WELLINGTON NEWS

Hokitika Guardian, 24 August 1926, Page 4

WELLINGTON NEWS

THE WOOL MARKET. (Special to “ Guardian.”) WELLINGTON, August 20. The wool season has practically begun for Australia is shearing and the usual auction, sales will begin in Sydney next month. Jt is very difficult to judge the wool market, as every woolbroker knows, and the most that can be done is to note the present conditions in the principal consuming centres, for prices must be regulated by the volume of the demand in relation to supply. Latest advices state that in the top market quotations are being steadily maintained for merinos and line crossbreds. Top-makers who have bought wool in London and Australia are lirrn in their belief el seeing tkcii money back, together with a reasonable profit, and are not inclined to view tlm present slack situation with undue pessimism. r l here is know u to lie n small stock of wool oil the Continent, and while demand in England and most countries runs on line clothing. they are confident of an outlet for the' stocks they are at present holding against lower bids. This attitude is deprecated h.v spinners and manulaeiii re is. who are wishful of getting tops at lower prices, hilt the only thing thev can do for the moment is not to make spcculatives purchases. Topmakers are said to he adamant, and while

they refuse to lower quotations, are sending wool to the Continent for combing purposes because of the cheaper charges. Medium and coarse crossbred tops are not so well placed, because of tbe large supplies of wool, and the poor demand from the Continent for yarn. Prices are irreglar for the limited output, and there is small hope of any improvement being affected. At the London sales last month while merino wools were in good demand, crossbreds were slow, and it is crossbred wool that New Zealand is mainly interested in. The Federation of British Industries in its monthly review says that the continued stoppage of machinery is causing considerable trouble, but that many firms who have supplies oil hand are only running three or four days a week, owing to lack of orders, or disinclination to nuinfncture lor stock. In the hosiery districts orders are very scarce, and only a settlement of the coal strike will bring relief. Reports from abroad do not hold out much prospect of any increased consumption of wool in any direction for a time. In the German wool textile districts conditions arc said to he little changed. Mills are working only a part of tlieir capacity, anly others will shortly close down unless conditions improve. In Italy there lias been a slowing down of production, which is also reflected in the export of wool textiles. In the United States dull conditions prevail and there has been no change in values of raw wool. It is declared in some quarters that there is a strong movement towards the production and sale of good clothing at lower rates, and that an increase in the number of retail establishments which specialise in moderate-priced clothing is a forerunner of this.

MARKETING WOOL. A report on the marketing of wool in England and Wales issued by the British Ministry of Agriculture is of considerable interest, and should be studied by those who yearn for a wool control organisation as providing something heller than the present marketing methods. The report points out that the reputation and technical proficiency of the brokers operating in central wool markets gives Ihe sellers a protection against tbe lottery of the market. One of the difficulties of regulating a central market is a lack of definite iiiforiiiatTon about world’s supplies of wool. The report asserts that the importance of the London wool market as a barometer for lim trade is uudiintiii-shed despite the development of auctions near tiie growing centres and in other important places, such as Antwerp. Dealing with the complaint that buyers form price rings, the report states that there are very few complaints about that matter when sales are a success. What has to be determined is what is meant by the term “ ring.” It may imply that buyers arc unwilling to purchase at more than a given price, and competition mav not go beyond the limit. Alternately if mav mean that buyers are combining to depress prices below their economic level. Growers, it is urged, should remember that if all buyers were equally expert they would all fix n given price for each lot of wool. On the other hand, buyers may contend that even if a ring were possible, it would lie difficult for it to operate, because individual requirements of buyers would make it difficult lor a settlement to he made Hint would give satisfaction to all. The strong defence of the wool grower is said to he the right to withdraw wool from sale for submission at a future auction, should he lie dissatisfied with the bidding.