WOOL REPORT.

Gisborne Times, Volume VI, Issue 193, 22 August 1901, Page 1

WOOL REPORT.

THE PRESENT SITUATION'

[From Dalgety’s Review for July.] Such changes in wool values as have occurred since the date of our lastissue are, unfortunately, not in favor of producers. There has been no important alteration in the price level during the month, but close observers of the market admit that the tone is a decidedly less buoyant one than was the case in April, and both in Yorkshire and London a rather easier feeling has lately established itself as is shown by a fractional decline in quotations for merino tops in the former market, and in prices for merino sheepskins at the sales recently held in London. On the whole, however, fine wools have held their position fairly well, whilst crossbreds generally continue to recede. Indeed, so wide is the gap which separates fine and coarse descriptions of wool that it is no longer possible to speak of the wool market in a general way, and it has become necessary to distinguish clearly between the various qualities. For instance, merino tops, i.e., combed wool, of, say, good 60’s quality, are worth Is 7d per lb;

whereas 50’s quality tops, such as would be made from average crossbreds, are worth only Is per lb; and oti’s to 44’s tops, the product of pure coarse wool, are said to be selling freely in Bradford at under 9d per lb. This is certainly a very wide disparity, and of

itself is quite sufficient to show how severely manufacturers of meriDO fabrics are handicapped in competition with makers of coarser materials. But, leaving the partially manufactured article, with which woolgrowers are not very familiar, out of the question altogether, and turning to the raw greasy staple, a perusal of recont London catalogues shows that at the May sales ;iu that centre large quantities of strong fleece from Now

Zealand and elsewhere sold at nc better prices than from -Ud to o.Vd per lb ; and we learn also that some good big lines of Eiver Plato wool havo lately been disposed of in England at as low as 3Jd por lb. Under these circumstances it is not to bo wondered at that merino sorts, although in comparatively short supply, do not exhibit any great amount of buoyancy. It is probably the abundance and cheapness of crossbred wool that is depressing the market all round more than anything else at the present time ; and, Beoing that South America is annually turning out such heavy supplies of these descriptions of the staple, there appears to be no likelihood of any substantial betterment taking place. South American competition in meat inquestionably hits Australian in;erests hard, and pastoralists in these States are now feeling the effects of ;he big accumulation of crossbred vool which growers in the Argentine Republic are endeavouring to push he sale of in England.

At tlie present time, t to, the wisdom of acting with circumspection has been forced upon the trade by the early closing of the list of wool arrivals for the sales which commence in London on July 2nd, and the large quantity which is available for cataloguing. A limit of 350,000 bales new arrivals had been fixed by the London Wool Importers’ Committee, and that quantity was more than reached so early as May 28th ; so that London has not only 330,000 bales (inclusive of 48,000 bales held over from the third series, but exclusive of 79,000 bales sent direct to the manufacturing districts) to offer now, but will have practically three and ahalf months in which to get supplies for the fifth series of sales opening on September 17th. Now, 330,000 bales is a big lot of wool for the trade to face in times when some sections of it are admittedly none too strong financially; and although stocks of merino wool in the manufacturing centres are reported to be only moderate, the magnitude of the quantity now awaiting sale during July in London has naturally created a somewhat general feeling of nervousness and anxiety.

Many authorities who some little time ago were inclined to look for a steady advance in values for merino are now veering round to the opinion that London will do well if existing stocks can be cleared without concessions to buyers. ISlo one was bold enough to predict anything good for coarse wools, and the future of the market for fine descriptions of wool would seem now to hinge very largely upon how those who now have wool in London meet the trade during the next few weeks. If there is arecurrence of the holding-over polioy, -it will be impossible to regard the future outlook with complacency or confidence, because that would almost inevitably lead to very heavy quantities being available for sale in September, and that in turn would as likely as not depress the market just at the very time when the next clip is beginning to come into the local selling centres for realisation. Without any wool being withdrawn from the July auctions, London as already stated, will have all the shipments that may accumulate between May 29th and September 9th to catalogue for the auctions commencing there on September 17th. The receipts during this period are sure to form a sufficiently big total by themselves ; and, that being so, it is to be hoped that London sellers will meet the market in July, whether prices are higher or lower than they were in May. Stacking of large stocks in London, where the whole trade can see them, has almost invariably ended disastrously, and seriously damaged producing interests. Last year’s experiences, which are fresh in the minds of everybody, afforded a striking illustration in this connection, and it is to be trusted that the lesson which many then had instilled into them is not yet forgotten.