient buying power on the part of tho Continent win sustain values in view of a somewhat more favourable exchange. There are

those who confidently believe that merinos would not have suffered as they have if the French exchange had not mado such a sensational advance, and when the value of the frano fell unexpectedly ohout 25 to M> per cent'., nothing else could transpire but that values would be affected to .almost a corresponding extent during a course of London sales." Changes Seen. There is no need to go over the last few days of the auctions, winch finished last Saturday. No changta took placo of any outstanding moment. Iho lollowing shows the changes compared witli tho clcse of the previous auctions (m each, case the extent of tho falL per lbis given):— Australasian Wool. —Greasy menno, superior, 3d. per lb. cheaper, average to good fid., poor rendition 6d., inferior locks and pieces 2d.; scoured, superior Bd., average to good 10d., inferior 12d., faulty locks and pieces, Gd.; greasy merino, lambs, superior 3d., medium 3d., 111ferior 2d.; greasy crossbred, fine superior 4d., fine ordinary Gd., medium superior 3d., medium ordinary 4d., coarse, superior 2d., coarse, ordinary 3d.; scoured crossbred, fine Bd., medium and coarso 6d,; filipe, crossbred, fine lambs 2d.; medium -la., coarse Gd,, faulty classes ad. South African.—Snow white, super, 6il. per lb. cheaper, medium 7d., inferior 7d.j greasy combing, light 3d.» heavy 2d.: greasy clothing, light 2d., heavy 2d.

Can a Surplus of Merinos be Expected? The outstanding of tbe auctions was the little progress made in n downward direction in regard to super warp merino wools. These declined at tho outside 5 per cent. Every day witnessed over 80a. paid for greasy merinos, and for special lots from Tasmania and West Victoria over 90d, was paid on several Surely this is not without some significance to Australian pastoralists, and clearly indicates that when the wool is rieM, good prices are still forthcoming. Has not tho time arrived in the history of Australia when an effort sliould be mado .to produce good warp merino wool? Surely tho lesson is obvious to those whose business it is to t-h« ..J U ,' n

grow the raw material, and it is patent to anyone attending a scries of safes in what direction buyers' interests lie. W# have heard this last fortnight a great deal about educating public taste lor medium and low crossbreds. It is all right, and a good thins would be accomplished if there was a greater consumption of iS'e und below, but the writer ventures the opinion that really good warp merinos of M's to 7fl's quality will remain in the saddle and never be out of fashion. Of course, wools of the West Victorian character are limited, and per haps other parts of tbe Commonwealth do not favour the production of such- a staple, where quality and length aro two dominating features, but the point of the writer is that every effort slionld ba made to produce a lemrthv warp merino of no lower quality than M's. •' Nobody need ever dream of the market being over supplied with this class of staple; that is an impossibility, for once get the wholo of the Continent back to the use of merino wool as obtained in pre-war days, and exceedingly good prices will prevail for this class of material. Wo are not going to see 12d. to 15d. as tho ruling market price for merino wool as it was in pre-war days, and even if a comparative slump comes, prices will never touch that low level again. Hence there is to-day every encouragement for wool groweru tho wide world over to produce something of a warp character, for to-day it is length /of staple that is wanted more than ever. Even French buyers who have Schlutnberger combs, frankly admit that (ops showine lengtli of staple are to-day feltching in English markets better prices than when they aro short, and ft niorino staple of three to four inches should bo tho goal of every grower.

Conditions in Manufacturing Areas. ' Thoro is no doubt that things are distinctly quieter in manufacturing areas, and tho tendency is to mark time. All descriptions of tops havo suffered a sharp set-back in values, but the decline is tho most pronounced among little topmakers, probably thoso firms with limited capital, and who havo started business since the war. Everything . has gono in their favour up to the present, but rather than bo faced with holding when a slump comes along, they have been induced to take less than they otherwise would have done.' Henco the market must be called a little on the weak side. It is difficult 'to sny what is tho value of a good merino top. They have been bought ns low as 12s. (id., and at tho ramo time biff firms havo been quoting 13s. 6d,, and indifferent sellers at that. Everything depend? upon tho position of the holder. Crossbred*, too, aro easier. However, there is no fe,ir of any serious set-back, and a more favourable exchange is leading many to entertain confident views regarding' the future. All realise that if the value of the Belgian and French franc improves, renewed buying on a ,big scale on Continental account will follow. Crossbrcds to-day are.cheap, and anyone in a position to utilise these can obtain some very good wool and lops at most reasonable values. Imports and Exports. According to tho Board of Trade returns, our imports of wool in April amount to 202,871 bales, compared with 218,318 bales in March. Our imports in January and February were loss, hence the imports to-day aro by no means excessive. There aro those who believe that the supply of good combing irerjnos is not foing to he more than tho t-ado can easily absorb,_ and there enmot be any really, big weights of the best parcels, judging by the free way that new clip wools aro arriving. The following table shops the imports, re-exports, and tho quantity of foreign and colonial wool retained in this country during the first four months of the past pijht years. Dalgetv's figure of 3301b. is 'nknn as the equivalent weight of an Australian bale:

Jan. ■ Imports. Tto-oxports. Itptaincd. Apr. Bales. Bales. Bales. 1020 ... 811.SU 83,807 778,1.17 1919...- 74,8,088 26.22R 721,802 1318 ... 633,283 23,502 (iOO.TSl 1917 ... 8(14,724 27,7M . B36.IM0 1916 ... 932,114 68,175 ' 863,939 1915 ... 1,473,849 72,488 1,401,301 1914 ...1,251,536 528,593' 722,9:18 1913 ... 1,410,036 365,2lt7 1,044,629