WELLINGTON NEWS

Hokitika Guardian, 26 January 1926, Page 4

WELLINGTON NEWS

CROSSBRED WOOL

(Special to “ Guardian.”) ■WELLINGTON, January 22. li one way accept the glowing accounts about wool sales one would be forced to believe that the prices are ascending or at least that the market has stabilised. It seems to be the fashion iii respect to such reports to indulge in a little exaggeration and to make the position appear better than it really is. Three sales have been held in Napier and the wool offered there may be regarded as typical New Zealand crossbred wool. Accepting the official range of prices as being ivuthoritivo and taking lire average quality of each grade of crossbred wool it will be found that prices have steadily receded and that the market has not stabilised. Thus fine crossbreds JG-43’s at the November sale realised 18.',d to 15,1, the average or middle price being 11Id, at tbe December sale the middle price was 1 I’d and it was the same at the January sale. -Medium crossbreds 44.J(i’s made ]3;;d, middle price at the December sale there was a drop to 12d, and at the January sale, the average was still 12(1; coarse crossbreds 4 0-44’s made 14-Jd at the November sale, which was much better than was obtained for either fine or medium crossbreds, which was apparently due to the keen demand on Continental account for such wools. At tbe December sale when the Continental demand had eased the average price fell to 10;,'cl, a drop ol 3;}d on the previous sale, and at the January sale there was a further decline to 10;',d. Low crossbreds 36-40’s made 12Jd at the November sale, at the December sale the price fell to lljd and af the January sale to 10)d. These figures give a different view of the situation. Taking the above figures as the basis then all crossbred fleece wool, of the qualities sold at Napier averaged 13fjd in November and in January the average was about llld, a drop of 2d per lb equal to about ,£o per bale. The wool market has not

stabilised and cannot stabilise until the money market steadies. The Continental operators must be finding finance a very difficult matter. Apart from this there is no doubt that the advent of artificial wool is being used to dull the market. THE LONDON WOOL SALES. Quite a number of people including prominent wool growers expected to see wool values show an improvement at the London sales. Instead ol values ascending merino wools show a drop of

Id per ib while crossbreds exhibit no change. The wool market has not yet found a steady basis and the reason is that the buyers, and particularly the Continental buyers are lacking in financial stability. Furthermore the world’s money markets arc uncertain. Money is difficult to obtain in London and those who desire to borrow must offer tempting rates or go without the money. When the Continental firms are able to secure ample credit they are ready to buy wool, because they need the staple. It is not entirely a question of supply and demand with respect to wool. The demand exists and there is an adequate supply of the raw material to meet these demands, hut those who want the wool arc delicient in purchasing' power, and that is a hurdle that cannot be overcome. When the Continental demand slackens .Bradford comes in and buys cheaply, which of course is the proper thing for Bradford to do. American buyers have been very conservative, and their operations tills year have scarcely made any difference to the market. No doubt a certain amount of uncertainty attaches to tbe new fibre, and while that uncertainty exists wool men are likely to act with caution. The fact remains that the wool market has not yet reached the point of stability, and perhaps will not reach that level this season. All that growers can hope for is that prices will not go lower.