OUR YORKSHIRE LETTER.

Otago Witness, Issue 4028, 26 May 1931, Page 12

OUR YORKSHIRE LETTER.

UPWARD TENDENCY IN RAW MATERIAL VALUES. (From Our Special Correspondent.) BRADFORD, March 19. Tt is impossible to consider any description of raw material without finding that prices are very much higher than in January. For South American 40-44’s crossbreds clean, c.i.f. Liverpool, is wanted, and for Montevideo 60-64's combing 19d. The New Zealand season commenced with 50's topmaking wool at clean, c.i.f English port, but the quotation last week from Invercargill was 12d. A similar advance is seen in Australian merinos. The lowest prices in Sydney at the end of January were 174 d for warp 64 s and 16jd for average, clean, Bradford, To-day’s quotations are 23d and 22d. Those who operated at the lowest point stand to make a substantial profit, and those who waited in expectation of still lower prices xvill be more or less disappointed. With regard to the London sales, the movement of values has been remarkable, most wool being 15 to 20 per cent, dearer compared xvith the close of the January series. So far the improvement in crossbred prices is the outcome of home trade topmakers buying freely. Evex-yone 'is asking xvhether the present level of values will be maintained, and.xvhether Bradford will be responsible for such a result if it is achieved. Some German support is forthcoming for weft 70’s Continental combing, but the bulk of the buying lias been done by the home trade in both merinos and crossbreds. It is no uncommon thing to see scoured merinos which were xvithdraxvn last series selling at 4d more than was then bid. At the January series half of a New Zealand consignment (Tokomaru) was sold at the following prices in comparison with xvhat has been realised for the other half this series:—

The above prices make a striking contrast and deserve the careful consideration of all xvho are interested in medium crossbreds, for the quality of the xvool mentioned is most 50-52’s. One splendid New Zealand clip offered last xveek xvas A/Akitio. This xvas well grown and of delightfully soft handle. Such wool as this has made the name of New Zealand as a producer of desirable combing xvool. Many other dips’could be named which are equally- attractive, but the first lot of greasy crossbred of the Akitio mark made 10|d. It was 50's quality and xvould give a dean yield of 78 to 79 per cent.. Other lots made 103 d, the quality not being quite so fine. The lambs touched 9<L Besides its character, the classing of the xvool had been very well done. Rukumona greasy half bred exves touched lljcl, and wethex-s and hoggets The quality xvas good 58-60 s, the best lot of halfbreds oflered so far this series. Good fine Queensland scourede have sold remarkably well. A Central Queensland clip (Wellshot) touched 25d, and RM/Ardbrin 23d. Notwithstanding the increased quantity of seoureds now available, distinctly better prices are being realised than in January, and the home trade is the buyer. The interest shown in them is no doubt largely attributable to the clean condition of the xvool and the quality. Some West of England manufacturers apparently must have this description. and Yorkshire firms are competing. There is evidently still a use for these superior lines of scoured merinos. One lot of fatty scoured New Zealand merinos touched 19d, whilst some Geeion" lambs made 193 d. A feature of the cata” logue this series is the big supply of practically all qualities. No matter what class of wool a spinner or manufacturer wants it is obtainable. The slump in prices has resulted in more xvool being sent to Coleman Street. Many clips are now appearing there which xvould not have been seen otherwise, and though there has been a very substantial improvement in values since the bottom point xvas topched xvool is certainly not dear. Front the groxvers’ point of view there is still scope for substantial improvement, and fortunately there is every prospect of this being fully upheld. DOMINANCE OF THE RAW MATERIAL. Some very interesting news has been received this week from Australia about sales held in Melbourne and Sydney. The facts xvill no doubt be knoxvn already to readers, and they have. reason to rejoice that the raw material is going so strong. The reported 10 per cent, advance in Sydney compared with the close of the

previous series and prices bejng 5 to 7} per cent, above the London level at Melbourne indicate keen buying interest, and the cable information has shown .that Japanese and other foreign competition has been largely responsible for the basis of values established. One striking thing is that Japan is buying crossbred wool freely. One private cable has also indicated that under the influence of Japanese competition prices for merinos have been lifted decidedly above a parity with the selling price of tops here. It is exactly in this connection where a feature is introduced which Colonial growing and selling interests can scarcely be expected to appreciate so well as Bradford. As an indication of the effect of this keen buying in Australia on Japanese account it may be mentioned that whilst the best price that could be realised for an average 61’s top last week was 25Ld, several of the big importers with buying interests in Australia are now refusing to talk about a fraction under 26d and for warp tops 27d has been asked. This shows plainly enough how foreign competition is setting the pace in wool. There is also every probability that this pace will have to be followed by our spinners and manufacturers. Some of these are saying that when the wave of foreign buying subsides prices will ease slightly. They also contend that, whilst manufacturers have been largely speculating on their yarn requirements, wholesale and retail piece goods houses are having a disappointing time. The writer can only repeat, however, that at its present price wool is quite reasonable, and users in this country will have to keep in line with others if they intend to “ clothe ” their machinery. EXPORT FIGURES.

The Japanese buying of wool has been freely commented upon since it became so prominent in Australia this season. Estimates have been made —some of them perhaps rather extravagant—of the quantity of wool Japan is now taking annually. Given stable wool production and an increase in Japanese purchases, there is so much less for other countries, and this is a rather disconcerting suggestion for the West Riding of Yorkshire. Figures have been given at various times showing the decrease in exports of tops, yarns, etc., to Japan from the United Kingdom during recent years, and within the past two or three years big decreases can be shown: — „ , January-February

Perhaps the industry in this district would be less concerned about such decreases as the foregoing if on the whole exports were showing expansion. Unfortunately, however, during the first two months of this year our exports of worsted yarn, which totalled 3,639,4001 b, were 2,100,0001 b less than in the corresponding period of 1930; whilst exports of woollen tisues, which totalled 12,273,000 square yards, were 6.300,000 square yards less, and worsted tissues with a total of 6,710,300 square yards were 1,850,000 square yards less. In every instance the decrease this year is much larger by comparison with 1929. All this indicates loss of trade, and the problem industrialists in the West Riding have to solve, if at all possible, is how it is to be replaced.

Description. Jan. 23. Per lb. March 10. Per lb. Greasy— d. . d. A crossbred .. . . 5J ' 84 B crossbred . . . . 5i C crossbred . . . . 51 8 " D crossbred . . 1st crossbred pieces . . 4.} 6.4 1st crossbred lambs . . 6| 83 2nd crossbred lambs . . 44 7J

1929. 1930. 1931. lb. lb. lb. Wool tops 30,100 34,600 9.000 Worsted yarn.. 124,300 42,300 65,100 sq. yds. sq. yds. sq. yds. Woollen tissues 797,800 466,800 409,600 Worsted tissues 323,300 300,800 436,800