WELLINGTON NEWS

Hokitika Guardian, 12 February 1927, Page 1

WELLINGTON NEWS

LONDON WOOL SALES

(Special to “Guardian.”)

WELLINGTON. Feb. 9. Tho first of tbo series of London wool sales for the current year, which opened on January 18, was brought to a close on February 2, and throughout the .sales the market was buoyant and tho bidding brisk and animated At no period of the sales was there an indication of weakness, and it is interesting to note that all descriptions of cross-bred wool advanced a half-penny per lb. Prices were equal to those ruling at the January sales ol last ye'.ir, if not a shade better. Compared with the December series cross-bred’s of 40-48’s quality good to super made IGJd against lGd. and low to medium made 14?,d against 13i-d; cross-brods 4t-4G’s low to medium realised 18Jd to 12>d; 40-44’s low to medium 12.U1 against 12d and 30-40’s low to medium Iljd to 143 d. Those -are not fancy prices, but they aro reasonable as tho world’s economic position stands now. So eminent an authority as Air H. Dawson, of Messrs 11. Dawson and Co., declare that crossbred wool is cheap, and its cheapness is making it attractive. The dictates of fashion favour fine wool fabrics, but the impoverished nations of Europe are. unable to follow the fashions, their main requirement is warm woollen clothing nt reasonably cheap prices, and that is what they are getting in cross-bred wool. It also accounts for (bo very steady demand that is being experienced for all grades of cross-bred wool. It, stands to reason that as tho circumstances of those consumers of cross-bred wool improves the effect on this class must be good.

It would lie I utile to look for any sharp advanco in values, and it is hoped that no .such advanco will frike place for it must eventually cause a set-back 'through checking consumption. The wool market is sound, and if cross-bred wool could be pushed tip another half-penny the position from the growers’ point of view would be excellent. From July I. 192 G, lo January 111. 1927, tbo wool sold in New Zealand totalled 207,901 bales. It is difficult to say what is flic average price per bale, for in i.lio earlier sales erufehingti, locks, bellies, pieces and oddments formed the bulk of tho catalogues. Still those inferior wools sold remarkably well, especially crutehings Tbo regular wool sales have seen prices very firm with a slight upward tendency, and perhaps if the value is set down at Cl 7 per bale, this would represent a total of four 'and a half millions sterling, practically the whole of which has passed into the bands of growers. There is no credit in the wool trade, a. fortnight’s grace is all that tho buyer is allowed. Tho greater portion of the money has boon forthcoming for the December and January sales. Finance in the wool trado lias been an anxiott smaller, and Colonel Willey, well known in tbo Bradford wool trade, in a recent speech suggested flit' desirability of establishing a “futures” market for wool, and also to spread tho sales in the primary selling centres to ease tho financial strain.

Some people are under tbo impression that tho buyers who attend the Dominion stales have a definite quantity to buy and that secured their task is ended. That is far from Being the case. The buyers are practically in daily communication with tlieit- principles by cable, and buying instructions arc lihble to be varied at any time. Furthermore it must bo obvious that purchases must bo so arranged that the financial pressure is somewhat even. Prftbably during the three months November, December and Januarv the buyers have H.td to find about £4.000,000 to pay for their purchases. Some of the wool, but very little, can have readied tho manufacturers, and consequently they are paying interest on *;i huge sum. It is doubtful whether, if the quantities offered at the January and February sales were increased that, any more would be sold. buyers would certainly have a big choice, the supply would greatly exceed tilt' demand, and they would be in a position to play with the market. Buying orders would be pooled and the front benches would have the game all to themselves.