LONDON WOOL SALES.

Gisborne Times, Volume XXVI, Issue 2150, 27 March 1908, Page 1

LONDON WOOL SALES.

FINAL RESULTS AND THE AFTERMATH. (From Our (Special Correspondent.) BRADFORD. Fob. I*l. Tho ill'sfc series of colonial wool sales aro now a. tiling ol tlio past, my last, letter being forwarded during tho course of the final sitting. A. week ago I gavo a brief summary of the results of tho series, and as far as ono can see there is little need to again sum up tho situation. (food merinos throughout fared a long way the best, these making full November prices, with an occasional-}d advanc'd for good ; ehal'ty lots. Wasty, seedy, burry parcels gradually fell away until the decline amounted from id to Id. There is this season such a surfeit "of these wools that it is somewhat difficult to see how they can improve, and all the moro so when the woollen trade is unmistakably showing signs of reduced activity. Crossbreds have be.en the dark 'horse, and' excepting'dkfr' lino, halfbrods, prices showed a penny fall. It- is hero that New Zealand pastoralists will feel it the most, for tho trado is decidedly quieter, and demand less pronounced for medium and ooarso qualities. I don’t think I can do better as showing the great' change that has come over crossbreds than ask the reader’s attention to tho following table, where the current prices at tho corresponding series a year ago are contrasted with tlioso just made: — Closing Quotations Current Ist SorTrices. ies, 1907 d. d. d. d. Grease crossbred, line 101-15}.. • 12-16 Grease crossbred, medium 8 -11 ... 11-13} Grease crossbred, coarse 7 - 9}... 10-13} Grease crossbred, pcs. and locks .... 3}- G}... G- 9 Grease crossbred, lambs 7-11}.., 9-12} Scoured crossbred, lino 151-22}... 17-21 Scoured crossbred, medium, and coarse B}-15}... 11-17} Slipo crossbred, fine 9 -15 ...11}-18 Slipo crossbred, medium 8 -12 ... 11-15} Slipo crossbred, coarso 7}-10}...10}-13} SOME ASTOUNDING DIFFERENCES.

One of tho most .astounding facts in connection with tho wool situation is the great change which has come over crossbreds. For years tho fleeces of tho mutton breeds have been at a premium, thanks very much to some big military demands, and fashions favoring tweeds. Today both aro moro or less modified, anil tho former aro reduced to the minimum. A general contraction in woollen and worsted manufacturing districts both in Yorkshire, on tho Continent, and much slackness in America, has all had tho effect of causing users to reduce their purchases, tho result being a very sensible 'reduction in actual prices paid for crossbred wools. I have taken the trouble to look at well-known -representative wools sold in Loudon at the .recent series, and what the selfsame clips made at tho corresponding series a. year ago. Tho following are tho top prices made for well-known marks: —

Jan. Jan. Price. Price. 1907. 1908. d. d. Motuotaria 17} ... 14} Crook and Bundle 16} ... 14} Leeficld 15 ... 14} iStonyhurst 15} ... 14} W.D 16} ... 14 Dumgreo 15 ... 14 Brookdalo 15} ... 13} Haldon 15} ... 14 Lmlstone 16} ... 13 Poukawa 15} ... 13 Humming Bee 15 ... 13 Tauroa. , 16 ... 13 Crissoge ' 15} ... 13 LH in diamond 15 ... 12}'Hiku 16 ... 12} Bangor 15 ... 12} 01-rig 14} ... 12} A. Bell over Pialco.... 11} 9 Tenakoe 16 ... 11 JNW in diamond 14} ... 11}

BROKERS’ OPINIONS. I don’t think I can do better than give the different opinions of selling brokers. Messrs. Charles Balme anil Co. say that “in- view of the course of events during tho past three months, current prices for merinos must be considered satisfactory. The consumption of this class of wool is -large, and at Present quite equal to the supply, so that, although values in London have been slightly -above those -ruling in the manufacturing centres, there seems to-be no grounds for anticipating any further reduction. As regards crossbreds, the outlook is somewhat obscure. The Bradford export trade in.tops aiyl yarns has recently been very quiet, and until there is somo recovery in tho volume of business with Germany, winch is tho principal outlet, it seems improbable that there will ho any material improvement in prices.” Messrs. 'Buxton, Ronald, and- Co. say that “in view of tho generally adverse trade conditions o n tho Continent the results of these sales, as far as merino wools aro concerned, must bo considered satisfactory. The long-continued spell of dear money during the closing period of last year had told its tale, especially in Germany, and imparted a feeling of uncertainty and distrust as to tho future. 'But as soon as the sales opened all doubts were dispelled, -and it was ,at once seen that the strong statistical position or the article was going to assert itself, and the subsequent course of events boro this out in no uncertain manner. The industry in this country meanwhile is ■healthily engaged, and nulls are generally moderately well employed. As foreshadowed in our circular at tlio close of the preceding series, consumers havo realised the fact that tlio recent basis of values was on much too generous a scale, and appear to have deckled to get prices down. Dear money here again lent its aid, and, encouraged by this, speculatois have -lately been freely offering tops on a considerably reduced .scale, to that even now ruling on tlio London market. This in its turn has made users go very slowly, -and only but for immediate wants. The crux of the position is that new orders at present are absent, and are badly wanted to take the place of old contracts running out.* Further, tho export trade from Bradford to Germany is still m a bad way, but alien'd this.recover, its influence would be felt_at once. THE OUTLOOK.

Messrs. H. Dawson and Go., in speaking of the outlook, say:— Oiu industry lias met with stormy weather during the past three months,

and, although tho galo is over, thero remain evidences of damage and loss. Naturally people havo been occupied in protecting their interests, and reducing their risks, rather than pushing business or undertaking new vontures. Tho recovery of confidence is a slow process, and thero is still a perplexing and unsettled market. Considerable disparity now exists in tho relative prices of different qualities, and ,in some of the coarser wools thero is yet no tested basis of values, so far as tops and .yarns are concerned. Tlio only thing which tho present sales have clearly shown is that, despite .slackness and lack _of confidence in*, many manufacturing centres, there is -a remarkably steady and persistent demand for merino combings, no much so that values have hardened oven in tho teeth of a general depression. Consequently, it becomes impossible to think pessimistically of merinosj notwithstanding a somewhat lessened consumption .in the worsted trade. The general opinion appears to be one of comparative security, when tho whole account is checked. There aro new and increasing demands for merinos from tho East; the year’s clip was never more urgently awaited than in October last; and - the absorption is already well ahead of most years. There will also he a decrease in tho year’s supply of Australian merinos, estimated at 80,000 to 100,000 hales. These aro factors to set against any decreased consumption caused by recent financial troubles, and tho former comparatively high values which have, of course, cased down materially since September. In crossbreds a moro difficult and intricate situation has to ho faced, and already values have suffered a considerable shrinkage in medium and common grades. Tlio next interval will determine if France, Germany, and U.S.A. will come to tho aid of Yorkshire in tho consumption of these wools, now that prices h-avo declined to a reasonable level. There are signs of increased interest and activity with regard to the stocks in Roubaix and Germany, and during tlie past few dayfe some large transactions in old stocks aro .reported at low rates. This is the first welcome stop towards betterness. Meanwhile tlio low prices will do a good deal to creato new demand. Some holders havo a good oninion of tho future, and would not "offer their crossbreds at the series just closed. They take the view that most of the adverse influences which have affected the market are passing away, and tJiat a wenera-1 improvement may occur. GENERAL WEAKNESS.

Nothing but stagnation -anil pronounced depression can be reported about the Bradford market. London’s close found things actually worse than when tho recent series of auctions began, and what is going to be the unshot of it all it is hard to say. Bradford to-day seems to be completely under tho spell of outside factors, which is causing very low prices to bo accepted; and winch has the effect of dimming the outlook. It is common knowledge that a big weight of 40’s prepared tops havo been sold forward for summer delivery at a shilling per lb., and to-day as much as l}d- per lb difference obtains in the quotations for 40 s. What all this cheap selling means it is dimcult to say, but no doubt users have their eye upon the next March senes of sales. Unless there is a vast alteration, prices cannot help but be lower, and it is to be sincerely . hoped that both Germany and America mil bo in better form for buying than recently. Certain it is that Bradford is not going to give material support to crossbred *alues unless thero is a sensible addition to yarn orders, and at present now business as- entirely absent. The fact of the matter a, trade is decidedly more quiet than for a long time back, and everybody is fearful of what probably will never • happen. To my mind, both prices and trade are being talked down to about the vanishing point, and when the worst is known, then it lull l>e seen that things are not as bad as .some have tried to make out. It is very difficult indeed making an .impression upon market values '''hen things are so quiet, everybody seenin<dy being inclined to hold off until a more settled policy shows where tho raw material stajius. Merinos aro nothing like -as weak as crossbreds, but at tlio same tune less money lias been accepted in several oases both for present and future delivery. Plenty quote super 60 s tops }d down, and I am ceitain 20,d would buy a good- combing—a price that was not ruling three weeks ago. n : there were -any stocks of tops, piic es would have fallen liko crossbreds, but combers are making deliverie with all possible speed, and so Lu Botany spinners are keeping all their frames going. There is not that feai felt over the future of crossbreds that there is in merinos. Mohan is as slack as over, and little is doing. Tho best classes of Turkey hold their own but all Cape sorts, esn.cially firsts, -are sagging, duo entirely to a vcvrv limited idem and. _ ri Sold by Messrs. Thomas and Cook, Feb! Grea«2 haWbrcd 9Ad, 8 .super crossbred 9}d, LI uo. cm. tOd 22 do. do. 9}cl, o 7 do. do. -d, 13 do ’B}d, 5 do. 73d, 2 do. 9d, 8 do. pieces 6}d, 3S. do. do /d, 10 do bcl lies 63d. These were nice bright 40 s wools, very sound, shafty, but felt tho full force of the decline. fco.d Greasy: 4 half-bred 13d, 11 1. i2}d 16 do. 12d Y fo.dl}d, 9 do. lid, 11 crossbred lOd, U do. 9}d, 26 do. 9d, 4 first do. -t. 1° crossbred 9d, 5 do. 9d, 4 Linco n 8 d, 6 first crossbred pieces i|d, 28 do do. do. 74d, 4 scoured fine do. 9., iL. o do. do 9}d, 4 do. do. locks Sail. This is J Very good clip, well prepared for market, sound, bright, sliafty, and very well grown.