LONDON WOOL SALES

Gisborne Times, Volume XXVI, Issue 2367, 7 December 1908, Page 2

LONDON WOOL SALES

A FIRM FINISH

[Faon Quit Special Coukespondent.j

BRADFORD, Oct, 24, 1908. Since writing last the filth series of sales havo come to a finish, and once more -buyers are away home. No new feature developed as the series terminated, and I cannot do better than give a summary of the proceedings and by quoting from the circulars of one of the selling brokers.' Messrs Charlies Balme and Co. say “of the quantity sold, about 110,000 bales Id n o been taken for export, including some 8,000 bales 'purchased forj shipment to America. Taking into account the somewhat unfavorable business conditions which have existed during tlie past few am;ntlis, the result of the late auctions must on the -whole ho considered satisfactory. In spite of a reduced consumption, the trade has, for the time of year, absorbed an unusuuilly largo quantity of raw material without any very appreciable decline in vulues. As is shown bv the figures already given the quantity available was 251.000 bales Cas against 96,000, for the corresponding series of 1907),’ out of which total some 37,000 bales arc carried forward for disposal during the November-Deccmber sales, thus showing a, further largo diminution in the old stock, which, after reached the cxremely high figure of 120,000 bales in May, was reduced at the July series to 88,000, and now assumes more or less normal]- dimensions. Throughout the sates competition lias been active on the part of Continental and American buyers; the homo trnde, however, has shown considerable reserve and -lias nob purchased quite its usual proportion of the quantities brought forward in the catalogues. Greasy merinos have been in keen •request," especially from the German section of the trade, prices for the better descriptions being slightly dearer, while faulty and inferior sorts, w hich were 5 per cent cheaper to begin with, gradually hardened with the progress of the auctions and (Ultimately ruled closely up to July filial parity. On the other hand, the results made for scoureds, which have b«cTi very plentiful, have proved disappointing and have shown a depreciation ranging from 74 to 10 per cent on last, sales’ -rates.

Among greasy crossbreds, the American demand, -which has been fairly active, has beeir'clirected to a. .rather higher quality than heretofore; fine sorts ruled from pjir to o per cent clearer, while medium grow-tlis sold at about previous quotations. Coarse .grades were from par to o per cent, cheaper during the earlier days of the auctions, hut hardened later on, final values showing but little variation from the July level. Scoureds find slipes declined 5 to 10 per cent, at the outset and the former continued to sell w ith great irregularity throughout the series, the reduction at the close amounting in average to 10 per cent.; .on the other hmd, prices for slipes hardened during the safes, -and ultimately fine sorts ruled on a par with coarse descriptions, and 7* per cent below, July rates. As regards South African wools, greusies, which have been very scarce, have (realised previous values, but heavy conditioned parcels met with a dragging demand at a fall of about

10 per cent. Snow whites and scoured* sold fairly well to begin with, but prices gradually weakened until they were from 74 to 10 per cent down. Trade generally continues dull and prospects somewhat (uncertain. A favorable feature in the situation is tile reduction in the old stock held over from series to series in London, ‘which has had a depressing effect on the industry during the past few months. At the moment there are no signs of improvement in demand; it is to be hoped, however, that as soon as the American election is over and the cotton strike in Lancashire settled, business viiil gradually emergo from the existing depression.”

THE OUTLOOK. Messrs H. Dawson and Co. in speaking about the outlook say “The most satisfactory feature of tho series closing to-day has been the steady clearance of tho catalogued at well maintained rates. Despite the large offerings and gloomy outlook ail wools suitable for tlio worsted trado, and Especially merino qualities, have belied expectations, and defeated all the plans and reckonings of consumers. The unexpected appreciation of merinos in (a time of general dulness of trade and un,satisfactory conditions has been due to the-real machine hunger for raw material. The wideness or tho competition has been remarkable, for the demand has come from every section of the industry, although the strongest support has been by German spinners. This keenness on the part of Germany is largely due to contracts in yarns which had been made since July at low prices, owing to their mistaken confidence in cheaper wools being available, and because of their anxiety to keep machinery employed. It could hardly bp expected that German' competition would be so strong, when tho heavy stocks of tops in tlieir combing mills were considered. These stocks, it appears, belonged vdfy largely to (merchants and second hand holders who have been holding for better prices, and not to consumers. w The latest statistics show r that merino tops have been reduced during September by 600,000 kilos, and stood on September 30th at 4,277,000 kilos, while the stock of crossbred tops was 6,682,000 kilos, showing a decrease of about 260,000 kilos during the month. The London market has stood de>tuched and solitary in its strength. It

has been curiously out of correspondence' -with Bradford .and other consuming centre* fund strangely enough, up to -now London has had very night strengthening effect on the valuers of tops and yarns in Yorkshire. Home business shows but little vitality at present, and sellers seem willing to negotiate new year’s deliveries .-t prices which tire from 5 to 10 per cent- below London parity. Considering tli© -'unmistakable evidences of the •past series,. that stocks of wools suitable for tho worsted industry are light in consumers’ hands, this policy rooms risky. It is certain, ibow-ever, ’that for tops required for immediate •use -a higher (level of values than that which has been assumed for the new rears must obtain.

The -Colonial markets, judging from quotations to hand, are apparently slightly cheaper than London -for ‘merino combing sorts, but arc not yet near to the level of Bradford quotations.

So far .fcs can be gathered, the- horn.-, trade is suffering more acutely than some other centres at the moment. Continental reports are more hopeful, and business has shown signs of improvement; while ill U.S.A. the big worsted mills ain now running about 80 per cent of their machinery and there is a distinct revival of business. Surveying things broadly, therefore, there are hopeful elements in the general outlook. Crossbred wools are at a low price—40’* tops round about lOd are distinctly cheap. Compared with these, merinos <aro relatively not so cheap, but it must bo remembered 1 that-fine worsted -goods are still the popular fabric, and so long as this obtains, ‘merino combings (even with a quiet t rade) will be tlio last to suffer. Scoured wools and clothing sorts generally have already suffered a severe shrinkage in values. The m?> ket closes with the visible (held over” stocks of May and Juibj much reduced. Combing merinos are practically cleared out. Scoureds and crossbred sfiipcs will form the bulk of the wools left in London.” NEW ZEALAND SALES.

Sold by Messrs Willans and Overbury, October 10; Craigieburn; Grsy. 1-1 Ist com H 10d; 21 do, do, do 1 Od; 34 do, do E 2 id ; 29 2nd do 9d ; 17 do, do 9d; 35 ilo, do 94-d; 35 do, do 9d; 19 Ist clo 9(1: 17 do 84d; 27 pcs. Sid ; 23 bellies 0d : 10 Ist com j-bd. 8-Jd ; 5 clo do 8d ; serd. 6 sup. com. ISd ; S Ist do 17d; 17 sup. pcs. 16id; 3 do 12d; 12 locks 13d; 3 sup. 4-bd 14id; 2 Ist do pcs 11.

Kyeburn: Grsy. 19 AW and E9d ; 25 do 8d; 3 A 7Gd; 7 Ist pcs. 8.1(1; 4 2nd do 71 d; 5 bellies Od; 5 A 4-bd H 9id ;37 do, do 9d ;24 do, do S 1 d ; 19 li do W and E Sd; 15 A ersbd do 7id; 18 do, do 7d; 24 Ist 4-bd. pcs 8d; 14 2nd do. do 7:jd; 17 do bellies Old; 2 serd 17d; 3 do pcs 17d ; 7 do i-bred 161 d ; 13 do do 14d ; 4 A do 12d ;2do do llid. _Bof.d by Messrs Charles Balrnc and Co., October 10; —

LL: Grsy 7 A com. 9-id ; 22 do, do 9,1; 3 B do S jd; 3 necks 8d; 3 hollies 0.‘,(! ; 5 A i-bd com 9ld; 10 do. do 9d; 14 do, do Sid ; 0 H do, do 9id ; 5 B do, do 94d ; 21. do, do. 7-id; 13 H do, clo 8-id; o ersbd do o;{d ; 12 do, do 7-id ; 19 cio, do 7d; 18 do, do 7.1(1; 5 do. do Old : 8 2-bcl com. of-d; 10 do bellies withdrawn. . . MARKING TIME.

AM one can say about Bradford is that tilings are marking time; and that is all. Now that Coleman Street Ims closed, nobody need be surprised to see matters relapse into .a very slack way, for all through the recent series of sales Bradford has remained in a. very unsatisfactory condition. It is true that prices have somewhat nominally (hardened, but while quotations here and here may be a farthing more than three weeks ago, yet it amounts to practically nothing, for ■no man need pay more than ho did recently. There is very little actual business doing, the weight turned over being very disappointing indeed. Alerinos remain steady, but that is all, and 22d will still buy plenty of good standard super 00’s tops from makers of prominence. Here and there ta fraction more is asked, but. a •'“firm offer” will get plenty at the prico already named. Spinners are buying a few little lots to keep going their (limited machinery, but they are not the least concerned over tlio future, being as indifferent as c*cr respecting the rccul outcome of tho recent London sales. Before users are going to pay enhanced prices, they are first going to see an increase of business.

There is anything but a confident feeling over tho future, and there is complete indifference to anticipate wants. If there, is. not some improvement at the yarn and piece end, even to-day’s values (reasonable as they are, will not be maintained, for however, significant the buying on German account of the recent London sales, nobody believes that the pace can bo maintained in the Colonies when big weights of wool have to be lifted weekly. Crossbreds are exceedingly slack, notwithstanding a little call for w-00l on export account. It is still quite easy to buy 40’s at 10(1, but they will cost moro out of wool just bought in London. Some profess to have moro cufidonce even in crossbreds than merino’s, and no doubt there is some justification for their attitude. How'ever cheap and reasonable the raw material may he, still there is no trade, and that is the crux of the whole question. The amount of forward business already transacted is ia mere bagatelle to 'what w T e have seen, there being not the (least desire on tho part of either seller or buyer to consider'fiext year’s business. Mohair is very quiet, and precious little indeed is being turned over. Most mohair spinners are running full time, but there is difficulty in accepting the .offers which exporters are at present disposed to make.