LONDON WOOL SALES

Dominion, Volume 14, Issue 306, 20 September 1921, Page 8

LONDON WOOL SALES

GERMAN COMPETITION ON INCREASE From Our Special Correspondent. London, August 4. The “Y” series of sales have come to an end. Prices at the finish wero distinctly lower than in June, and the best parcels of greasy merinos fell 10 per cent., while the finest scoureds were mostly withdrawn. Medium merinos including shafty GO'S wools, «®>ewhat appreciated from the opening rates, while faulty and burry pieces met a rtrc.tb demand throughout. Fine crossbreds were mostly 5 per cent, down wh I<> medium and coarse crossbreds often declined 15 per cent., slipc crossbrecls being fully 15 per cent, below tho close of the previous scries. These results, when viewed from a price standpoint cannot but bo regarded ns disappointing, but when we come to tho question ot demand Gorman competition certainly showed very sensible signs of increase, in fact, the outstanding feature of the auction’s was . tho great call on Continental account. This was without doubt the most satisfactory feature from tho sellers’ standpoint, but very tantalising from the viewpoint of Home trade buyers. To find Germany ever )n tho van and prepared to pay bigger prices than either France or tho Homo trade was an item that went down badly with Home trade spinners an*’ manufacturers, but it can bo taken proof of good trade, and certainly shows' how fast Germany is recovering from the stagnation ruling during the war. B.A.W.R.A.’s Aims. From the recent circular published. by the. London directors of tho British Australian Wool Realisation Association, it is clearly to be seen that this big body is to exercise its authority by dictating wool values to tho entire world, and beginning with October nothing will ho conditionally upon the reserves fixed by B.A.W.R.A. This will then cover wool shipped from Australian centres since the beginning of May, and from, October next to April, 1922, all Australian wool will bo sold in London and elsewhere conditionally upon tho reserves fired gy B.A.W.R.A. It ie well worth asking how things stand to-day eompared with the known limits of B.A.W.R.A. Mo have reason for saying that superior merinos arc not realising the limits ot 8.A.W.R.A.. hence practically none were offered at tho recent London sales. It is well known that medium and coarse crossbreds arc sensibly below B.A. W.R.A.’s limits, and it is in wools from 56’s-64’s. chiefly medium fleeces, where B.A.‘W.R.A.’s reserves are being realised A leading member of the trade said to the writer during tho course of the recent auction that medium merinos, the very wools which so largely commanded the support of Continental buyers, were soiling at 10 to 15 per cent, above B.A.W.R.A.’s reserves. Fine crossbreds are about 7| per cent, above those limits. The London directors of this august body cannot touch tho "free.” wools before next October. By that time there will be available another new Australian clip, and many feci that supplies in sight are even more than what the Continental trade can absorb. However, in the meantime it is 1o be hoped, that the Home trade will show some signs of revival, but there certainly will have to l>e a sensible development at the manufacturing end' of tho trade if business is to get on to its feet at all. Fellmongered Wools.

The announcement from Australia that the directors of B.A.W.R.A. in Melbourne have decided net to include fellmongered wools in their scheme, has been received in wool circles with a littlo surprise, and yet we think that the right thing has been done. Fellmongered wools are a. vory different proposition from fleece wools, and if the former were to come under tho jurisdiction of B.A.W.R.A. and its reserves had to, be enforced for these it would certainly lead to more dislocation of trade. It is quite true that Australian felhnongers handle their skins somewhat differently from either British or New Zealand fellmongers, and whereas fellmongered wools from the Dominion come to the London market always in the sliped state, the fellmongered wools in Australia are nearly always marketed in the scoured stale. Even the fellmongered wools from South America aro marketed, as slipcs, just the same as those from New Zealand, and the one method docs not offer any advantage over tho other, so long as tho slipcs are not so dirty as to discourage buyers from looking at them. One is just as good as the other, for every parcel is largely bought on a clean, scoured basis, and Australian scoured fellmongered wools will sell at a market rate no matter what may bo the reserve limits of B.A.W.R.A. Unless the writer is greatly mistaken, these fellmongered scoured wools will realise fully B A.W.R.A.’s reserve, for it has to be a specially sorted and scoured lot of wool to como under the category of “superior.” There are several well-known brands of scoured skin wools, such as Clyde, Gibb, Sandown, Mimosa. S.M.P and CoLtd., Flemington and Esher wools, all well known nt tho London market. These are often bouglit to be delivered so many liales per week or per month, delivery to extend over possibly three months, and for tho sale of these wools to he handicapped by B.A.W.R.A.’s reserves would be a mistake. South African Wools.

Although ut tho recent London sales 160,000 bales were catalogued, only 150<J bales of South African wool wero included. Those that wero disposed of showed an average decline of 10 per cent., although the writer thought that good snow whites sold relatively better than ■’veasy parcels, on account of there 'being n, scarcity of scourcds. There certainly might have been a better show, and it is significant that the bulk of the greasy wools were purchased on Continental account, and ono feels that but for Germany the decline might easily have been another 5 per cent. The market is very bare at present of good Capo wools, which is in favour of the article. The forthcoming clip should be a good one, and next month shearing will begin m good earnest throughout South Africa when the bulk of the wools shorn should bo of 12"months’ growth. These certainly are the wools that aro likely to sell best and be 'wanted most. South African meyinos are selling on a clean scoured basis oi nncticallv the same as Australian meiZof medium character. The Continent is also 'buying liberally of good snow whites, and one perceives a good deal of pre-war conditions about the demand for this class of wool. Tho Continent has always been a liberal buyer of South African snow whites, which are token streight away into the blending room of woollen and flannel manufacturers.