The Manawatu Herald. Tuesday, July 20, 1909. DALGETY’S ANNUAL WOOL REVIEW.

Manawatu Herald, Volume XXXI, Issue 464, 20 July 1909, Page 2

The Manawatu Herald. Tuesday, July 20, 1909. DALGETY’S ANNUAL WOOL REVIEW.

This Annual Review of the Australasian wool markets for the year ending on 30th June, which has been published by Messrs Dalgety and Co., 1 Ltd., with characteristic promptitude, deals in a comprehensive manner with the wool industry. The remarks under the various headings are very interesting, while the statistical matter has been carefully compiled. Space does not permit of our dealing with the compilation as fully as we should like to do, but all those who are in any way interested in Australasia’s staple product can be recommended to apply to publishers for a copy of the publication, which we understand will be furnished gratis. It is shown by these authorities that the oversea exports show the substantial and unexpected increase of 69,772,153 lb., but it must be borne in mind that the exports for the year have beeu swollen by the carry over of more wool than usual from the preceding statistical year, and the earlier despatch of many Queensland clips this winter* As regards values, these have advanced beyond the hopes ot the most sanguine. Commencing at a level of about 30 per cent, below the opening of the previous year, prices have continually advanced, until at time of going to press fully 25 per cent, of the decline referred to has been recovered.

Much of the clip which was sold before the material advance came, of necessity passed from growers’ hands at comparatively low prices; but those who sold early at least have the satisfaction of knowing that they obtained good competition for their wool, and consequently as high a price' as the trade of the world permitted buyers to pay. They must also remember that those who took their' previous clip from them at a high range of values had lost tremendously on the year’s transactions, whereas during the past twelve months they have done well, and are in good heart for the coming season, anxious to buy wool, and prepared to give a remunerative price for it. All things considered, the year now closed has been a far more prosperous one for growers than they could possibly have anticipated. The 1,657,906 bales which have been sold in Australasian markets averaged 6s rod per bale, and even presuming that the portion of the clip,' which has been sent direct to London for sale, has only made a like dverage, the net gain in wealth to Australasia from wool alone amounted to as compared with for the preceding year, and in 1906-7. As a matter ot fact, the monetary return from the exportable surplus of Australasian • wool for the past year will be considerably greater than the figures quoted, for the simple reason that the proportion marketed in London will net considerably more per bale than that sold in Australasia, because the market has been a rising one and also because the wools sent forward to London for sale contain a large percentage of scoured, and practically no farmers’ wools or odds and ends ot station clips.

After fully considering the present outlook Messrs Dalgety and Company, Limited, say that it seems as difficult as ever to forecast the future of the market. With good supplies ahead i the general run of merino wools may slip back a little, yet looking back oyer a series of years the outlook is distinctly encouraging. Prices seem fairly safe from any violent fluctuations for some time yet, though the cold, wet suimher now being experienced in Great Britain will have a bad effect on light weight goods made of merino wools, and at time of going to press the probability of another big strike in Great Britain is not reassuring. With crossbreds cheaper than Merinos and standing at the average price of the past 16 years, a decrease in the next Argentine clip imminent, and, the probability of such wools gradually being forced into fashion on account of their relative cheapness to fine wools, the position of the coarse, grades of crossbreds seems to be a solid one, and it will be surprising if they do not hold their ground. Any upheaval in finance or trade would, of course, shatter all and every argument adduced ; - bat though history repeats itself in the past, it has not done so at short intervals. Likewise, any change in the present peaceful international relations would, of course, be a disastrous calamity to the wool trade, but it is to be hoped that the great nations of the world may continue to enjoy the pqace which now prevails. Summing up the position, they give it as their opinion that a continuance of high prices during the approaching Australasian selling season will largely depend upop how supplies are handled on this side. • Any delay in the offering, of heavy supplies, such ay might occur through a wet spring pr other J

causes, would greatly help the position. What producers and selling brokers should aim at is to control the offerings in such a manner as to prevent the possibility of any surfeit in supplies, and this can and should be done. The factors in favour of a continuance of high prices for wool during the coming year are stated as follow 1. Moderate stocks in manufacturers hands. 2. Abundance and cheapness of money, and likelihood of a continuance of such conditions for some time. 3. Natural general expansion of the world’s trade after a period, of depression and economy. 4. The knowledge that U.S.A. wants more wool, and is not unwilling to pay high prices for it.

5. Peaceful industrial and international outlook, yet large circulation of money on account of great expenditure on armaments. 6. Growth of the desire all over the world, including Japan, China, and India, for woollen garments in preference to cotton or shoddy ; and t 7. The firmness of the terminal markets.

On the other hand, forces which

they mention may militate against a continuance of present rates are s

1. Present values for merinos are well above the average of recent years. 2. Prospective slight increase in production of merino wool from the chief exporting .countries. 3. Dear foodstuffs ; and 4. Possible resort to adulterants, on account of the relatively high prices for raw wool. / As this well-known institution sold no less than 313,943 bales in Australasia during the past season, in addition to 124,130 bales in London, for the twelve months ending December 31 last, their Annual Review of the wool markets, we have no doubt, will be read with interest