LONDON WOOL SALES.

Gisborne Times, Volume XXVI, Issue 2282, 29 August 1908, Page 1

LONDON WOOL SALES.

OPENING OF^| THE FOURTH BOTH MERINOS AND crossbreds ADVANCE (From Our Special Correspondent.)

LONDON, July 17. Thero are sonio things in lifo winch nro always a pleasure to bo connected with, and to bo m actual contact witli wool is always a real joy 1° ,l ho writer. To obey the command got readv for London” needs no second repeating, and all the more so when light, bright, warm weather is heio. I was ono .among the crowd who left Yorkshire last. Monday to ho m readiness for the opening ot tho JuJj sales, and a jolly lot of buyers they all were. It was plain to bo soon tint a different spirit animated tho majority, and that all were prepared to bliv' if wool came at all reasonable. ' AYliilo many, no doubt, were smarting under the severe losses, still the bulk of the dear imports are now out of the way, and with much lighter stocks and ir clearer issue, a tnir!v confident note was hoard as wo discussed the pros and cons of the situation. Buyers began to talk wool as of old, and this D, always a good: sign ..thaL they -tire- wanting to buy. THE QUESTION OE SUPPLIES. Tho question of supplies is to-day commanding a good deal of attention due to the largo carry over from tho last series. Interested parties hnve condemned tho action of tlioso responsible in London ior dealing with supplies, but the carry-over has «n----qui stionably made fo r the good of the oitirt- trade, and importers need not bo alarmed at. having resolved .to a"ai' carry forward 50,000_ bales. '[Tie quantity available is 271,500 bales, this being the largest weight for a July scries for many years back, This is entirely duo to the last Australian clip moving less rapidly into the hands of manufacturers than for some yearn back, and tho trade seems to have forgotten tliis important fact that in the aggregate thero is no larger quantity to liandlo tlian last year. 1 Invo maintained all along that directly confidence was restored there would'soon be a return to more normal conditions, and there is now every prospect of things assuming a moro cheerful phase. Tlie following table shows the net available quantity of wool at tho July series during recent years, and we have purposely given the quantity of New Zealands which go to make up the bulk: - JULY SERIES.

Notwithstanding 50,000 bales which are not to be offered together with tho quantity catalogued, the trade - is not confronted with excessive supplies, for stocks in users’ bands are below normal. 7 Regular readers of this issue will be fully conversant with tho course of things during the vacation, prices in Bradford and elsewhere slightly hardening. A fair good business has been done in both wool and tops, particularly the former, consequently the trade came together last Tuesday in far better spirits than at any previous series this year.

A GOOD START. Last Tuesday saw Coleman (Street Wool Exchange crowded to its utmost capacity, a big crowd waiting anxiously to know the opening results. The catalogues were somewhat better than usual for an opening day, both merinos and crossbreds being fairly well represented. Thero were no American wools submitted, the whole, of the offerings being only suitable for the Home and Continental trades. From the very start biddings were, freely given, and competition was keen, all sections of the trade taking part. If- anything, the 'Home trade led the van, the wool perhaps being more suitable for that quarter" than anywhere else. Bradford did most of the buying, though Franco helped nicely in the merino section. Germany was less active, evidently waiting to sec a better selection. When compared with the close of the last series the following changes toook place: Good merinos, grey, £ higher; average merinos, grsy., 3 higher; faulty merinos, grsy., in sellers favo».; good merinos, scoured, 3 to Id higher; fine x-bred, grsy, Id to Id higher; medium x-bred, grsy, id higher; coarse x-breds, grsy., Jd to 3d higher; slipes x-bred, grsy., par to 3 higher; •lambs x-breds, grsy., in sellers favor; Cape grsy., par to Jd higher; Capo snow white, unchanged. The opening results were just about what were generally expected though some looked for a 10 per cent advance in merinos. This I never considered was likely, trade in manufacturing districts not warranting such a jump. A 5 per cent, rise is much more likely to last than if it was more, and if we can sec a gradually improving market as the series advance, then, it will do much good to the entire industry. Everybody appeared satisfied that the opening was a sound one; and buyers felt better pleased with the good all round competition than if prices had jumped materially. Since the opening tho succeeding sales have passed off very well, and with a much improved selection the full opening advance has been well maintained. Everything is selling well, and if the present largo stocks can bo moved off at to-day’s rates, it will pave the way for the incoming new clip from Australia and elsowhere. THE OUTLOOK.

Messrs H. Dawson and Co , in speaking about tho outlook, say: “Tho market opened much more cheerfully than for several series past. Trade reports frpin the consuming centres are not yet very bright, but thero is no doubt about an improved tone. This is not difficult- to explain. The half year is past with its numerous stock takings, and there is not only an absence,of failures, but reports from most centres indicate that the stocks of clear wool have been largely cleared oft into consumption. Consequently, the trade feels 'more prepared and disposed to meet the' supplies than for months past. Franco and America appear to be ready for larger operations in good merino combings, and the latter in lower grade crossbreds also. The homo trade is vory lightly stocked, in fact some of the topinakers are reported to be oversold, but the consumption is by no means large at the moment, and the advanced prices arc not encouraged by spinners and manufacturers. Germany seems to be the least hungry. Business is dull in that country, and the

stocks of tops in the combing mills romnin at a comparatively high level, amounting on Juno 30th to Tt,935,000 kilos, of which about 0,000,000 kilos are merinos. Tho strong f'oaturo of tho situation is the fact that consumers on tho whole nro lightly . stocked, and a broad competition is therefore assured; and to this, rather than to Minproved trade, tho advance reported to-d ly is chiolly duo. Cheap money and tho prospects ot a good harvest are helpful factors at the moment, and it is to bo hoped that the\ generally improved conditions mav in duo course affect benofieinlly business at the 111 limfaeturtjjg end of Hie industry, which is some-' what quiet. , , , , The quantity likolv to ho hold ovoi from tho 270,000 halos available, h not yet determinable. 801110 oil, ooo bales' will not bo offered, but this ‘hold over” quantity is more likely to bo augmented than otherwise. The nows from Australasia ns to the now clip differ so widely in the various districts that it is impossible as yet to got woll grounded estimates'as to tho production for next season. Some districts have suffered so severely from drought that plainly tho early hopes of a substantial increase will- have to bo modified, if not. altogether abandoned. BRADFORD’S RESPONSE TO LONDON. London’s verdict lias been anxiously awaited throughout Yovkshiro consuming centres, and the opening results just about coincide with general expectations. Many in Bradford seemed to think tint higher prices were not warranted, and that London should go no dearer than at the closo of last series. Wo could never see the force of that argument so long as values for super CO’s tops have risen an all round IJd per ,Ib. during the vacation. This certainly leu some to suppose that the improvement could not possibly be loss than 5 per cent both 111 merinos and crossbreds, and now Coleman Street once moro is higher than AVorstedopolis. Since wo last wroto there has been some decent weights turned over both of wool and tops, and many topmakers have again gone to London in an over sold condition. This means that they will have to buy, and buy freely. There is on all bands a fairly good enquiry for wool, and users have not lately quibbled when offered good lines'of both combing and clothing wools. Prices are all dearer, topmakers demanding moro money. Generally' speaking a super 60’s top is in the market at 23d to 23$d,< and 40’s at 10 Jd to lid, according to the character of the combing. Thero is not now that tendency to undervalue the strength of the raw- material aiul to talk things down that there was. anyone having trade finding in wool a very reasonable article of commerce. There is as yet no marked improvement among spinners, who still complain bitterly at the absence of business. Short, time is very prevalent, and there is no pressure of particulars in either merinos or crossbreds. Prices have mostly been advanced Icl per lb., all due to a self protective movement, but it has brought out 110 weight of business, manufacturers refusing point-blank t 0 ho forced into buying. The situation generally is slightly-bet-ter, and LOll don opening, resultsshould produce real good. It only needs’fabric buyers to see that they can gain nothing by . waiting for them to place more orders for coatings, serges, and similar “bread and butter” fabrics. Bradford has taken opening results in a very philosophical sort of way, hut it lias firmed up those topmakers who failed to see much chance of wool being dearer. In other departments there i« no change, everybody now waiting to sec if London.can keep up the opening.

Net New available. Zealand. 1908 271,500 127,500 1907 166,000 96,000 1906 110,500 55,000 1905 119,000 68,400 1904 ' 130,000 67,000 1903 160,000 89,100 1902 217,000 110,400 1901 326,000 ' 100,700 1900 283,000 85,500