ANNUAL WOOL REVIEW, 1861.

Otago Daily Times, Issue 110, 24 March 1862, Page 6

ANNUAL WOOL REVIEW, 1861.

(From the Home News, Jan. 27.) The year opened with a general want of confidence ; prices of the raw material had a downward tendency, which became more manifest at the close of January, produced partly by the advices from the colonies of a, vevy early clip, aid large shipments made in time for the FebruaryMarch series, also from the extremely quiet tone observable in all the northern m arkets ; the former circumstance induced holders generally to bs more willing sellers, while the latter had its effect on manufacturers who, from the difficulty experienced in quitting their productions satisfactorily, were indifferent buyers except for those descriptions most required, and hence business assumed that "hand to mouth" character gene rally the results of extreme caution and badtra de.

The first sale of the new clip commenced on the 28th of February, the arrivals to that date consisting of 55,9 i« bales, of which, nearly half were Port Phillip. The attendance of buyers, both home aud foreign, was large ; and it, was quite evident that the American crisis, the admitted deficiency of our last year's corn crop, aud the gradual risa in the value of money, had determined buyers not to operate except at a decline on previous rates ; the declension in prices bowever, was not so serious, saoureJ wool excepted, i!S might ,:have been, expected—the average decline on all wools ranged from l£d. to 2^d , while scoured and handwashed at one portion of till; sales receded fully 3.1., and in some instances more. This decline was however partly recovered prior to the close of the sales, to the extent of about Id.

The interval between the February and May sales was marked by extreme duiness in our market, aud the few contracts were not worth noting. The approach of the May sales, fixed to commence on the 9th, led till parties to look with some anxiety to the probable range of prices- that would be established; the continued dulncss in the northern markets and serious aspect in American nlrnirs led all to look for a decline, our own buyers quoting with ranges as to their views of the concession to be madc-r-this latter circumstance led to o larger attendance of buyers than was expected ; it soon became manifest, however, from the firm, and decided tone of the foreign buyers, that they would be large purchasers, and to their active competition may be attributed the satisfactory result of the series, for the average decline could not be quoted at more than l£d., while some of the better well-grown clips from Port Phillip nearly maintained May rates. The purchases for export were computed at 23,000 to 25,000 bales, chiefly from the better, clips from all ports, the operations of our own buyers as usual running upon middle and faulty parcels. Fully ,63,000 bales having bced catalogued at the May series, the interim between those and the July-August sales was not marked by any large operations in our market ; thoss made were of an exceptional character, and no index of the general state of trade. The loss to a great extent of the American market had in some districts caused a good deal of machinery to be only partly employed, and the markets at Leeds and Huddersfield were extremely quiet ; the home trade was moderately good, and the extreme caution manifested by manufacturers in keeping stocks within compass in some measure supported prices, but others who preferred running their machinery were getting heavy in stock, and merchants were indifferent buyers, the anticipations entertained by them that wool would rule lower at the August sales with a large quantity as 90,000 bales, confirmed them in their determination not to make contracts, and hence their purchases were only for such goods as Were wanted to complete orders. Under these combined disadvantages the sales opened with asmaller attendance of buyers, both home and foreign, than for many years past, aud it was at once manifested that the general indisposition to stock except at a considerable decline would cause a drop of ljd to 3d, which received confirmation, although about 5,000 bales were withdrawn entirely from the market, aud about the same quantity bought in and passed. Tnis declension in price, .coupled with the firmness of holders, caused more inquiry; greatly assisted by the glorious weather for securing the harvest, which, as the latter was secured day by day in safety, caussd more firmness, and a gradual but steady recovery in price was established of Id, making a fall on all prime conditional and wengrown"flocks of Id to l^d, and about 2d on fiiulty and inferior sorts.

The harvest having been secured a better feeling prevailed after tiie sales, and many of the wools purchased during the greatest depression of the last sales found ready buyers at a fair profit.

The November series commenced on December 8, and although the attendance of buyers was good, it was evident the continued inactivity in trade had left both dealers and manufacturers with heavy stocks of wool; and at the opening sale a decline was established of fully Id. to 2i1.; in some inferior and wasty parcels even 3d ; and throughout the whole of the sale, notwithstanding the large withdrawals, prices were very uneven and difficult of quotation. Scoured wools of a mo:ity and seedy character were much neglected ; this description generally established on the average the greatest decline. The quantity submitteeffor a flat market was excessive.

Notwithstanding the gradual decline established at each sale throughout the year, the prices of Australian wool to the growers must.be very satisfactory. To importers, on the contrary, t'je losses have iv many instances been very severe. We haye from month to month pointed out the extreme risk in .paying' such high rates on the other side, and a reference to the numbers published in the early part of last year will confirm the correctness of the views then repeatedly advanced, viz., " that the prices to which wool had risen rendered operations extremely uncertain, for there was little margin for an advance even taking the most favorable circumstances, while any political difficulties, or bad harvests, would produce a heavyfall.', Fortunately the country has not experienced the latier, but the American difficulty alone has been sufficient to establish a very heavy decline, aud had other circumstances of a more homely nature arisen, the declension in prices would have b^en considerable and very sqrioiis.

The . announcement; of the Tvent difficulty came too late in the series to have 'any perceptible effect o:i prices, although buyers, acted with less spirit. ■'.'■■ The total quantity of colonial wqol catalogued in 1861 has been 270,299 bales, and from the import list appended at foot it will be seen that the total clip of colonial wool has increased by 30,131 "bales. IMPORT OP COLONIAL WOOL. 1860. ISGI. Sydney arid Queensland'• 46,092 55,229 Victoria . . . 78,186 84,708 Van Diemen's Land . lG,7;tt 16,140 Adelaide . . . 23,554 27,257 Swan iliver . . . 1,992 2,072 New Zealand . . 17,870 23,307 Cape ... . 55,711 61,734 Total . . 240,130 270,567