WELLINGTON NOTES.

Hokitika Guardian, 27 February 1925, Page 4

WELLINGTON NOTES.

WELLINGTON WOOL SALE

(Special to “Guardi-n”.)

WELLINGTON, February 23.

Wellington's fourth wool sole for the current season lias been held, and although competition was well spread, and the bidding brisk, and at times animated, the unpleasant fact remains I that for the third month in succession prices declined. A bald statement like this does not- really convey much to anybody, but it becomes intelligible alien it is stated that the prices realised on Saturday and .Monday were no better than was realised at the sale held in Wellington on March 13, 1921, nearly twelve months ago, when prices for line wools were at their highest. Comparisons of the prices should prove of interest to everyone, and in the figures cpioted here the official range of prices as fixed hy the brokers are given. Merino wool, BO’s-fil’s and fi-l’s-70’s, average quality sold in March last year at 2(s:{d, while this week prices realised was 2ld to 2fijd, a fall of Vd to 2:Jd. Fine half-breds oil’s to oß’s, average quality last year made 2Gd to

eqipl. this week the 'prices were 24M to 2!id. a drop of 2*d to 3RI. Mediur

lall'-hreds. oil’s to ojl’s. average qualit

realised 27d to 28U1 in March last year, this week the prices were 2(kl to 23Jd, a fall of od to 7d; coarser half--I,reds. 48’s to oil’s, average quality in March last made 21.1 d to 24M1 ; this week the prices ranged from Ibd to

21.L1, a fall of 2d, Id’s to 48’s. averagi

quality, a year ago made 18),d to 21.1 d, this week 18dto 21 d, a drop of Jd to fd ; medium erosshreds, -IT’s to -Id’s,

average quality, in March. 1924, sold at Id id to 20d, this week the prices were Ifi.Ll to ]9}d and the drop was about Id on best lots, coarse erosshreds 40’.s to 44’s. average quality sold at ltijd to 17fjd in March last year, this week the quality realised Iti.Ul to

181(1, here wq note thrtt par to :jd more was obtained. Low erosshreds, 44 sto ID’s, average (piality in March sold at 14Ml to 17d. this week the prices were lo;|d to 171il, a general advance of !,<i to Jd. It will he seen from these comparisons that it is really only lon erosshreds that have shown any im-

provement as compared with last year, hut the other crossbred counts have about held their own. Merino and hallbreil wools arc lower than they were twelve months ago. PI!OBPELTS FOR WOOL. Out of about 24,000 hales ollered at the Wellington sale it is estimated that only about 71% were sold which means a heavy carry-over, and this lias been a feature of all the sales held in February. From this it is evident that wool growers hold the opinion that value will improve later. In view of all the facts this appears to be optimistic and it may be desiiable to bring out seme ol the tact*. That the lowest grade of crossbred wools should show mi improvement in values as compared with n year ago while line wools show a substantial fall have some meaning. The explanation appears to be that the consistent users of the fine wools are economising or making use of substitutes, mid the masses who cannot afford the fine softhandling fabrics made from the fine wools, are buying cheaper fabri.s ma % from crossbred wool, fheie is a git.i. or demand for low grade wools limn for line wools, and therefore the leimer retains its price while the latter ,s receding. Then again the cheaper low grade wools are more easily i nan eed than the high priced fine uoiL. because the money required Lo fmgiven volume of wool is les-. It' is thus possible to account f«- 'jfirmness of coarse and low erosshreds. But what of the future? Will prices go higher? We may discuss tie l'"- J ' a bill tv of prices going higher, I-V it is general!v agreed that wool val i"‘ have passed the peak. There will « I course be Uuctua lions but it is wi.li tip, general (emleucv that we bn.o t" deal.’ Slow will flic m'xt ' 'M> Toe statistical position will be trolted out, and the natural increase in Requirements will be emphasised, mil these assertions must he examined. TUcre is still a considerable quantity of wool to he sold both in Australia mid New Zealand, and it is very :>»> •- ~hle that manufacturers liavc sulheient of the raw material in hand to carry them over the next three or lour months. In May the European and North American clips will be coming into store, and in June and July new clip from Queensland will he reaching the selling centres and m the following mouths new wool will lie coming in very rapidly. SOME ADVERSE FACTORS. Australia has been favoured with a good season, and it is anticipated that the next Commonwealth clip will show an increase- of over 400.000 hales; there, will he a substantial increase also from Now Zealand, and South Africa will also show an increase. South America may show a little improvement. The F uited States clip will he larger than last year, and possibly there may he a little more available from European flocks. There is every prospect of an increased yield of wool. Another adverse factor is the use of substitutes, and artificial silk is playing; an important part, finally, " e

have finance, which will continue to cause trouble. 1 here are thus tluee adverse factors, while the only favourable factors are the natural increase and the prospect that with improved economic conditions Europe may ho able to buy more freely. No one can form anv idea of the invisible supplies such for instance as stocks still in the

possession of growers, stocks in com so

of transit, stocks in manufacturing wool lofts and in process of manufacture and finally the volume of manufactured goods awaiting sale. A' ben

one views the situation honestly and without any bias there does not appear to he any good grounds for believing that values will improve. AYool values have to a certain extent been talked up, hut manufacturers and users generally are now in a better position to judge the situation.