, 1921-09-01
WOOL MARKET LETTER
lBy ]. A, HILL

The rise in the price of fine staple,
which the Boston dealers thought
they could see right ahead, has so
far failed to arrive. In fact the price
is, if anything. a shade lower than
it has been since the middle OF last
month. Fine wool in Boston is
scarce and in strong hands; so the
dealers set the stage or a rise. But
mills sent their buyers into the
middle west. In Chicago they found
substantial stocks of fine staple that
could be bought for the old prices.
In Columbus, Ohio, and other centers
where pooled wool had accumulated,
they found plenty OF fine voc that
was for sale at the price levels OF
May and June. The squeeze which
the Boston dealers had planned did
not take place and so the old game
of playing the pools against the
dealers is on. The dealers. who can
hardly be expected to feel very
friendly toward pools probably smile
a cynical smile when they see wool
from last years clip whose owners
consistently refused to sell at prices
fully 10 cents higher than those of
today being turned loose as just the
right time to prevent a rise In prices;
especially when they are beginning
to see that, II this hoped for rise is
delayed two or three months, 1t may
never come at all.
Australian sales continue to go
we'll with the advanced prices Of last
week sustained. Americans are buy
ing moderately Of fine combing
woods on the basis of about so cents
clean landed in Boston for woods
comparable to our fine staple. When
the permanent tariff goes into effect.
If it carries only its promised duty
of % cents a pound, clean basis on
wool, this Australian wool can be
laid down in Boston, with the duty
paid, for SIS cents a clean pound
the average price OF choice fine
staple wool in that market today. So
II the mills can play the dealers and
the pools against each other until
after the permanent tariff law Is en-
acted, the, promised big squeeze in
fine woods may never come. The
American buying in Australia at
prices which under the promised
tariff would be just about on par !
with the current market in Boston
means that the fluctuation Of the 4
Australian markets are of the utmost |
Importance as a basis on which to
predict the prices of fine wool in this
country. Australian prices are to |
some degree artificial. All the wool |
OF thai commonwealth is held in one
big pool, the managers of which limit
the amount offered for sale each
month to what they estimate can be
sold without forcing prices below the
minimum limits which they have
established. 1t Is to be expected, |
then, hat prices will be sustained; |
but, IL the wool is not being sold at
least as fast as the sheep are grow
ing it, this whole control scheme will
go to smash sooner or later.
During July and August wool at
the Australian auctions is being sold \
at the rate Of about lao 900 bales a
month or say loo 900 bales a year.
a little over 100000 bales, but in |
the last year before the war some
800, 900 bales were sold in London. !
So 1t would appear that, II between
now and the first Of next July the |
present rate of selling at the home
auctions is continued and as much
wool is sold in London as in the year |
before the war. then an amount equal
to one years clip will have been ,sold,}
and the carry-over of Australian |
wool will to all intents and purposes
be no more nor no less than it was
July l this year. The old wool car
ried over this ear is, according to
the managers of the Australian pool,
1,489,487 bales. Surely there ia moth
ing in these figures to suggest a
wool famine. Those interested in the
wool market will do we'll to keep
track of the number of bales sold
each month in Australia and in Lon
don. -n>