LONDON WOOL REPORT.

Southland Times, Issue 1601, 5 July 1872, Page 2

LONDON WOOL REPORT.

We take the following from the circular of the New Zealand Loan and Mercantile Agency Co., Limited, dated May- 2nd : — The result of the first evening's sale, although well attended by buyers from all quarters, showed that in order to effect sales, a discount on the .February-March rates — more especially for greasy descriptions of medium character — would have to be accepted. About 1500 bales were on that day bought in, at prices beyond those which buyers felt disposed to give. Great caution has been the chief characteristic of their subsequent dealings, and while throughout the course of the present series there have been fluctuations both in demand and price, conclusive evidence has been afforded, with regard to the home trade, that, although bare of stocks, they do not feel justified in returning to the high level of the opening sales of this year, especially for those kinds which were the% unduly enhanced in value. The fall in the price of home-grown wool has likewise recently ; caused half-bred Colonial descriptions to recede, and these do not now commaud the rates current a fortnight ago. As already indicated, " greasy" kinds have suffered most, especially the lower qualities, their yield in scouring having been overestimated by buyers when paying JFebruaryMarch quotations. Up to yesterday, the following quantities have been brought to the hammer : — New South Wales and Queenaland, 21,193 bales ; Victoria, 44,319 ? bales ; South Australia, 15,762 bales ; lasmania, 2113 bales ; Kew Zealand,- 10,893 bales ; Swan

River, 1754 bales ; Cape, 9852 bales ; total, 105,886 bales — of which about 9000 bales in all were withdrawn. The decline established at the commencement of the series, amounting on all descriptions, save Cape produce, to an average of Id per lb as compared with the closing rates of FebruaryMarch, has during their progress become increasingly marked, and may now be quoted at from 2£d to 3d per lb. This reduction applying, as already indicated, more especially to the lower and unwashed descriptions, makes the fall therein, expressed in percentage, proportionately heavier, j In searching for the reasons why buyers should have declined to operate during the present series unless at a considerable discount on previous rates, we think they may be found in the fact that, as mentioned by anticipation in our last circular, there has been but little competition exhibited by French operators ; while the home trade, when not absolutely compelled to purchase, with the knowledge that the succeeding series of June-July will probably comprise some 200,000 bales, continue to operate, as already pointed out, with extreme caution. While the imports to date, as compared with those of last year, show an excess, by reason of the - present clip having been shipped earlier than the one preceding, it is now matter of fact that the production of the year 1871-2 directed to this market will show but little if any increase on that of 1870-1. With this feature in view, it cannot be supposed that during the remaining series of the year lower prices will continue to rule, although they may be subject to fluctuations in value.