THE WOOL TRADE.

King Country Chronicle, Volume II, Issue 88, 26 June 1908, Page 3

THE WOOL TRADE.

It is a long lane that has no turning. After months of depression, throughout which the market has been a steadily declining one. it is satisfactory to know that the downward course of values has at last been checked. Recently, advices of an encouraging nature have been received as to the course of the London sales ; not only lias the " rot " been stopped, but the weakness reported at the opening has quite disappeared. Competition is widespread and keen, and under such influences prices have been brought fully into line with March closing rates ; indeed, the better style of medium and coarse crossbreds at 5 per cent, dearer. It is cabled that America is a keen purchaser in these qualities, which is fortunate, seeing that they are in such full supply. Whether it is that trade prospects are brighter with our American friends, or that the tempting!}'' low prices which these descriptions were realising, have brought about some speculative buying, matters not. The result is the same, the market is being cleared —at an advance of 20 per cent, on opening rates —of the very article which was anticipated would be a drug. Whatever losses American operators may have made during the past nine months, it is certain only a small proportion of them can be debited to medium and coarse crossbred account. "Their purchases of these during the above period,' as far as the colonial orXondon market is concerned, are a mere bagatelle, consequently'they ; are now starting with a "clean sheet," and it may be that it is to this branch of the trade they look to make up some of their losses.

. In sympathy with crossbreds, merinos, have also firmed up to the extent of io per cent., but private advices are to the effect that the selection of these, as far as greasies are concerned, is not a good one. Scoureds on the other hand, are well represented. As the Continental section still shows great reserve, April rates, which merinos are now bringing, must be considered satisfactory. Advices from all Continental centres are still of a more or less pessimistic nature, and until a more hopeful view of the position is taken by this section, backed with practical support to the market, no great rise can be looked for in merinos.

According to the cable giving particulars of the offerings and withdrawals, a great change has come over the scene. A fortnight ago, out of some 44,000 bales offered, io.ooo were withdrawn; whereas, it is now cabled that 107,000,000 bales in all have been offered, whilst 39,000 have been sold. This is very satisfactory, and is ample proof, if any were necessary, that there is a sound demand, and it certainly looks as if a level has been found at which it is possible to work with some degree of confidence, which for months past could not be done.