PRICE OF FLOUR

Dominion, Volume 9, Issue 2628, 25 November 1915, Page 8

PRICE OF FLOUR

NOT LIKELY TO ADVANCE. Rumours have been current in Wellington to tho effect that flour was likely once moro to advance in price, and in order to ascertain whether such a movement wus probable inquiries were made yesterday among those interested in the trade on the subject. It appears that one possibleground lor tho rumour is the fact that the duty of £1 per ton hoe been rcimposcd on American Hour as from November 1, which gives tho local millers a slight margin in which to raise their prices, without running the risk of serious competition with imported Hour. It is stated that New Zealand importers were led to believe that the duty would not be reimposcd until the end of tho year, and the result of the reimposition of the duty is that some merchants wJio have Canadian shipments during the next few weeks -will bo obliged to sell at a lo6s. But this duty of £1 per ton scarcely warrants the belief that an advance will be made in the price of 'flour. One strong factor against tho upward ■ movement is the glowing account of the wheat prospects in the Commonwealth, and particularly New South Wales, where harvesting is expected to commence within a. week or two. A firm of grain brokers in Melbourne, writing to a Wellington merchant on the Australian wheat says that it is assured that the Government will handle all stocks, paying for them on tho London parity, which iru expected to work out at 4s. to 4s. 6d. per bushel.. Taking wheat at. the minimum of 4s. per bushel, expressed in flour, it means about £9 -Is. per ton' in Australia. To thiß price there must be added the duty, freight, insurance, and the other incidental charges, which would make the price of Australian flour in Wellington £11 10s. per ton, which is exactly the price that Is being paid to-day for New Zealand flour In sacks, f.o.b. southern ports. It i 6 stated that it would be profitable for bakers to import Australian flour on the price basis mentioned above, rather than pay the price demanded to-day for New Zealand Hour, because every sack of Australian and Canadian flour yields four loaves more than a sack of New Zealand flour, which means a. gain of 40 loaves on every ton, egual to an extra 10s., on the basis of 3d. a loaf. The Canadian harvest,' too, has been a bounteous one, and •& cheap freight could be possibly arranged on Canadian wheat as back freight for the steamers that are about to take New Zealand and Australian wool to tho United States. Viewing all the foots there is obviously nothing to justify the rumour that the price of New Zealand flour is to be advanced.