PRIMARY PRODUCE

Hokitika Guardian, 16 June 1930, Page 3

PRIMARY PRODUCE

IN teresT com men t

(Exchanges.)

THE WOOOL .MARKET

Confidence in the future in the wool market appears to be justified on die facts. As is well known, pnqes. for raw wool rose at the last London series of sales, and the market showed great strength at the close.. The same good tone lias been manifest in recent sales in the Commonwealth ind is confirmed by the appreciation of Bradford tops as quoted a few days ago. This upward trend is the more remarkable in view of the general degression in world trade following the financial crisis olf last year in New 'fork. That wool has been able to make some headway against these adverse influences, in addition to inlustrial trouble in Bradford, indicates flint there is a strong undercurrent of demand; and raises the exeeptation that wool will be placed in an even better -position as general trade improves.

REDUCED EXPORTS

New Zealand is holding back far too much in the form of convertible wealth. There are over 140,500 bales of wool unsold, and now the dairy division reports 11,457 tons butter iml 13,381 tons cheese in store as at \lav 31, which seems a heavy holding ick of. dairy produce, when coinparrd with 6385 tons of hutter and 8842 tons of cheese held at May 31. last year. The wool at the low value of £l2 per bale (the 1929-30 average was £l2 2s 6d) represents £1,688,616 withheld from circulation; and the butter and cheese, also taken at low free on board values of £l2O per ton for butter and £75 per ton 'for cheese, represent between £22,376.015. Wool and dairy produce in New Zealand, but unrealised, total roughly £4,064,600. Of course a fairly large quantity of butter and cheese in store will be requir'd for the local market, but in any rase the carry-over of wool and dairy produce in the present financial circumstances of the Dominion is substantial. Meat held in stock over and above last year’s returns would also have to be taken into account.

AN OFFICAL REVIEW

“The declared value of exports for April was exceptionally low,” states the Government Statistician, in reviewing overseas trade. He shows that the value of exports reached but a total of £3,948,789 a figure 28.3 per cent, below the average for the five preceding years. Although imports during the same month show a decline of 14.4 per cent., the position is not as good as indicated, as the figure for \oril, 1929 was considerably above the average for this month. The aggregate exports for the first four months of the year record the phenomenal drop of £8,100,000 as compared with a similar total for 1929, and is £5,000,000 lower than the average total for the period for the previous five years.

Imports have reacted but slowly to fhe pressure of the prevailing financial conditions, the Statistician continues, the decline between the two four-monthly periods of 1929 and 1930 being only £107.000, or 0.7 per cent. of the heavy drop in the total of exports shows that wool contributed £6.700.000, cheese £771,000 and butter £729,000. Wool shows the extraordinary decline of 51,000,0001 b in quantity while cheese also shows a re cession of 138,000rwt. Butter on the other hand, records an increase of in nooewt in the ouantity sent forward. There has been a drop in the market value of all three commodities but. more serious in wool and butter, nnrl tbo imnort.ance of this can he gauged from the fact that these two

items occupy first and second positions respectively on the list of principal items of export.

BALANCE ON THE WRONG SIDE.

As was shown when reviewing the Customs returns for April, exports for the four months of this year were of the value of £21,518,115, and imports £15,764,552, a balance in favour of the Dominion of £5,753,563 —for the first four months of the year, heavy export months as a rule.

For the 12 nioliths ended April 30th. the total exports were of the value of £47,488,607 and the imports of the value of £48,600,345. These returns show a balance on the wrong side of the ledger for the 12 months of £l,201,738..

For the 12 months ended April 30th 1929 ,the position was:— Exports .. .. .. £06,096,794 Imports 46,428,619 Excess exports/,. £9,688,175

The returns for the first four months of the current £ear show that the Dominion trade i,s goihg iu the right direction, making towards a reasonable balance of exports over imports, but the heavy carry dvprs Of wool and dairy produce cast a shadow over the Dominion which it is hoped will be dissipated well before the 193031, export year beginning with the shipments of early make of butter in August and September, followed by wool a little later this year in late November.

DAIRY OUTPUT

Returns of gradings of butter and cheese for export for the 10 months ended May 31st. show an increase, of 9.77 per cent, on butter-fat production as compared with the corresponding 10 months of the 1928-29 season. The gradings for the month of May only compare as follows:

May 1930 May 1929 Tons Tons Butter .. 3503 3417 Cheese .. 5274 5189 Increase in butter, 2.51 per cent.; increase in cheese, 1.63 per cent. The returns for the 10 months ended May 31st. were as follows:---10 Months, 10 Months, 1930. 1929. Tons. Tons. Butter .. 93,611 79,617 Cheese .. 84,333 84,064

Increases for the 10 months: Butter 17.57 per cent; cheese 0.31 per cent. Of the produce graded for the past 10 months 1591 tons was unsalted butter, toe remainder being salted; and of the cheese 56,094 tons were white, and 28,239 tons were coloured.

HEAVY STOCKS HELD

Butter and cheese stocks held at various grading stores in the Dominion as at May 31st. last are 'very heavy compared with the quantities held this time last year. The dairy division reports returns as follows:

Butter. Cheese, May 31st. Tons Tons. 1930 .. .. 11,437 13,381 1929 .. .. 6,385 8.842

Excess 1930, tons 5,052 4,539

NORTH AMERICAN BUTTER PRICES.

The Dairy Board reports having received the following advice from its agents in '.Canada: —'Butter: New York 33 cents- (Is 4)d), Montreal 27£. cents (Is l|d), Toronto and Montreal stocks 81,832 boxes, last year 23,025 boxes.