ANNUAL WOOL REVIEW, 1862.

Hawke's Bay Times, Volume II, Issue 95, 6 March 1863, Page 3

ANNUAL WOOL REVIEW, 1862.

[From the Home Hews, Dec. 29 ] Contrary to usual custom we this year publish our annual review, of the market for the December mail. Now that the November-Dccember sales close so late in the year, business in our markets may be considered closed until the new year, it is well tnerefore that our summary should reach Australia as early as passible. The opening of the year was not marked by any particular features in our market, the heavy sales at the close of 1861 having stocked all parties with plenty of the raw material; but little demand exhisted for anything, the few contracts made boing chiefly for small orders to complete sorts most wanted prices, however, were well maintained. The dealers, although anxious to sell, held firmly for a profit, while manufacturers who expected a lage supply for February, would only pay for such descriptions as were actualy required, particularly as the quantity of old wool held over and remaining on the market for the February-March sales was estimated at 10,000 bales.

So large a stock held by importers and dealers here had the effect'of relieving the Northern markets, and in consequence consumers were very bare of stock, the paucity of which was soon manifested by their eager competition at the Fcb-ruary-Marcli sales; for, although the accounts both from our home and foreign manufacturing districts were discouraging, the competition for all sorts was keen and animated throughout, Port Philip of the new’ clip ranging from Id. to lid. higher, all scoured sorts and Cape a shade dearer, other descriptions about the average of IS'or ember, except old wools, which were slightly in favour of buyers.

During the interval between these and the May sales a very influential deputation of the buyers waited upon the merchants’ committee and the brokers for the purpose of arranging ns far as practicable that the sales should be shortened, to do which it was proposed that not less than 3000 bales should be offered in one day, and that if possible, 3500 bales should be the average. To do this it was necessary that the bales in each lot should be considerably increased ; and although the proposal was well entertained by most, there were seme large importers who feared that many of the smaller manufacturers would be unable to

bid at such heavy lots, and their competition lost an important consideration, for the biddings of the small clothiers from Pudsey, Ac., are of great importance. Fortunately,the working of the new arrangement has been satisfactory to nearly all and the trade have welcomed an alteration which while it limits she extended time, has concentrated biddings and rendered great fluctuations as less likely to occur the dealers, who are the great supporters of the sales, and indeed the chief buyers, look forward to the hope that next year 3000 bales will be daily catalogued, so that, if possible, the great sales of May and July may be sold each in one month, giving a larger interval between these and the autumn sales for the clearance of their stocks.

The large sales announced for May drew gether a good room of both home and foreign buyers, whose operations were continued throughout the sales with great spirit and confidence, particularly for the better descriptions of Port Philip coming, and for which the Bradford spinners were eager bidders to the close, the purchases for that market being very large ; contrary to their usual practice the Bradford buyers took largely of all the finer clips ranging from 2s. 2d. to 2s. 6d. The average decline established on the rates current in March may be thus quoted:— ' ‘ Port Philip. Sydney. * . Good to fine ... Id. tol|d. Id! to 2d. •'-'Fair to good ... „ 2 „ 2J XJfdny. to aver- • age and faulty ~ 2 „ 3 2J „ 3J Xew Zealand Van Diemen’s Land, and other descriptions about March rates to a shade in favour of buyers. It was considered that the result of so large a sale at the prices paid was very satisfactory, and although importers made little on their purchases growers would have good cause of gratulation that with the prospect of 100,000 bales to be offered in the J uly-August series the raw material found a good and animated demand at highly remunerative rates. The continued strife in America, and, in consequence, high prices for cotton, would lead, it was generally expected to a larger demand for goods made entirely from wool, but although this was true in part, it was not forgotten that a class of light goods made from cotton warps (and which only find a large sale at a price), had almost ceased to be produced ; added to this was the destitution and absence of employment in Lancashire, which withdrew from our market a large class of consumers; the loss also to a very great extent of American demand caused the cloth markets to rule quiet : and although some large orders from France and a fair home demand existed, there was no tendency to an advance in woolen goods as some had anticipated.

T lie combined circumstances stated caused a quiet market here, and although wools were held firmly it was scarcely expected that the August sales would run quite so high. The arrivals in time for July-August sales, which commenced on the 31st j uly, comprised the unprecedented quantity of 105,000 bales, the importance of which was manifested by the very large attendance of both home and foreign buyers, whose biddings and general animation caused the sales to open tully equal to the average rates of ilay, which w ere well maintained for the first leu days, alter which the market became somewhat less animated, the competition of foreign buyers not equalling expectations, and a slight declension in price took place, particularly in faulty and interior sorts, which were in excessive supply—those from Sydney being very faulty and moaty. The dealers who had operated sparingly bought more freely and prices gradually hardened ; the easy state of the money market, and successful housing of the crops, imparted a more cheering tone to the room, and all seemed anxious to stock heavily in anticipation of the year's requirements ■at prices which, with the present prices of cloth, Ayould prove remunerative.

It is remarkable that no signs of speculation should have arisen—nor, indeed, did it seem thought of—until the close of the sale when a strong speculative demand sprung up (chiefly during the last two days), and forced prices up fully Id. to lad., an o]>eration which was continued for some weeks after the close, all wools being readily taken by speculators at lid. to 2£d. advance. The dealers readily sold their stocks at this rise, and some manufacturers preferred selling their purchases to taking them home. It is generally estimated that fully 10,000 bales changed owners —chiefly from second—but part first bans. Those in the trade who looked for a reason in this movement could find none, or any data by which such operations could be carried to a profit, hence nearly all (except holders not connected with the trade) met the market freely, and were too happy to make a certain and satisfactory profit. Immediately speculative orders were filled the market assumed a very quiet tone, and prices became a shade easier, but with little business, all preferring to wait the result of the Novembersales. The sales were fixed to commence on the 13th, November, but a donee fog prevailing that day they did not commence till (he 11th. The attendance of buyers, both home and foreign, was as large ns we have ever seen, and the biddings for the first two even intro were exceedingly animated, the late advance being fully maintained. I his satisfactory state of affairs was owing entirely to foreign demand, and partial support given by one speculator. It soon became evident that the home buyers would not pay the advance. Ij> consequence, the market gradually gave way, anq onfhe whole sale the average rates of July- : August .wore only maintained, except for some descriptions, then most depressed, such as faulty medium scoured, and locks, pieces, Ac., which sold at about Id. ]id. more. Considerable irregularity in price was manifest eaoli day, and the pressure on the market of se-cond-hand wools told very much against them, and the losses must in many cases have been very serious. Some which had been well selected sold to cover cost and charges, but others on which tiro profits had been sold left an average loss of lid. to 2d. Towards the close there was rather mere animation and s much better feeling among the manufacturers, who were liberal buyers dun ing the last week of the series.

The arrivals for the November-December sales were announced as 57,000 bales, but the quantity catalogued numbered 75,000 bales, the difference being 18,000 bales, chiefly speuclators wooL Had the speculative movement noticed not have taken place, it is generally believed that our market would have been higher, but the timidity caused by their operations had filled many maimfacturers, who would have been large 1 buyers at this series, and their competition and that of the dealers would have led to better prices, besides the confidence always produced by the information that the actual sales are not likely to exceed the arrivals advertised. Looking to the average prices paid during the year lor colonial wools, and the unprecedented quantity of 323,557 bales having been catalogued, it will be matter of gratulation to the trade that the continued increase finds a ready market at market remunerative rates; and should the American difficulty be settled prior to our next year s import being submitted, there is very reason for assuming that rates then will be fully equal to those established this year, and the annual increase of colonial wool is really required for consumption ; many fabrics are now made in part or wholly from wool, which hitherto have been produced from cotton only. The demand, too, for 1 ranee, both of the raw and manufactured material, continues to increase, and it behoves our growers to keep their flocks well up in breed and condition, which they can do, as evidenced by the beautiful samples shown at the Great Exhibition, and which, having now passed the hammer, have brought for the superior sorts prices ranging from 3s. to 4s. sd. We may mention that the ballots of scoured Port Philip could not have been better, and were much admired by the trade.