HOME MARKETS

Evening Star, Issue 21743, 11 June 1934, Page 9

HOME MARKETS

GOLD SHARES ACTIVE NO IMPROVEMENT IN WOOL BUTTER CONTINUES FIRM Press Association —By Telegraph—Copyright LONDON, June 9. (Received June 11, at 9 a.m.) Dull conditions have prevailed on the Stock Exchange recently, with some decline in prices in most sections. One exception is South African gold mining shares, which have been active on the rise in the price of gold and the expectation that a majority of companies will he able materially to increase their dividend distributions. The gilt-edged market has been depressed, British funds all showing" declines. Australian stocks are also slightly lower. An indication of the state of tho market is afforded by the latest loan issue for Southern Rhodesia of £2,75,0,000 3i per cent. 1955-65, at 971. Contrary to recent experiences, the list of cash subscriptions remained open for the full time, and it is expected that tho underwriters will be saddled with a considerable portion erf the loan. WOOL. The nmol trade shows no improvement, conditions if anything tending to become worse. This applies to all European countries except Germany, where mill activity is apparently well maintained. According to the ‘ Economist’s ’ Bradford correspondent, this is due to tho fact that, while the import embargo in Germany is creating a shortage of supplies and higher values there, it is demoralising confidence, restraining business, and depressing prices in the other wool-consuming centres Bradford business houses, normally engaged in a large German trade, state thdt the prospect of the ban being lifted at the end of the present period is uncertain. Tho German mills undoubtedly would welcome a removal of tho restrictions, hut in view of the foreign exchange difficulties of that country becoming more acute prospects of an early resumption of German wool buying are somewhat remote. Judging from present indications, it appears as though Germany would make an entry into the world’s wool markets gradually through tho issue of special buying permits. These are already being issued to certain firms that are threatened with a stoppage through a shortage of raw wool, tops, and yarns, but the quantities allowed are not large. WHEAT., Argentina has broken the agreement made last summer whereby she was given permission to export 110,000,000 bushels of wheat between August 1,1933, and August 1, 1934, her total shipments to June being 114,980,000 bushels. Argentine wheat exporters apparently arc confident that their Government would not prohibit shipments, although the quota limit had been exceeded, for during May nearly 180 vessels were chartered to load grain cargoes to Europe. This is 70 per cent, in excess of the charterings for May, 1933. FRUIT MARKET. Although arrivals of Australian and New Zealand apples in the past week exceeded 500,000 boxes, the market is fairly sustained, and as forthcoming supplies are on a somewhat smaller scale importers are hopeful that there will be no serious decline in values. Much, however, depends on tho supplies of Continental soft fruits, which appear likely to be fairly heavy and may prove serious competitors with apples. Fortunately the Home strawberry crop is expected to be light, owing to the lack of rain, and should not affect the position greatly. Pears continue to make very good prices, the quality and condition of the "fruit generally being entirely satisfactory. A special parcel of Victorian pears, precooled and carried in a special hold in the Otira, turned out exceptionally fine. BUTTER. With the, consumptive demand well maintained, the butter market continues firm. Prices are about Is to 2s higher than a fortnight ago, and the outlook appears good, as the weather, both here and on the Continent, remains dry. ■ Denmark has now apparently reached the maximum production of her exports, which are mostly coming here, as German purchases are small. Great efforts have been made to stabilise Danish prices. According to tho newspapers a fund of £2,000,000 has been established, half being contributed by co-operative organisations and half by the butter contingency fund. The object is to .relieve the market iu unusually critical times, as any surplus is likely to influence the ordinary run of business. The surplus will be placed iu cold storage and disposed of on the home market at tho most favourable moment. The manner of disposal lias not yet been decided, but it is understood that tho Government favours the increased use of butter by public institutions. Possibly operations under the scheme will be on a very moderate scale, but the existence of the fund is likely to have tho desired effect in stopping market fluctuations.