The Wairarapa Daily. FRIDAY, MARCH 1,1889. The Wool Market.

Wairarapa Daily Times, Volume X, Issue 3142, 1 March 1889, Page 2

The Wairarapa Daily. FRIDAY, MARCH 1,1889. The Wool Market.

In reviewing the wool market last year we drew attention to the relatively strong position it theu held, and ventured to assert that the probabilities were in favor of prices then ruling being maintained for the year 1888. Our forecast has been substantially justified by the result, and, though there have been fluctuations in the market during the period in question, and crossbreds, especially those of the lower grades, have somewhat depreciated, tho average price of colonial wools taken all round, was very nearly as high for 1888 as for the previous year—the difference being calculated at about 8s a bale or something like 1 per cent, Still there is no doubt that the course of

the London market during the past year has been somewhat disappointing. At one time heavy failures in Yorkshire, had a depressing effect upon Home buyers, and the doubt that so long existed as to the continuance of the present import duties in the United States materially affected the' competition from America.. As we pointed out last year's statistics tended' to show that the supply was not doing more than keeping pace with the demand, and that production was not increasing bo vapidly as was generally supposed, We showed that in 1886-7 there was a distinct check, arrivals in London from the Colonies, being actually ! smaller in 1887 than in 1886, while at the samo time there was a, large deficiency in the South American yield. The importations from Australia during last year have, however, considerably increased, the total number of bales being 1,246,000 against 1,110,000 in 1887, and 1,189,000 in 1888. The production of River Plate and Uruguay wools has also sensibly increased, although it is probably still less than it was some years ago. On the other band, j production iu the United States appears to he declining. Still, on the whole, there was a much larger quantity of wool thrown on the market in 1888

than in 1887, and jt is prpbablo that there will be a still larger surplus to deal with in 1889. The recent drought in Australia, will, of course, only affect next season's export/ The question then arise? -tietliet' the larger quantity available <>- • '-.Wrijr the current.year is for sale au._■; • * fm likely to he absorbeu ~. '♦-a. reduction in values taking pw. Befomng. to the. statistics for 1888, which have „been received by last mail from London, we find that 142,000 bales were sold in 1888' at public auction in excess of the number sold in 1887, while the quantity held over in. 1887 for disposal during the present year was actually smaller than the balance brought .forward from 1887. These figures, taken in conj unction with the absence of any abnormal speculative demand on the' one hand, or of any marlsed: full ih :

prices: oilthe, pthei't. seein.to show tbaVtbe: increased-; Bupply only keeping pace wtivan'increasing, demand. 'Wlija'tlierramilar: conditions mil'obtain'this -year remains to be seen, but there.appears to be -little reason for anticipating any immediate reduction in prices, on the ground of over supply. The leading London wool brolters take», hopeful view of the position, the general opinion: being; that prices will have an upward, father : :tl|an 'a'': downward tendency during, the current yoar. So. far 'kb the first series of sales recently concluded is concerned, cable advices show that their anticipations have'been to a'certain extent realized. In the absence of extraneous causes of disturbance we may therefore look forward, with some degree of confidence to a fairly steady market. •.".-..■"