COMMERCIAL.

Globe, Volume I, Issue 84, 7 September 1874, Page 2

COMMERCIAL.

THE SAN FEANCISCO GKAIN MAKKET. We are indebted to Messrs Koyso, Stead and Go for a copy of Messrs Freidlander’a Annual Grain Circular, dated San Francisco, July Ist, from which we make the following extracts;— Of the exports of the past year, 13,607 centals of wheat, 392,028 centals of barley, 0870 centals of oats, and 34,063 barrels of flour were sent by rail to States and Territories east of the Sierra A evades, which have not heretofore been collated in the weekly reports. Wheat—Tlie business of the past year has boon marked by a number of strange features. In the lirst place, the crop was very much under-estimated. The planting season of 1572 73 was all that could bo desired, and a very large acreage was gotten into wheat; but during the spring of 1873 no rain fell, and, when harvest approached, complaints were heard from all parts of the State of very serious damage, if not absolute failure of crops. The newspapers took up the cry, and when the shipping season commenced, it was quite currently reported that the yield would not exceed one half of that of the previous year, which would leave us less than 300,000 tons surplus for export. The result shows that after deducting what we received from Oregon and Utah, we exceeded this estimate nearly 40 per cent, This misapprehension about yield led to a series of mistakes in the business of the year. Freights were reduced to a figure at which ships could not afford to conic here ; while wheat was forced to a price lar beyond its intrinsic value. Here the iirst losses commenced. Parties had sold wheat, for future delivery, in Liverpool, at what appeared good prices, and had chartered vessels to transport the same ; these had to fill their contracts at extreme prices for wheat, and with exchange badly against them. Others had chartered ships to arrive, at very high figures, expecting a still further advance, and were compelled either to re-charter, at a serious loss, or to load their vessels with dear wheat, and trust to an advance in Liverpool to bring them out. Such an advance seemed probable (although European quotations were already very high ) and many cargoes wore floated; but, after January, instead of rising, the market there recoded very rapidly, and our shippers were bitterly disappointed. The result was a quick decline in wheat here, and a partial rally in freights ; but a new class of losses now occurred—for the farmers, who had in many cases refused 2.3nd0l percental for their wheat (expecting to realise 3.oodol—a figure their new advisers informed them would surely be reached) were unwilling to submit to the decline, and commenced shipping their wheat on their own account. The second loss was worse than the first, and the business of the year closed ns unsatisfactorily as it commenced. Looking’ over the field, with' the light of experience to guide us, it is evident now that wheat never should have gone above 2/, cents per pound, nor freights to Liverpool under £4 per ton. Had those rates been maintained steadily we would have gotten rid of nearly all our surplus, before the English markets began to decline. Dear as the lesson proved to be, it could lie borne wit,it some patience were it likelv to be utilised; but, unfortunately, there seems little probability H,a .. . h the ease. Already, a band of ehni laiana, mm, unfortunately, appear to have obtained control of the press, are ventilating new dogmas of trade, urging farmers to leave their legitimate calling to become merchants ; prophecying, that by leaving the old channels, an agricultural millennial will dawn on the State. The farmers, themselves, eager for high prices, are only too easily deluded by this kind ol clap trap, and, unless wiser counsels prevail, we may expect a recurrence of many, of the blunders of last year. Turning from the past to the present and future, we have the promise of the finest wheat crop that. California has ever produced. The season lias been everything that could be desired, both for planting and growing, and now that the harvest is at hand, the whole State appears a field of waving grain. How great the yield will be it is extremely difficult to calculate, but a surplus for export of 7011,000 tons seems certainly within the bounds of probability. This would give us a total yield of about 31,000,000 bushels. Unfortunately, we cannot expect to realise very high prices for- this crop ; the immense plant of wheat all over tho world, and tinpromise of abundant harvests throughout, preclude that; but still, the aggregate amount realisi dto the State will foot up many millions of dollars, while tiie prolific yield of our soil will, even with moderate ijiices, make the crop fairly remunerative to our farmers. Wc onlv hope that they will not be led astray by the high-flown theories of newspaper philosophers, but will meet the market fairly; allowing ship owners a proper return lor their enterprise and risks, and hearing constantly in mind that it will require the steadiest and most earnest co-operation on the part of all interested, to get the crop out of the State, before that of 1574-0 begins to come to hand.

New wheat is coming in very slowly, the harvest being somewhat lute, and present prices alfording no particular inducement tor farmers lo go to extra expense to hurry forward their grain. The samples that have reached us so lar have not been as clean as we would have liked to have seen them, but we do not think they represent the general crop, the character of which we have every confidence will be satisfactory. New wheat commands Uudol per lOUllis: freights to Liverpool are £4 per 224ulbs; English limns a2 shillings, cost and freight and iusurauee, for prompt shipment, which, with Exchange at Hi|j-d, means a stoppage of business until a change of some kind occurs. Barley -As will be seen by reference to our statistical tallies, our exports of barley during the past year have been nearly three times as large as (luring the preceding twelve mouths, and nearly twice as great as during any similar period since we commenced shipping this description of grain. This result was brought about by the lailure of the crop in Canada and the Northwestern Slates, which caused a demand forsliipmeut by rail to Hie .Mississippi Valley, and even to the AtlamiiT seaboard, by which we were relieved of over 3lij,ui)o centals, Our last crop was a good one, both in quantity and quality, and, had it not been for this extraordinary call from our friends across tlie Continent, prices would have ruled extremely low during the entire spring. As it turned out, our exports netted over a million of dollars, and the crop consumed here represent ed a value ol probably tour millions more. Our early exports were, its usual, principally to South America, supplemented by a few cargoes to New Zealand; and, shortly afterwards, some shipments were made to England, entirely of Chevalier, the bulk of which subsequently found its way to New York. These demands, however, were entirely filled, and the new year found us with large stocks and no prospect of relief, when the appearance of buyers from Chicago and other Western cities altered the face of allairs completely, and relieved farmers of what must have proved it heavy load. The present crop will undoubtedly prove a large and extremely lino one; but whether we can hope for further relief Irom the same quarter remains to be seen. 11 is pretty well ascertained that South America will call on us for very little tliis season; and the demand from Australia and New Zealand does not promise to bo large. With freights as High as they are likely to rule, we can do little with Europe, even were our barley iu demand there, which it is not. At the same lime, the high rate of freight to Chicago and St Louis, by rail, operates very seriously against us iu that quarter, and we have yet to see whether the western people will take our grain in any quantity at a charge lor transportation of 3iidul.s per ton. Our own impression is that except in times of absolute scarcity we eau look for but tittle: business that way, and the chief value of the export of last season will lie to familiarise the minds of brewers and distillers there willi the idea of getting barley from California, and to impress upon their minus flic tact that, for a certain price (though perhaps a high one), there is a source of supply of good grain on the i’aeilie coast. The amount of new barley that has so far come to hand is inconsiderable, but quite sullieient to depress the market materially. Sales of feed have been made i clow I dot per cental, and it cannot belong before the market retires to so cents. Old feed is dull at 1 dot 33 cents to 1 dol 45 cents, and old brewing at I dol 70 cents to 1 dol 75 cents per too lbs. Oat:, —The new line of steamers to Australia calls for some few hundred tons to make freight, but outside of Unit our foreign demand amounts to nothing. Old samples are dull of sale at t dot 50 cents io 1 dol 75 cents per cental. New grain will not appear in the inarKet until late iu the present month. The coming crop promises to be an excellent one, both iu quantity and quality. Flour —The increase in our exports of Horn has been one of the most striking features in the business of tile past year. During tile years 1667, 1668, 1669, our millers had a good trade with New York and Kio Janeiro, which, added to the usual business with China and Bacilie pons generally, swelled our exports iu each year to over 450,u00 bbls. .Since Isbll the lOreign b isiuess lias declined, and iu no one of the lotion lug three years did we export 3n»,00..b bl.s. During tiie past twelve months, however, no less than U/4,00U bbls were sent away, nearly one naif of which went to England. It would be gratifying it We could confirm luc impression that prevails very generally hero, that lids demand arose legitimately from the superior quality of our Hour; bin such, uulortuuateiy, was not the ease. The price of wheat was so high all through the season Unit it was with great (liliieulty that orders were filled; but Hour was, throughout, relatively cheaper than wheat, and consequently could be used. In many eases, where wheat could not. France, 100, which in ordinary years supplies England with large amounts of Hour, was all through the last year an importer instead of an exporter, so that room was Jett for outside sources of supply. For these reasons we eau hardly look upon our trade with England as fairly established, and, indeed, from the diliieulties that have attended ilie distribution of our Hour among consumers there, wo doubt if there will be much call for it daring the coining season. Still, the knowledge that California furnishes a basis of supply in time ol need, lias been widely diffused by the shipments ol ihe past season, and in that way good will have been done. The shipments to Europe consisted entirely of very high grades. Those lo China, which were the next iu importance, of siqicrliues, as usual, that grade being the only- one cared ior by the Chinese. Apart from these, the business shows little change from that of the past two or three years. At Che close, we quote snpertine, iu hail and quart***’ sticks, 4 dels 75 cents per barrel; extra superfine, 5 dols ; extra bakers’, 5 dots 3a cents, with a very moderate demand, and a probability of lower prices its tile season advances. Freights—V\ itiiin the past two years, the chartering of vessels to arrive became a feature iu our freight market, the old California rule having been lo do no business except with what was actually at hand, lit 1*72-3 very large prolits were made by those who took up tonnage on the way, amounting in many eases to 40s sterling per ton on long lines of ships. The success that attended the movement naturally encouraged competition for vessels to carry the crop of Hist season, and a large portion of all the ships due between July and January were taken up at rates ranging from £4 to £I 15s per ton. The anticipations ot a proHt, even on these high prices, seemed justilied during the months ol July and August, and the market during those months ruled steady tit about £4 15s. But when, in September, the’pvice of wheat was rushed up to 2.30 dols per b Mbs, spot freights commenced to decline with corresponding rapidity', and those' who had chartered to arrive found themselves face to lace with a licavv loss. A few, who were fortunate enough to cover their ships with w heat before the rise took place, were saved irom harm, but for the others there was no salvation. During October, November, and December, the market ranged from .£3 10s to JE3, tor vessels of good class. After the commencement of January, matters improved a little, and during January ah February the ruling rate was about £4; but the steady decline in tiie English-wheat market in March (which has never since been recovered) again caused a decline, and rates averaged £3 It is to £3 5s during tiie spring, and until l:m advent of the new crop again gave a stimuli.s to the market. As we write, ships for July loading hardly command bl to Liverpool, although there is only a moderate amount of disengage if tonnage here, and Ihe harvest is late. Masters however, are, as a rule, indisposed to accept tliis figure. Meantime, during the Spring, charters to arrive: hare again been freely made, at rates ranging f font f. 3 15* to CI 5s lo Liverpool; the price depemli'.m somewhat on the Mine eaelt vessel was due here, and more on the standing of the parties chartering, The amount of tonnage on the way is now quite large (aggregating Lss.oo.iregistered tons) and is increasing. Still, our crop being large, we shall require a large amount of tonnage, and there seems good reason to I: lieve that fair paying rates will be maintained throughout tin* year. "'l'hehigh rales which prevailed tor wheal freights in llte beginning of the season, naturally caused a heavy advance hi ail other kinds, and while shippers ol barlev to South America were compelled lo pay 1:3 5s to Iqiiique, and £3 ids to outside ports (a sixty Jays’ voyage), lumbermen were still in a worse plight, rates to South Ante: lea (west coast) going lo g.'idols and 3 dols from the Is or i It, 3ldols Mexican to Slianghae, and L's lbs ami .£ll to .Melbourne. These markets, however, are now pretty miieli closed, storks having outrun demand, in every instance, audit is evident that outside of grain shipments the demand tor vessels during' tile coming season will be light.