OATS PRICES

Dominion, Volume 11, Issue 161, 27 March 1918, Page 10

OATS PRICES

IWSIN& MARKET

A. SOUTHERN VIEW

• "/.The following is. (from the Christohurch "Sun" :-^"oats'this season havo been steadily advancing in price, whilst dependent ;lines such as oatsheaf chaff, oatmeal, etc., have followed the upward trend in sympathy. This position is to a great' extent duo to - a tb'prtage in the yields and also to excessive speculation by merchants. There • are indications that the Government is contemplating a Hue of action which may limit prices. "Rumour relating to this attitude of the Government has been persistent, and it would bo idle to ignore it. A Hoard of Trado investigation into the postion has been expected by many in the grain trade, and. possibly would be justified. Such action would be in pursuance of the board's present policy of limiting speculation. As an instance: a week ago it investigated the question", of cocksfoot prices, and merchants are now trading under an understanding not to exceed a certain maximum of values. In view of the fact that a staple article of diet is affected in ijhe case of oats, special significance is attached to inquires said to have,been instituted already into the position by .the Government. What form of action the Board of Trade would take if the Government considered action necessary, .-it is impossible to say. If it gazetted prices there are. many contracts in existence for "which authority lybuld have possibly to be given to break. A precedent for this course exists in/ connection with Government action, taken some time ago with cheese producers. WJiat is more probable is that an intimation would be given to the trade that a certain limit of prices must not bo exceeded.

"An investigation might be fruitful of results, if only to ascertain what the position as regards supply is. Many of those concerned hold that there is an actual shortage, not only from the expected yields, but from the point of .view of a saleable article. Rust and other effects of the weather, played havoc with the crops,, and the trouble is a- widespread one. Usually dependonce can be put on Australian suppliers to repair a deficit, but tho position this season across the <Tasm'tm is much the "same -aY here. Private advices state that' it is expected there that exportation will be stopped. Already there are numerous instances of Australian merchants 'having had to.pay damages here owing to being unable to/fulfil contracts .to deliver,supplies. „ "During tho'season oate -have advanced in price locally from about 2s. 9d'. to 4s. 4d. a bushel in the case of. Algerians. The major price in some cases has even been exceeded; whilst other! varieties, are. dearer still. Oatsheaf chaff is being purchased from the farmer to-day at prices up to £5 7s. 6d. a ton. , Oatmeal, stands at £23 a ton, and a further advance is inevitable in view of the price. of oats. . . . "As stated,-disappointing yields are to » great -extent-responsible for the position, whilst farmers" are l - holding supplies in an endeavour to profit by the rise. But a system of forward dealing, which has distinguished many merchants'-methods this season, has also contributed to what is described as an artificial rate of values. of these contracts extend over the whole year. Owing to the recent rise in the fixed'price of bran, a greater demand has'been caused for chaff, and this fact has further increased value's. The whole position may not as yet warrant a limitation of prices, but there are possibilities affecting, the'consumer in the future which might- repay investigation. It would certainly help if the position as regards the yield was cleared up as to whether there is likely to be a large deficit from actual requirements: ■ The position is more serious as the Southland area in oats 'is much smaller- this year.. For these reasons a section of/the trade "would welcome the inquirv which'they, believe is likely to result."'',-"--- r'"