MARKETS DEPRESSED

Evening Star, Issue 22443, 14 September 1936, Page 9

MARKETS DEPRESSED

INFLUENCE OF SPANISH WAR BUTTER rmCES COLLAPSE BOTTOM HOT YET TOUCHED Press Association—By Telegraph—Copyright LONDON, September 12. The Spanish civil war is creating serious difficulties for British importers and merchants. Shipments of Spanish grapes are indefinitely held up, and it is uncertain whether the usual November supplies of Seville oranges will arrive, as the fighting and lack of attention to the trees have damaged the crop. It is also feared that the Christmas trade in dried frtiits will he seriously hit, consequently Australian varieties are in increasingly good demand. The position of the firms operating the copper and iron pyrites mines in Spain is serious. AH the British concessions are in the areas occupied by the insurgents, who insist on receiving full value in foreign currency for cargoes exported, while the British Government requires that the value be again paid on arrival in Britain. The proceeds are entered in the AngloSpanish trading account.

In so far as it has increased the difficulties of the French Government, resulting in a renewed attack on the franc, the Spanish situation has had * depressing influence on stock markets, which have passed a lifeless week. Outbursts at the Nuremberg Conference have caused general uneasiness, and in view of this combination of influences it is not surprising that the advance in industrials 'has halted. ( Oils 'and gold shares are quiet. BUTTER. v There has been an unexpected collapse in butter, and Tooley street gloomily inclines to the belief that the market has not yet touched bottom. Operators are definitely nervous, especially as they recall that prices went to pieces in October, 1935. One of the few props to the market has been the prospect of an American inquiry, owing to the drought affecting production thCre, but so far only a few odd shipments have materialised. Continental varieties are also depressed, though some dealers are hopeful of a slight improvement when buyers regain confidence, but none go so far as to predict a recovery to any marked extent. CHEESE. Cheese is affected by the weakness in butter, but the position statistically is sound. WOOL. Wool buyers find a difficulty in assessing the course of values at the London sales. They are impressed by the small quantities offering, which emphasises that stocks are very much lower than they have been at this time of year for a long time. The extent of the Continental demand is uncer. tain. Some feel that the recent movements of the franc make France an important influence. Italy may possibly operate. Responsible traders anticipate that sales will not open at a lower level than the values now ruling in Australia.