RAW MATERIALS SAG

Hawke's Bay Herald-Tribune, Volume 81, Issue 15, 11 October 1937, Page 6

RAW MATERIALS SAG

Severe Drops on London Market DISTURBING SETBACKS (Received 11, 8.45 a.m.) LONDON, Oct. 9. It is years since commodities markets have experienced such assaults. The collapse became really serious on Wednesday, and the half-hearted reeovery made the following day has not been maintuined. It is difficult to believe the present prices for raw materials, compared with the lofty heights to which they soared in the spring. Rubber producers are perturbed at the setback, and it seemA there is no doubt that the committee will cut the quotas unless there is some revival in price, as it is known they favour a stable figure around 9d per lb. A little trade buying is already sufficient cause for u siz'eable rally. The futjire for metals appeaTs to depend on Wall street. Copper statistics are expected to show a substantial increase in stocks. It is estimated that the world tin stocka will also rise by more than 2000 tons in Oetober. Cotton is. the exception to this generalisatiou. On size, the estimate of the American crop is unbelievable. Production in Eussia, Chma, Brazil and Egypt is also certain to be higher. The total world supply of cotton is now estimated at 50,500,000 bales, and the consumption is not likely to exceod 31,000,000. It will not be surprising, therefore, if it is not sold down to the ; lowest price on record, if the devaluated dollar is tuKen into account,