Manawatu Herald. THURSDAY, JULY 12, 1900. The Hemp Market.

Manawatu Herald, 12 July 1900, Page 2

Manawatu Herald. THURSDAY, JULY 12, 1900. The Hemp Market.

The * merchants' 'mfofln' ■" the flax--niillers that their produce has' fallen considerably; owing -to ■, the large quantity of Manila hemp- tbaV &as -feeen imported into London, and they quote the quantities. The flaxrnillors become thus-racquain^ed' that at present there are few "buyers in the London market, but we arrive at the conclusion that this is not because the price of N.Z. hemp ia too much, but; .that this is ojie of the seasens of the year, there being two, in which the manufacturers take a spell between harvests in . America and Europe, awaiting the deyelopement of the quantity required for the coming business. The report from which we shall quote amply illustrates that the fact that the prices of fibre are high and low, little affect the manufacturer, and he will buy in the market at the market rate, when he knows how much he requires This has more to do with the question of interest to us than anything else, and as to the question of the competition of Manila, everything points most favourably to the advantage of the flaxmillers. We have examined the report very carefully and believe- the result will be improved prices in the near future. The report bears date of 28th May, and is from a wellknown firm of fibre brokers. Producers are informed that whilst in 1899 the total of bales of Manila received amounted to 285, 000 j' yet up to May 28th the total received for this year had risen to 456,000, which seems very disproportionate and liable to lead to a decided fall in all fibres, but just because this shipment has not led to that fall is one of the reasons we may anticipate

that prices will improve in the future. The report quotes : — Manila hemp — The market opened with a quiet tone which prevailed throughout the week. Tho price of Fair Current declined about £1 per ton, a few parcels out of the large arrivals now taking place being pressed, and " Bears " or second-hand holders being willing to 3ell distant. On the other hand the value of low grades is fully maintained." This sufficiently illustrates that the importations for the five months of this year, approaching to double the quantity for the whole of the previous year, has had but little effect on present prices, and suggests a knowledge on the part of holders of a lesser quantity being forthcoming for the future. The report states that " the reports cabled by Manila houses continue to be of a moat pessimistic nature and point to an inevitable falling off in receipts at an early date. The trade, however, is not influenced to any extent by these predictions, preferring to take the risk of waiting until they are verified." That is just what our producers have to understand — the rope anS twine makers care only to buy up to their requirements, and ere willing to pay the market price for the unmanufactured article, and they thus run no risks of a fall in prices or a glut in the market. If the raw fibre is scarce they pay the increased price and charge extra for the twine and rope; The traders in England conduct their own business and do not 'strive 'to participate in any one else's. To us, it is pleasing reading" "tliafc the Manila houses continue to report "most pessimistic" on the trade, and point to "an inevitable falling off in receipts at an early date." The manufacturers on their part do not wholly put their faith in these reports and buy as their needs require, waiting without . excitement for the reports to be Verified/ It will be noticed that on the 28th Mny after the- arrival of the large parcels of Manila, prices only fell twenty shillings a ton for the best, and the lower grades never fell at all. , : . As a further backing up to the .conclusion at which we have arrived we quote, from the report previously mentioned, the state of the values of other hemps. We are to d that for Paltic hemp and hemp yarns the prices are well maintained; Italian hemp — the market continues steady. Shippers do not show any general inclination to reduce their prices ; Manilai — transactions in hemp actually on spot have been only in retail prices ; Bombay hemp — the market continues idle chiefly for want of supplies of standard grades at reasonable prices ; Sunn hemp — Bengal Crop has been in good demand, and a few parcels on spot and afloat have realised full - prices ; Mauritius hemp — the market remains steady with retail sales at unchanged prices ; Sisal hemp — the market is nominally unchanged ; N.Z hemp— the market has ruled easier in sympathy with Manila." Thus flaxmillers • should be cautious about entangling'themselves with any sized contract at present prices offering.