THE LONDON WOOL MARKET.

Wairarapa Age, Volume XXIX, Issue 8373, 7 March 1907, Page 3

THE LONDON WOOL MARKET.

BRADFORD, January 25. The first series of colonial wool sales of the year opened on the 15th instant before a numerous gathering of. home and foreign buyers, including some American. A good catalogue was put before the room, and an animated competition by all sections took place, with an exceedingly firm tone throughout. Values at once ruled on the high level of the last series for all descriptions of merinos, and occasionally with even]] 5 per cent, advance for the finest grease. Crossbreds, which were mainly of the finer qualities, also maintained the parity of the preceding series, and in some instances put on a 5 per cent, increase. The attendance since the opening has been equally good, and the biddings have progressed with uniform animation, but there has been no quotable advance on the opening values. Our local market for wools has firmed up to some extent since the opening of the London sales. Users are acting with the utmost caution, however, although prices here are fully £d under present London rates. Medium crossbreds are alleged to be somewhat weaker, with no particular reason for such weakness, and certainly the actual transactions don't show any indications of a relapse. Moreover, the proportion of New Zealand produce at the present sales, viz., 37,000 bales out of a total 154,000 bales, does not lend itself to any idea of superabundance. In the yarn de- ' partment, spinners are fully employed, although it would seem as if merchants were holding back orders. Any way, spinners are quite firm in their quotations, and are behind with deliveries in some cases. Any hands which were thrown idle by a recent fire in the town have been at once taken on by neighbouring spinners. The following particulars are taken from Messrs Helmuth Schwartze and Company's annual report on wool for 1906: —"In spite of a further considerable increase in the supply from the colonies, amounting to some bales, values of merino wool have been well maintained, are in- . deed a fraction dearer than at this period last year; while crossbreds have also improved their position and are now on the average 5 per cent, higher. The United States has not assisted in this result to anything like the full limit of its strength, having taken actually 30,000 bales less than last year. All the sounder must be the market which, without material American aid, can maintain so high, a level in the face of largely increased supplies, and again leave

stocks very low at the end of the year. Last year's total supply calculated in clean wool was 3 per cent, above 1895, and was the largest on record. The decrease of 20 per cent, in the production of merino wool is fully made up by an increase of 52 per cent, in crossbreds.- Owing to ' the increase in the receipts of merino | wool during the last two seasons, the ] proportion of crossbreds in the total | supply is now reduced from 52 to 47 i per cent. Prices for merino and fine crossbreds stand from 40 to 50 per cent., coarse and medium crossbreds 1 from 20 to 25 per cent, higher than ' December, 1895. The rise from the last two descriptions, compared with their lowest point in 1901, Amounts to nearly 150 per cent. We shall again have to reckon with an increase from Australia and New Zealand. Estimates have varied very greatly, but probably we shall have to deal with some 150,000 bales more from Australia and New Zealand, and a further increase, say, 30,000 bales from the Cape, or, allowing for some decrease in the River Plate clip, a nett increase of something like the equivalent of 130,000 to 150,000 colonial bales. In considering the prospect of merino in the face of the increase, we cannot forget that prices are now on a very high level, attained in large measures through that scarcity of supplies < which has ceased to be a factor in the -situation. But, considering that fashion has' pronounced very decidedly in favour of merino, that we are entering the new year clear of old stock, and that machinery " both at Home and on the Continent 'is very fully employed, the situation appears sound, and no marked changes need, in our opinion, be looked for. Fluctuations there will naturally be, but we do not anticipate any decided downward movement, and ■ indeed, if the American demand comes into play, ,it is more than probable that values will be firmly main- ' tained."—Abridged from Hawke's ■ Bay Herald.