ON THE LAND.

Gisborne Times, Volume XXVI, Issue 2136, 11 March 1908, Page 1 (Supplement)

ON THE LAND.

THE LONDON WOOL SALES OPENING OF THE FIRST SERIES. A BETTER START THAN EXPECTED. BOTH MERINOS AND CROSSBREDS FIRM. (From our Special Correspondent.) LONDON.-Jan. 24. Tho first series of Colonial wool sales opened last Tuesday? Coleman Street Wool Exchange being filled to overflowing with an anxious crowd eagerly waiting to know the initial iosnlts. More than usual interest surrounded the opening, duo entirely to tho courso of prices during the interval. Towards tho end of last ycai things in Bradford wore very slumpy, while also Continental futures dropped severely. I don’t think I can do bettor as showing tho general courso of prices than give a table of standard wool commodities .at tho closo of the last scries, at the end of 1907, which was tho lowest point, and at tho opening of tho present series: Dec 10 Dec 30 Jan 21

The experience of the last two to throe months in the wool trade has been very depressing, all due to financial stringency, a high bank rate, ■and partly shaken confidence. However, with the turn of the year and more favorable monetary conditions, a change lor the better has set in, prices have partly advanced, and now the verdict of Coleman Street is awaited to see if things aro sounder than many suppose.

THE QUESTION OF SUPPLIES. The wool trade to-day is largely absorbed in dealing with heavy arrivals of direct imports, and this aspect of the situation will enter largely into tho question of price for the next three months. It is well known that Australia’s last clip was an early one, and up to tho end of last December something like 1,200,000 bales had been shipped from Australasia for tho first six months of the wool year, or an increase of 80,000 bales up to tho end of December, 1908. -This means that the trade is confronted with some heavy weights of wool which v\ill have to he tackled during the next two or three months. Tho bank rate having come down to 4 per cent means considerable help to importers, but they will have need to see arrivals movo off quick to satisfy bank officials. It is well known that tho heads of financial institutions are at present in a very careful and enquiring mood, knowing as they do that upon all imports a heavy loss will have to be faced. Germany seems likely to suffer the most, while many" Bradford houses will also find their financial resources heavily taxed before effectually liquidating their Australian purchases. Regarding supplies, the quantity available for tho 1 current series is larger than for somo timo hack, and tho following tablo is well worth analysing. In tho first column I show the actual gross arrivals for the January series; in the second tho net quantity available; and in tho third what quantity of New Zealand wools— mostly crossbreds —go to make up tho net available bales for sale at tho current' series: —•

*133,000 bales wore carried forward from the December series, 1900, to the January series. 1901. A NEAR SHAVE.

Last Tuesday morning opened dark, dull and grey, a dense fog enveloping everything. It was perilously near a miss, but by 9.30 a.m. the darkness somewhat 'lifted and’ all buyers turned out. It proved to be more or less a ground fog, for when wo were hoisted five and six stories high to where the wool was on show we could see fairly well.

Three catalogues wore put before the trade on the opening day, medium merinos largely predominating. From the number of familiar faces round valuing it was plain to he seen that there would be a full room, and frequently as friend greeted friend an expression of opinion was given as to how things would go. Nobody felt inclined to predict a rise, but few prophesied a fall. Crossbreds were' evidently the dark horse, it being the general opinion that fine wools when of decent character would hold their own. Perhaps Continental buyers were in less form than usual for expressing an opinion, and wisely they refrained from saying much till they saw how things went. Tho wools on show for an opening day were mostly suitable for the home trade, and buyers worked hard and valued well. There was nothing suitable for America with tho exception of a few nice lots from Victoria, and the crossbreds were not of sufficient character to tempt Yankee buyers at all. However, the catalogues were gono through thoroughly, and nothing seemed to have been missed. At 4 p.m. Coleman Street Wool Exchange presented a very animated appearance, every seat being filled. At tho very start competition proved to be keen, bids were given freely, there was nothing of that dilly-dally-ing and hesitancy that characterised the opening at the last series, everybody putting in their full price straight off. It was really a treat to see the fight for straight lots of wool, and everybody remarked that bidding was more animated than at any time in November. This much can be said that more competition and spirit was seen about the room on tho opening night than at any time last series. The home trade led tho van, supported mostly by France. Germany was less activo as could oniy be ex-

Farm and Station.

Icon with avidity 'by Bradford. In a word tho results of tho initial sitting proved to bo better than was expocted, and everybody folt pleased that prices should be made that showed practically no change on last series. The following table shows the alteration in crossbred wools: Fine crossbred par. Medium •• l ,i,r - Coarse .. par to 1 cheaper. Slipe .. Id cheaper. Wednesday and succeeding sales 6aw brought forward a better selection in all qualities, and fully opening values continue to rule.. Tho most pleasing featuro continues to bo good gonoral competition, America buying a few lots of the best merinos and crossbreds, and Germany might bo moro activo. Still there is keen competition, Yorkshire taking the bulk. What is now wanted is a firm finish to dispel the dark clouds that have boon hanging over tho wool world, and to give fabric buyers to see that after all prices are sounder than was generally supposed. Coleman Street does not reflect at all the pessimism of somo quarters, and tho tone and epirit now seen should galvanise into activity all other markets. If men can only bo inspired with confidence then wo have seen the worst. THE OUTLOOK.

Messrs H. Dawson and Co. when speaking on tho outlook say “tho opening of the present series is being awaited with anxious interest in every branch of tho industry, and its verdict as regards values will do much to determine tho policy and settle tho course of business. The iiast interval has boen one of anxiety and uncertainty. Great hesitancy in placing orders has boen tho feature of tlio markets, and t-o-day everybody hopes for tho fixing of a basis of values. Tho acute and world-felt financial crisis has tested tho stability of the industry severely, hut the fine wool branch of tho trade lias suffered to a minimum extent only. Happily, tho money stringency is passing away. Discount is no longer at a prohibitory rat©, having eased in all tlio centres, and further relief may be expected in the near future. Tho American situation is moro hopeful, although there is at the moment a natural reduction of output. The stocks in domestic quarterbred wools aro considerable; but Australasian wools and merino combings generally which are chiefly wanted, are very lightly stocked and in good request. There are indications that U.S.A. will be a steady operator in the London market throughout tho year/specially seeing that their purchases have been comparatively small in the Colonies.

The stocks of merino tops in Germany are also at an extremely low, if not at a “record” level, and there, as elsewhere, despite the financial trouble, tho position in tho industry is much alleviated by the fact that stocks of merinos are light, and that the machinery is close to the supplies. Combing mills in all centres testify to the fact that as quickly as the tops are combed, they are required. It is possible that the year may see a somewhat restricted activity compared with tho great rush of the past two years, but the new clip is so well drawn upon already, and stocks in the mills aro so light, that good stapled merinos occupy a very sound position at tlio present level. The easiness in faulty sorts is a necessary rectification/ which is due to the heavy proportion of noils (now at a low price and slow of sale) produced from these faulty wools. Without any reduction in the price of tops adjustment is necessary to put values right hero. Tho situation in regard to crossbreds is, however, not yet satisfactory, despite tho salutary effect of tho clearances of wools in Liverpool at buyers’ values. Improvement is blocked by the stock of crossbred tops in German and French combing mills, which are dribbling off, as yet, at a very slow rate. It is hoped that tho present sales will put an end to the prevailing uncertainty and lack of confidence. The lower prices now current must help to stimulate demand, and this, with the better ton© in financial circles, and in the merino trade, should assist in the restoration of confidence.”

The bank rate yesterday was further reduced to 4 per cent —a yery satisfactory feature indeed.

1907 1907 190S d. d. d. 70’s Colonial tops 274 27 28 i 64’s >• 264 26 27i 60’s super 26 25 26 66’s 22i 22 224. CO’s 19 18 18J 4G’s 16 * 16 161 40’s 14 124 131 36’s .4 <• 13 11312}

Gross Net Now arrivals. quantity. Zealand. Bales. Bales. Bales. 1908 353,300 187,000 38,000 1907 275,000 155,000 37,000 1906 291,500 165,000 28,000 1905 235,500 105,000 28,000 1901 190,000 137,000 39,000 1903 216,000 111,000 42,000 1902 211,500 193,000 59,000 1901 250,000 *339,000 70,000