THE BREADSTUFFS AND PRODUCE MARKETS

Otago Witness, Issue 2817, 4 March 1908, Page 22

THE BREADSTUFFS AND PRODUCE MARKETS

Friday. In the wheat markets the week's events have possessed more than usual interest | for operators. Following the signs of | weakness commented on last Saturday came news of a complete collapse in prices. The continuation of enormous shipments , from America and the Argentine demoral- j ised the market in Mark Lane for the time being. Cargoes were neglected, and Australian parcels afloat were sacrificed at 345, while Australian wheat on spot was offered at 36s— or a decline of from 3s to 4s per quarter, and a total drop from the highest point reached in October last year of 10s per quarter; but a partial recovery was not long in coming. Last Wednesday 1 the news came to hand of a firming in the London market, with a recovery of from 6d to Is per quarter ; and this evening we have the further news that wheat is hardening;, with an improved inquiry. The question now remains, Is this recovery only j tho reaction after the oollap«e of a week ago. and will the improvement be only temporary? Or is it tlv> beginning of the , great upward movement in piicc3 which for so lonsy has been anticipated? In support of the latter view, we anpend the follow.ing report by " Beevbohm," dated London. January 17: — Wheat. — The continued enormous shipments from America and the close pioxiniity of large Argentina exports have combined to bring about much weakness in ihe market this week. The question of the moment is not so much what Argentina may export in the next six months, because we know there are limits in this respect, but rather _ is, 'a«3 we suggested in our last week's review, j how long can America; continue shipping at ! thifi enormous rate? Those who we regard I as reliable authorities in these matters say ! that at the present rate of exports the end , of February will see the end of the American. I available surplus. Experienced observers in the wheat trade know how difficult it must be to judge of America's real capacity to export in a season like the present, when sheer necessity for gold compels the sale of the article! but we are inclined to regard

, the suggestion that America's exports wiH fall off very largely after next month as al very reasonable one. The English bank rat« has thia week been reduced to 5 per cent., which is a very satisfactory move, because there is no <k>ubt that the stringency in tha money market must have been a 1 very serious hindrance to business both in this country and in Germany, the two chief importing countries ; whilst in America,, as must bei quite obvious, the financial "debacle" haa had a very serious effect upon wheat ex* ports. It ia. we think, a mistake to assume, as some are inclined to do, that because tha European importing countries have not so far this season imported as much wheat »9 was expected their a-ctual requirements are materially less than has hitherto been! supposed. Dear money And high prices hav«i been against foreign wheat buying in Ger-« many, whilst high prices and an expectation! that the import duty would be reduced ia consequence, have prevented foreign wheatl purchases in Spain and Italy. This means, natu.ra.lly, that there has been the greater drain upon home-grown wheat in these coun* tries ; otherwise we think there is no reason! to believe that the position in respect to European requirements is materially altered! from our recent estimates, which were thatt Europe would require 1,150,000 quarters perj week in the present season, as compared with 1,133,000 quarters per week imported! last season, 1,166,000 quarters in 1905-6, and 1,088,000 quartiears in 1904-5. So far, in the 24 weeks which have elapsed since August 1, Ole -weekly aveflrage skipmeuis nversgc 1,025.0001 quarters, against 1,130,000 quarters Wfl season, and 1,140,000 quarters in 1905-06. Om . the other hand, the actual imports into I Europe in the five months from August 1 to December 31, as indicated by fhe returns for the United Kingdom, Germany, Belgium!, Holland, and France, have been at the rate of about 4.850,000 quarters per month, against about 4,800,000 quarters last year, which shows an annual rate of over 58 million quarters', as compared with 57£ millions last season. Our estimate of 60 million quarters required by Europe this season may, therefore be regarded as perfectly reasonable. Indeed, when one remembers that, according to official returns, the European crop of 1907 h«rdl» reached 200 million quarters, as comparer with an average for the previous three years of over 230 million quarter*, it would be difficult to suppose that tbe- import require* ments could be smaller than the average; equally futile is it, we consider, to suggesft that the present level of prices limitp or re-» tricta the consumption of wheat. We musli wait for the 50s level before this would happen. Tho Commonwealth market shows signs of fluctuation, but on the whole prices haya f esponded promptly to the improvement intLoiidon. Sydney quotes milling wheat at 4s 43d, as against 4a 4d last week. Mel* bourne, on the other hand, shows a drorf from 4s 3d to 4s. Adelaide, whicn usually reflects London parity fairly ae< curarely, quotes wheat at Jte, as against 3s 9d last week. • The following quotations from latest Australian files are erf interest! at the present juncture: — The local market (reports the Australasian)! ha-s been dull in tone, with an easier ten* dency. Supplies are not offering very freely* but the demand is small, as prices in Vie* toria are still too high for export, while mil* lers only require to buy enough wheat td supply the local flour trade. The Melbourne market h»a fa-Hen about Gd per bushel Bine* the early part of January, but it is still above the parity of marists abroad, whichJ have also fallen in the meantime. Any ex« port orders coming to Melbourne continue tq be executed in Adelaide, where wheat luu* been bought in good-sized! parcels at 4sv Victorian wheat has declined to 4s Id, a-fl which the market is now quiet. The Sydney Mail reports : —Wheat, stacked! at Henty, Marrar, and Ganmain, belonging} to the Scottish-Australian Investment Company (Ltd.), amounting to 20,200 bushels, was ■ secured in public competition by Messrs; Brunton and Co., millers, whose tender was 4s 4Jd per bushel. There were competitor^ prepared to pay 4s 5d for portions of th* stacks. But the company, after some delax (which had the effect of keeping back buri-. ness in the open market), decided in f«voufi of Messrs Brunton and Co.— whose price wad conditional upon getting the whole of tlie stacks. Beyond this, the deals during th« week were of no great importance, as indic«fc» ing the level of the market. There wa» practically no speculative buying. i The local wheat market has followed! ' pretty closely the trend of events at Home* , At the end of last week, consequent on that ' news of the depression in Mark Lane, at few lines of wheat were offering at under 4s, and possibly a considerable quantity could have been secured in the Timaru dis« 1 trict at 3s lid on trucks, or event at a) ! shade less. But buyers, anticipating a further fall, were slow to operate except fo* immediate requirements, and the quantity aotuallv secured at that rate was comparatively small. The news of the firming of the Home market was immediately fol* ~ lowed by a similar movement locally. Today there are no offerings at under 4s on! trucks, but in the Timaru district it i» posaible to purchase at that price. Round about Oamaru and Waimate Ike offer of 4a on trucks has actually been refused within • the last day or -two, and sales are reported I at 4s Oid on trucks, but growers generally 1 are not disposed to rush their grain on tue market, preferring to await development; and, on the other hand, millers are not anxious to invest in wheat at present prices so long as the flour market continues in its present unsatisfactory condition. At the same time, any further firming in the Home market will be immediately reflected locally. There is no great demand for fowl feed 1 , and local orders are being supplied at from j 4-s 3d to 4s 4d ex store. Millers state that

I j KEXXARD * CAMERON, Stock ana* Station Agents, Toowoomba, Darling- . Downs, Queensland, report continued good 6aies o f Downs properties, principally to Victorians and New Zealanders. Acting under instructions from I. M. Greenaway, formerly of Orari, Canterbury, they are offering" No. 1 Subdivision of his famous Felton Estate, comprising some 13,000 acres. subdivided into farms of from 150 to 320 acres, at prices varying from £4- to £7 pexj acre. This estate is beautifully situated^ within easy call of rail, and bandy to Toowoomba. and contains undulating bhuok soil ridges, lightly timbered, and open plain** Water can be got anywhere by sinking. Well sheltered, perfect climate, with art j average rainfall of 30 inches. Ideal farm* for dairying and mixed farming. Thar terna are specially attractive, being one* fifth cash, one-fifth in three years, and) i balance at end of 10 years, with 5 p«i( cent, interest. Kennard and Cameron also have particulars of a large number of improve*} properties, a!so subdivisions on Yandilla, Eilangowan, and Balgownie, ia immediate vicinity. Correspondence invit«# and everj. information given*

of the Taieri wheat is unsuitable for gristing, co that there is a possibility of ite (Coming on to the market as chick wheat. Contrary to gjeueral e\pectation there has been no alteration in the price of flour this week, notwithstanding the imports of Australian flour ooming to hand and the cutting quotations from Melbourne which are freely being made. Auckland advices state £hat Melbourne flour is on the water for thai port at a cost of £8 per ton f.0.b., while considerable quantities are offered for shipment to this market at £8 10s f.o.b. There is evidently a danger that Melbourne millers, unable to do their usual export trade in flour with London, Africa, and the East, may throughout this season make New Zealand a dumping-ground for their small surplus stocks. In which event the New Zealand market will be kept in a State of- continual disturbance, and the New -Zealand miller will find it difficult to ■aaintain prices at a uayable point. At ;preeen* the Flourmillera' Association's tariff is unaltered ac follows .-—Sacks, £11 Se; 100's, £11 10s; 50's, £12; 25's, £12 ss. The shipping price is £11 per ton, and the •Invercargill price £11 10s ■ There is no' alteration in offal, and the association's tariff stands :— Bran, locally £5 ss, and fox shipment £5 f.0.b. ; pollard, £6 per ton both for local orders and for Shipment. The demand is very brisk, especially for pollard. " Opinions still vary as to the future of oats, but at the moment the market has a decidedly firmer tome. Two large lines feave been Bold in the Gore district during fhe week at 2s on trucks, and this k the 2s 4d to 2s Aid f.0.b., s.i., for early delivery. So far the Southland deliveries have been comparatively small, and the real position will undoubtedly develop itself in about a fortnight's time, when the quantity of oats offering should be considerable. The nrice of oatmeal is unchanged at •£13 per" ton. The potato market is unchanged. Best Oamarus are offering at up to £6 (per ton, and Peninsulas at from 6s 6d to 7s per cwt. The price of firetterade factory butter has been advanced by Id per lb, and the tariff now stands: Bulk Is Id, prints Is l|d booked and Is lid cash. Other grades have advanced in sympathy, «nd current quotations are as follow: — Dairy pats 9d to 9£d, separator bulk lOd, separator pats lOd to lid, milled 9d to 9£<L Cheese is firm, and inclined to harden. Factory mediums are worth 6|d, and 'Akaroa loaf 6d. Eggs are easier at Is per dozen. Quotations for poultry are as follow: — Hens, 2s to 2s 9d per pair ; roosters, 4s to ss; goslings, 5s to 6s; ducklings, 5s 6d to 6a; ducks, 4s to 4s 3d; turkeys — hens sd, gobblers 8d to 9d. ■ ißaoon pigs are quoted at s£d ; porkers, 5Ad : "bacon, 9d per Ib. The market is well supplied with ohaff. New season's is quoted at £3 7s 6d to £3 12s 6d; -extra choice, up to £3 15s. The enhanced value is due to the active shipping demand for the north, the f.0.b., s.i. price being £4 5s to £4 10s. * IMPOET MARKET. "The following are the principal iines affected by the new preferential tariff, " which comes into effect at_ the end of March : — Camphor, axe handles, clothes pegs, sareap&rilia, cocoa, cuticura soap, apecta water, -canned fruits, canned vegetables, brooms, preserved .grader, safety matches, metal polish, brOliantshine, sapolio, grape nuts, force, painter's ItusAware, and cartridges. The Karamea brings supplies of a number of lines which are badly wanted, these including Cerebos salt, red herings, 12's, 24's, and 50's, Oolman's mustard, and Gqlman's Starch. Some very low quotations are being made for cream of tartar, for forward delivery, this fce.'ng on account of the abundance of the French vintage this year. For immediate delivery, however, merchants' are quoting from 9gd to 10±d for 90 to 95 per cent, low-grade samples about 80 per cent., are bens? offered at 9d. The Indralema is d'scharsring her cargo of kerosene. It is expected that between 17,000 and 18,000 cases will go into consumpt'on at the ex-wharf price — viz.. 10? d. The mail summary* published with this ieeue, contains a record of the t>ast month's j harjpenings in the import market, together , with price current revised to date. This will be found useful for reference.