BRITISH TRADE.

Hokitika Guardian, 11 October 1927, Page 1

BRITISH TRADE.

fortnightly review. MONEY MARKET SHOWS IMPROVEMENT. LONDON; Oct. 8. I lie closing of the Government’s conversion offer lias been followed by a. sharp recovery in British Government securities, especially 5 per cent war loan. A satisfactory feature is that the recovery appears to be chiefly due to purchases of a purely investment character hy comparatively small investors. The demand for Colonials has been exceptionally good, Australian 5 per cents being bought freely, with the result that the last issue is no longer quoted at a discount but has reached about one quarter premium. With the market in this favourable position many new issues are expected in tlnr'iiear future. The first is the Union of South Africa loan of C 0,000.000 at 5 per cent redeemable in 1945-75, issued at 99J, which was underwritten yesterday. Some surprise. may be felt that South Africa can got 99J while Australia last July only got 98, but it must bo remembered that South Africa’s existing 5 per cent are quoted at 1011, while monetary conditions are far more favourable to-day than they were in July last. Another big loan impending is Brazil’s flotation of Cl 7.000.000, to be placed in New York and a London portion of £8,750.000, part of which! will be allocated to the Continent. The price of issue has not yet been settled, but it is expected to yield investors 7 per cent. MEAT TRADE. Tenders for the supply of 2000 tons of frozen beef for the army at Mediterranean ports close next Friday, but so far as at present is known no Australian firms are competing. It will be particularly disappointing ii the contract goes to Argentina, in view of the fact that Australia secured the last similar contract. It is interesting to note that a complete agreement between the great Argentine packers has been reached, the Blue Star Line having joined the South American shipping conference.

DAIRY PRODUCE. The butter trade has been somewhat quiet the last few weeks, retailers having still sufficient stocks for the market is very firm in view of the requirements, but the undertone in statistical position, and it is expected that prices will be maintained till the new season’s butters arrvo. After that it is believed there is likely to be a demand from America anil . Canada for New Zealand and Australian flutters, which will relieve this market at a time when supplies are very heavy. EGG TRADE. Prospects for the Australian egg trade do not appear too favourable and there seems little likelihood of high prices for some time as markets are plentifully supplied. France having removed her export restrictions.