WELLINGTON NEWS

Hokitika Guardian, 30 September 1927, Page 4

WELLINGTON NEWS

THE PRODUCE MARKETS

(Special to •“ Guardian ”.)

WELLINGTON, Sept. 23,

The state of the produce markets at the moment gives rise to very optimistic feelings, for the outlook is certainly very encouraging. For a very considerable time frozen meat was under a cloud. New Zealand mutton and Jamb sold at ridiculous prices at Southfield, and the cfleets of tiiis is to he seen in the annual reports of the co-operative freezing companies, which are now being circulated. The dispute between certain meat interests in the Argentine was responsible for a keen cut-throat competition in chilled beet which was dumped on Smitlifield at very low prices. Consumers naturally turned to this cheaper meat, with the result that mutton and lamb were neglected and prices dropped. During the past few months the meat packers of the Argentine raised their prices for steers. a> otherwise there was danger of the farmers taking up with dairying. With higher prices for steers advance was made in the price of chilled heel', and this improvement was to some extent reflected in the quotations of mutton. Then the meat imported suddenly awoke to the fact that there had been a drought in Australia, and that supplies from that source would he smaller, and shipments delayed. In two weeks there developed a speculative demand for forward shipments which had the effect of immediately forcing up the prices of mutton and : lamb. Last week there was again a further improvement, values being higher by >d to Jd per lb, and just now every fractional advance means so. much gain. The fact that there has, been a demand for forward shipments is particularly interesting for it indicates that until these forward ship-; incuts have reached the market it will he of interest to the buyers to hold up the market. Therefore it seems very probable that the current advanced prices have conic to stay for a time at least. Some weeks, probably five, must elapse before any of tlie works can begin operations, and a good deal may happen before then, hut on the whole the prospect is that the opening of (he season will see prices a shade better than they have been. | Moth the butter and choose markets are firmer. New Zealand salted butter, is quoted at 18'-’s. Australian at 1775. and Argentine at I7;is per ewt. There is thus very little margin between the three makes, which means that consumers have no cheap butter to fall hack upon, and must either go without j butter altogether, or buy very much less, supplementing with margarine. The latter course would no doubt have the stronger appeal. The higli price of butter has cheeked the demand, for one' cable message states that there is very little doing. Advancing prico9| always have the tendency to check business and it must not be overlooked that the purchasing power of British! consumers is somewhat restricted. The same factors which have led to an improvement in meat are operating in respect to butter. Australian production is likely io he less and overseas shipments will he delayed. The cheese position looks good, for with smaller contributions from Canada the New Zealand product must receive attention, and the expansion in the demand will help to maintain values at a com-j parativelv high level. j

The outlook for crossbred wool has taken n sudden definite change for the belter. Last week the quotations for Id’s and IG’s tops rose Jd per 11>. while other counts remain unchanged. This

is rather significant for so far Llic do-, maud has lieen concentrated on finer wools. Such an advance could never , Imve taken place wore it not warrant-* ed by the demand. It must, however. I not bo overlooked that conditions are' still far from satisfactory in the con-j sinning centres. The cost of wool is consistently keeping well ahead of the price at which it can he sold, as tops, j yarns and price goods. Although improvement is admittedly coming about in innniifncltiring conditions, yet spinnets complain that yarns are being sold at prices that do not cover the cost tops liy pence per lb. Mamifnc-. turers snv that cloth is too dear to bill a ready market. Compared with September, 1013, current Bradford

wool values range from 110 to SO per cent higher and the greatest appreciation is in merinoes. The general opinion is that commodities will stabilise at about 50 per cent above prewar levels. If tli.it he so, then crossbred wool must improve on present quotations, while merino may decline.