THE BBEADSTWFS ASD . PRODUCE KABEETS.

Otago Witness, Issue 2810, 22 January 1908, Page 21

THE BBEADSTWFS ASD . PRODUCE KABEETS.

Friday. ' "There has been more activity on the London market during the week. , Latest London cables available at time of writing reported a firm wheat market on the strength of unfa.vpui-a.ble > weather reports from the Argentine, cargoes "showing a hardening tendency. Following the sale of 14,000 quarters Januarys February South Australian shipment (mentioned last -week), we have news of 11,000 quarters South Australian January shipment, also sold at 41s 3d, of 13,000 quarters South Australian wheat expected to arrive in January sold at 41s ljd, and of 14,000 quarters Australian at any -port, January -February shipment, sold at 40s 6d. Two items of intelligence calculated to affect the wheat market must be noted, the first being a further drop in the Bank of England rate from 6to 5 per cent. This clearly^ indicates an easing of the financial situation, which in its turn should, react favourably upon prices and is likely Jo hasten the expected upward movement in Mark Lane. The second item of news to be taken into account is that good rains have fallen in the Punjab, on the north--west frontier, in Sind, and in West Eajputana, and have enormously alleviated the agricultural situation in India. Latest mail advices from India, reported that owing' to the continued dry weather the position in the United Provinces and in the Punjab was growing increasingly serious in respect to sowing" operations. Apparently the rains have now made an improvement^ although- to what extent it is impossible to sa-yv The Indian harvest usually takes place in April-May, and the first shipments of wheat to England are made in June, although they- do not i assume much importance until July. . The > following table is useful as affording some | idea of the location of the various wheat , crops in India, the Punjab being the moat i [ important district -and giving the greatest j I yield: — . - | The Ixdiax Wheat Crop. 1907. 1906. 1905. Tens. Tone. Tons. ' r.iited Provinces 1.755,000 2,018,000 1,897.000 Punjab 3,283,000 3,510,000 2,855,000 Bengal Ist Divi- | i sion 355.000 400,000 i Bengal 2nd Divi- 444,000 sion 41,000 50,000 Central* Provinces SM.OOO 757.000 761.000 Berar 70,000 60.000 83,000 Bcmbay .. .. 505.000 270.000 345,000 Ceatza! India. . 639^000 418,000 449,000 X-W. Ftentier .. 35,000 239,000 267,000 Siva — 230000 124,000 Hyderabad .. .. 58,000 40.090 90,000 Bajnatttas - -. 215,000 141,000 198,000 Mysore — — — flyf*y^ ar .* .^ — I Otoer oi»:ricts..' S.OOO 7,000 — ; Tctal .. .. gjeO.QOO 8,150,0C0 7^13,000 Vaitti Pwnrisc** Unixwi) .. .. 41C.000 -00,000 £=pcrtc<£ .. ? 773J0» 937,000 j The foßosins tmaamMXr of t&e wheat ; mitwstnm, compiled by "Beerbofam** omler [«kte Loadoow Itaeeatoer & it of etpeet&l mtcscse Gar these temaaat. In the fim pL»«.-» it above* haw s«o»iu** «re toe wheat mstduts to tfee iuftitme cf c&e Ataeatiue impost* anrf. Kcuadffj. w&ac a rfMi»rt«w. g utgnatiit ia alt xaarfcss fanncawa has been tbm befioar cf <fear awec?, bow btxz^T efiffiimitttl- — | 14a- jfeadnr af tb* h.ifa..». I Argentic* oo» asd t&»««idaet jamr» t» Bag*— of it i*«idt «aHta> tastOHT witlk 4tar an^ and l ayßex&-bas& w>nwiiaa<TirTrii, kare ptoped. too [maAStrit wa«mt sndact Oat waaav Tks lta»«lHat. tai tarns ajamSliea hmm IbTto . Jail mm fisa; t&aa w» «a£ ta«fc wi&k sew «sa» Ia Ka4* wltatte aa» afcasfc 1» fewer .a^tha<r«aw,w>a» Ili fcr ifcrjii nil fa»» earn 4fcma fe &am &ar rccact high estate.

\ - Apart from this factor, however, there can 1» , no doubt" that dear money has much ix> do, .with' the depression , which- overhangs the market josf »ow; -'a-\7.'*per cent- bank. rate naturally -restricts speculation and binders legitimate' business 1 } and, moreover, tha , financial position "in America, although no doubt improving, js still 'bad, .and- buyers sti"l hsveto fear .a 'pressure to sell whatever, . remaining 1 surplus may exist; This extraordinary state cf the money market may be aaid to have upset all calculations in regard to the leal position of wheat, which all intelligent observers pgree is v ore of much doubt and uncertainty in ''regard to 'future supplies. The- question now con-nionly asked "en xha Baltic in fact is " AVheie will Europe get sufficient wheat during the next three j months ?"_ "We are ' not in apposition to answer this question, and we doubt if anyone is ; but we can show where the supplies caiv.e from in the past two- years, which we do in the following statement, which show 3 the weekly avenga, shipments from each, source for ths 13 weeks from December 1 to February 28: — .Shipments to Europe of "Wheat and Flotir. 1906. 1905. Qrs. Qrs. TJ-.S. and Canada .. ... 340,000 385,000 Argentina 205,030 170,000 Kussia and Roumania- ..' 375,000 430,000 India .' 35^000^ - 30,000 Australia . . . _ IWkOOO 115,000 Sundries ..,.»".. .'. 30,000 20,000 ' " Tota: '..-'.....; ..1,085,000 ,1,170,000 It Is, we think, easy to suggest that the shipments during the three months from all sources,'' except the U.S. arid Canada, jna? not exceed 500,000qrs per" week r and the requirements- an. we believe, are between. l.lODyOOOqrs an 3 1,200,000qrs per week. , .The balance is a, big one for America and Canada ' to make up; the- "only question is, Can thej| do this? -. _ In this connection it" is worth noting that at the beginning of December there was a. growing scarcity, of millable wheat -in Canada.' This was explained in the fact . that for the three months- ended November the exports, were double those of the prej vious year, -and this with * crop in Western Canada' officially stated at only 70 million bushels,-— > of which 'a large proportion ia unmUlable wheat, as against a crop in 1906 of 96 million bushels, all good, wheat. There ia sensational news from the Commonwealth, the" official estimate of the New South Wales harvest being only ' 8,686,000 bushels, as against a. yield lasf season of 21,816,000 bushels. The cebla states' that there will -be a shortage of j over two million bushels for local oonsumpw • tipn. Private advices also state that a. ■ good proportion of the New iSouth Wales" wheat will not be fit for milling • purposes, the l&te rains haying bleached the' gram and_ in other -ways' rendered it unsuitable. It is thus evident that. New South- Wales will require to draw upon South- and West Australia- for./, supplies, .while, as we pointed out last week, Victoria- will only, have just enough wheat for home consumption. Ths realisation of the posif tion has led to a further enhancement of j values in the Commonwealth markets. In I Sydney wheat has advanced 2d -ta 3d per bushel, on the top of the advance noted last week, and the current, quotation -stands .. a**,- 4s. 9d to 4b 10d for "milling puality, or a recovery, of 7d per bushel from the lowest point at' i the end of last year. In Melbourne the market is steady, holders asking. 4s 7d, j with -buyers at 4s* 6d. The Adelaide j market has improved to the extent of Id i per bushel, and the current quotation at that port— viz., 4s 34d, f.0.b., may be re. garded as present Eondon parity, afte* allowing for all expenses " and shippers* profit. r The following reports from latest Aus» traltan files contain much valuable informa< tion : — Most of the New South "Wales wheat* growers (reports the Town and CountrY Journal under date Bth inst.) are agreed as to the policy of declining to tell any of • the new grain until harvesting- is finished* and the arrivals so far of -this summer' « ciops are exceedingly small. The result is that some buyers here, being in urgent needf of gristing samples, are resorting to interstate sources. This week opened with- an announcement that a cargo of prime SouthAustralian wheat has been ordered at Sydney at an Adelaide figure equivalent to 4a ISA per bushel /landed in Sydney), and the Adelaide seller* declined to part with anymore grain for Sydney unless at »n f.o.b.'