WOOL RETURNS

Wairarapa Times-Age, 31 December 1938, Page 3

WOOL RETURNS

FIRST ROUND OF SALES ABOUT £2,250,000 REALISED. EXCELLENT CLEARANCES MADE. With the completion of the first round of wool sales in New Zealand for the 1938-39 season at Dunedin on December 20, buyers and brokers alike are enjoying a three weeks*’ respite until the series is resumed at Wellington on January 9. So far six sales have been held out of the total of 27 arranged by the New Zealand Wool Committee. The auctions already held will result in a return to the grower of about £2,250,000. While this will be about £1,000,00 less than the cheque in 1936, when payments amounted to £3,280,000, it is considerably in advance of the sum of £1,749,000 received from the first six auctions last season.

Returns for the present year are adversely affected in comparison with previous seasons by the fact that offerings have been limited to 24,000 bales at each centre. Although this does not greatly affect the comparison with last year, when growers held back their supplies at the earlier sales, there was a rush to sell in 1936 when high values were ruling and catalogues were comparatively large.

WILLINGNESS TO MEET MARKET.

One of the most pleasing features of the auctions so far this season is the willingness of growers to meet the market, and at the first six fixtures clearances exceeded 95 per cent, reaching over 99 per cent at Auckland and Napier. The opening Auckland sales in the previous two years were remarkable. Frantic Japanese buying lifted values in 1936 by about 60 per cent, while the opening last year was in direct contrast, for prices dropped by £7 a bale, and only 58 per cent of the catalogue was disposed of. The first auction of the present season was awaited with intense interest, and the smiling faces of growers in the gallery at Auckland in November indicated the gratification at the healthy tone. While the sale was not sensational in any way, prices rose by about 10s a bale on November 1937, a good clearance was made, and prospects for the new season were promising. Then came the Napier fixture, with level at par or slightly firmer than Auckland. Another excellent clearance was made, the percentage representing a record for the district. Bidding was well spread and animated at Wellington. PREFERENCE FOR COARSER GRADES.

The Christchurch sale was approached with more than usual interest, as it is usually the first occasion when sufficient halfbred and Merino wool is offered to establish a market. At the North Island fixtures there had been a noticeable preferece for coarses grades. Buying was strong and animated, and, while values were below the first sale in 1937, when levels ruled which were above the market, no ground was lost from the previous auctions. Values at Timaru remained very firm, and passings were less than 5 per cent. Prices remained firm at Dunedin, but in some cases growers were not inclinedto meet the market.' In spite of this a clearance of 90 per cent was made and competition was well spread. While it is evident that growers will not receive the almost boom values of the 1936-37 season, there is every indication that the final cheque will exceed that of last season. The chief satisfaction lies in the fact that wool is wanted by the majority of the overseas markets and farmers who have already offered their clips have found ready purchasers at prices which must be regarded as fairly satisfactory.