THE BREADSTUFFS AND PRODUCE MARKETS

Otago Witness, Issue 2817, 11 March 1908, Page 22

THE BREADSTUFFS AND PRODUCE MARKETS

Following the reccnery in tho London wheat market commented upon last Friday a steady upward movement is in progress. and which appears likely to continue. Cable advices from London at the beginning of the week reported the markets firm owing to activity in America, where supplies are falling off, and speculators are trying to cover short accounts. The message also reported that legitimate business was small in face of the enormous quantity offering-. Cargoes were firm, 3&s 6d having been paid for a steamer parcel of Australian afloat, while sales of Australian* spot were effected at 37s to 37s 6d. A later message dated London 3rd March .reported the Mark Lane market very firm at Is 6d dearer on the week ; and most significant of all. the "refusal of 37s 6d for I South Australian February-March shipment. The following day the sale was reported of an Australian cargo at 365, and cf another at about 365; while thi6 evening A cable states that wheat is 6d dearer. The situation may be biiefly <u'nti'i"l ftp as follow. A foitnicL 4 - ago, when die j

market in Mark Lane collapsed. Australian c^go"s an"od.i v.eio soki aov/u as low as 3-^>. and Australian spot wheat, was offered at 365. Sines then Australian cargoes afloat havo been sold at 36«, and Australian spot at 37s 6d. while a further advance of at lea^t &d per quarter has been established. This means that of the 3s to 4s per quaiter slump which occurred when the market was demoralised a recovorj' of at least 2s 6d per quarter has taken place, and the market ie firm, with an advancing tendency. The moat significant item in the news of tho week is. of course, the refusal of 37s 6d for Au»tialian February-March shipment, wheat which would arrive in London in Anril-May, just the time when the market will largely be governed by the reports of the growing crops in Europe and America. The reported operations of American speculators, which is given as the immediate reason for the present upward movement, will occasion no surprise to those who have followed our reports week by week. The only surprise lies in the fact that these operations have been so long delayed. And the fact "that America is waking up to her position, and to the probability that already she has overexported and has drawn heavily upon her reserve stocks, presage 6 a firm and advancing market in the immediate future. In all probability prices will continue to ad\ance throughout March and April — to

vhat extent depends almost entirely upon ihe nerve of the American speculator. — | after that the trend of the market will largely be determined by ciop repoit«. Should the- early reports of the growing' r crops in Europe and in America give the slightest hint of partial failure and oon- ' sequent short supplies, some very high ! values may be reached. If, on tho other hand, the reports ara favourable and proi mise plentiful harvests, then in all probaI bility the market under such an influence j will gradually ease down to a more normal j lex el. Thus wheat speculation has once , more the aspect of a gamble ag-ainst the j weather, and how disastrous this may ■ prove the recent example of the turn of tho tide in Australia abundantly shows. , The lowering 1 of the London bank rate ■to 3^ per cent is another factor operating for higher prices. I The Commonwealth quotations reflect | tli9 improvement in London. Sidney ' quotes milling wheat at 4s s£d to 4s 6d, ac { against 4s 4jd last week. A more recent cable reports that wheat is advancing in • Sydney m sympathy with London. Buyers are offering 4s 6£d, while holders are- disinclined to sell. In Melbourne, where the price last week stood at 4s, from 4s 4d to 4s 4^d is now quoted ; while in Adelaide the quotation has risen to 4s 3d — an advance of 2d per bushel on ths week and 'of 5d per bushel on the fortnight. The following extracts from latest Australian

files must be read in the lifrhfc of the fact that they wore written before the influence of the impiovement in London had been felt: — Despite the fact that glowers showed no anxiety to dispose of th-eir stocks, wheat cam© down in price duiing the week (says the Sydney Mail of the 26th ult 1. and the market to-d-ay was about ljd per bu«he' less than it v:as fixed at a wesk ago by the tenders received in a public compete ion The main factor in reducing the price has been, of course, the gradual decline in the London market. Nearly 10,000 bags were bought in South Austialia for the Sjdney market at 43 2d f-o.b. Port Adelaide. Another 3000 bags, said to be for Brisbane, were «lso purchased in Adelaide at 4s OAd f.o.b. Sales on the Sydney market did not exceed 5000 bags, 3000 of which were bought on milling account at 4s 3d per bushel. In the face of the week's events, the milling firm which bought the 23.2C0 bags (offered by the Scot-tish-Australian Investment Company) at 4s 4£d per bushel might now feel that no gieat bargain was secured. Still, there is the fact that selleis continue to remain in the background, and it might happen that, in order to secure Eiipplies, more than the present nominal market price might have to be paid. Wheat change 3 spasmodically at times, and there is the significant feet always to be borne in mmd — that Australia's exportable surplus is considerable below that of 'previous years. The knowledge that wheat in Sydney went to an extraordinary price bsfore the financial crisis in America might cause growers to a^k themselves whether the rate then was justified by the governing influence of supply and demand. If their view should be in the, afSrjaative, j they might reasonably ask . tneinselves, j furthermore, whether the influence .af the | financial crisis was such as to justify the decline that followed it. Wheat almost touched 6s per bushel a few months back, and now the price is nominally 4s 3d. If the woild's demand befc-re the crisis was a bona fide one, it should still exist, and, therefore (from that standpoint alone), prices now and then shou'd not have such a margin of diffeience. Easier values in London must, however, be regarded as justified, since it ha 3 baen ascertained that the Argentine's exportable surplus assumed much gieater proportions than was anticipated. Australia's exportab'e shrinkage is, according to London papers to hand, practically lost sight of, " because of the- excessive shipments from Canada and Argentine. ' With this briefplain summaiy of the situation, buyers and selleis must determine- what a fair market rate shall be for New South Wales. The local market has recently baen in an unsettled state (reports the Australasian of the 29th ult.). The decline in London iwis materially leduced the basis at which shippers could buy in this market, and thus one possible support has been withdrawn. Millers' requirements are restricted, as it has been practically impossible for them to pecept orders of fleur in face of the High cost of wheat prevailing in Victoria this season, and they need only buy to supply the local demand for flour. Under the^ oircn mslaneea -tte market has been maintained so much above export parity simply by the small quantity offering, and any pressure to sell quickly depresses a narrow market. Last week pales were made down to 3s lid, and in some instances 3s lOJd. This week there has neen a little more inquiry, partly to cover contracts for February delneiy, and the market has recovered, closing at 4s OJd to 4s Id. The surprising suddenness of the fluctuations in wheat is markedly illustrated in the course of events in the local market during the last fortnight. A fortnight ago following th£ report of tho demoralisation of the London market, wheat was offering fairly freely at 3s lid on trucks, and in I some ea*es at 10-s money, without finding buyers. Millers weie looking for a further j decline, and consequently the quantity I which actually changed hands at under 4s on trucks was comparatively email. To-day millers and speculators are offering up to 4s 3d on truebs, and even a shade more money, for all the wheat which is offering, and are unable to till their requirements. Local millers have been in the market ah the week, and considerable sales have been ma.de at prices which, commencing at 4s Ojd and 4s Id on trucks, have gradually advanced until 4s 3d. and, in one or two case* for very prime lines of \ civet, 4s 3?d lias actually been iaid. And at the present time there are buyers in the market at up to 4s 3d on trucks with their requiiementi unsatisfied. The wet weather hfs put a chock on threshing operations and delnveil dolneries, and this, coupled with the fiini aspect of the market, has led growers to hold off from offering for the present. It is only right to say, however, that while there is every prospect of a firm md advancing market for the next month or so, the- future of prices when once May ie entered is full of uncertainty. With the prospect of another possible shortage in the New Zealand wheat supply, the local market will be extremely sensitive to every ru*s ! in London; and conversely, should a downward movement set in, as a consequence- of abundant harvests in Europe and in ; America, the influence of Australia will bo sufficient to depress prices in the Dominion. Growers havo therefore to oxercise a considerable amount of discretion : the present price, 4s 3d on trveks, is an exceedingly profitable return ; on ihe other hand, it is possible that the market may touch 56. But there are those who lefusod 6s towards the end of lnet year, and who subsequently so'.J at a Hi tie o\er 4s. And what has happened may lnmix j ;i again. . The chick wheat market has firmed n "umpnthv with milling wheat, and shlppf n have been filling orders at 4s sd. f.0.b.,5.i ; . northern portr. Good whole fowl feed it worth from 4s 5d to 4s 6<j, ex store, Dunedin. There is a jroorl inquiry for flour, and a brisk business has been done with Auckland (which it, a fiee port «-o far as the association is concerned) at equal ro £11 10s delivered. The Ne,v Zealand Flourmillers Association's tariff is ui'char.srod, and there is no likelihood of the anticipated drop taking place. Quotations for JMelbo'irne flour have ad\anced fully 10s per toa during the wesk. It is being offered from stocks, ex *Toie. Dunetlin, at £11 10s net, delivered at bakehouse. A Sydney cable states that flour has been advanced to £10 per ton. which lends intfqpst to the following report just to hand by mail: — In the ab-ence of any export trade, the demand fcr flour ha 1 ? been considerably be'ow the supply. The we;k ha a , therefore, been responsible for the natural result of such a condition — a fall m price". C.ty millers, who were getting up to £10 10s fcr baker?' parcels, were at the close glad to sell at £9 10s per ton C.ouatry millers continued to get from £0 5s to £3 10s t>er ton for old flcur , and ±'9 os for new. Broken time was still being worked at many of the mil's and, as stocks generally w^ie scud to be

in over supply, the outlook was none tn% good far all concerned. The exports of flour from New §puth "Wales during the week ended February 22 amounted to 1243 sacks (9001b sacks), which were distributed as foN low: — 2s T ew Zealand, 270; Singapore, Java, etc., 518; South Sea Islands, 429; BritieU New G-uinea. 5. The imports for the same week amounted to 4063 sacks, 40 M being from South Australia and 24 from Victoria. The Flourmillers' Association's tariff i^ unaltered as follows : —Sacks, £11 ss; 100's, £11 10s; 50 - 6. £12; 25's, £12 ss. Theship« ping price is £11 per ton, and the Liver* cargill price £11 10s. There is no alteration in offal, and the' association's tariff stands: — Bran, locally, £5 ss, and for shipment £5 f.0.b.; pollard, £6 per. ton both for local orders and fo« shipment. Ihe demand is very brisk, especially for pollard. A brisk business has been done in oatai during the week at price* a shade in ad» vanee of last week's quotations. Deliveries^ which are not hea\y, have been eagerly} taken up to supply the demand for prompt shipment. Shippers are filling orders at from 2s 4-£ dto 2s 5d f.0.0.5.i.— a price which* leaves a bare margin of profit. The Christ* church market is reported higher, up to 2a( 6d f.0.b., e.i., having been paid for good samples. In the south 2s on trucks is the nominal price, but 2s Id is asked for realljj good samples, and in some instances this •has been paid. The price of oatmeal has been reduced by; £1 per ton and now stands at £12. There has been an almost unprecedented! boom in grass seeds during the week, and merchants have been swamped with orders 1 ,, Supplies have given out, and at the moment the market is practically bare of cocksfoot,, Aiyske, Timothy, crested dogstail, and simi« lar lines, except at prohibitive prices. Thaf sale of a line of cocksfoot is reported at; 8d f.0.b., Lyttelton, and other seeds have. advanced from £10 to £20 per ton* Dressed ryegrass is in fair supply at from 4s 3d to 4s 6d for heavy seed, but white clovers have been untouched by the boom. The demand is mainly from the North' Island, but the upward movement has been aided by the firmness of the market at Home. There is a brisk demand from the NortH Island for potatoes, and some heavy, consignments have been shipped during the week. This has firmed the local market", and quotations for Oamaru's range from £5 12s 6d to £6, with an advancing tendency* Latest London cables report that thq butter trade has resumed normal conditions, and private cables state that the current quotation is down to 112s to ll+y,with a poor demand. This means that; with butter retailing locally at Is 3d the price is about 3d per lb higher here than' in London. The recent rains, coupled with, 1 the fact that London buyers have authorised the resale of purchases in the* Dominion, should speedily put an end to [ all idea® c>f a. shortage, and values OUg&H to recede to a normal level at an early date,. In the meantime prices are unchanged as( follow: — 'First grade factory — bulk Is ld r prints Is ljd booked and Is l£d cash;] dairy pat 6, 9d to 9id ; separator bulk, lOd ;i separator pats, lOd to 41d; milled, 9d to 94d. Cheese is firm, and inclined to hasden.Factory mediums are worth 6Jd, andl Akaroa loaf 6d. " • Owing to short supplies the egg market has jumped, and fresh eggs are quoted all from Is §d to Is 3d per dozen. Quotations for poultry are as follow:—* Hens, 2s to 2s 9d per pair; roosters, 4s to ss ; goslings, 5e to 6s ; ducklings, 5g 6d to 6s; ducks. 4s to 4s 3d; turkeys^ — hens sd> gobblers &d to 9d. Bacon pigs are quoted at siad ; porkers, s^d ; bacon, &d per lb. 7'he market is only barely supplied with chaff, partly owing to the demand from tha north and paitly owing to the wet weather) delaying deliveries. Consequently prices have firmed. New season's is quoted ai» from £3 12* 6d to £3 17s 6d ; extra choice, up to £4 per ton. Sales for shipment have been made during the week at £4 10s t£ £4 12s 6d f.o.b. s.i. Oamaru. IiIPOPvT MARKET. The following 3wi!e of distributing prices for cornflour has been arranged by the manufacturers. To operate from the AVaitaki to the Bluff: — Brown's iraize : 15 boxes, 2^d : 5 boxes, 2£d ; ito 4 boxes. 3d. Brown and Poison's maize: 15 bo.xss, 22d ; 5 boxes*, 3d; Ito 4 boxes, 3^d. Biown's patent :| 10 boxes, 3d ; 5 boxes, 3ad ; 1 to 4 boxes, 3id. Brown and Poison's Indian : 5 boxes, sid ; lesser quantities, s§d. The distributing price of Zigzag cigarette papers has been rixed as follows: — 20 boxes* 5s per box; lesaer quantities, 5s 6d. A brisk business has been passing in all lines affected by the alterations in th«i preferenlial tariff, which comes into opeia* tion at the end of the month. A new line in soaps has iust been .placed! on the market— mz., Morton's Magia Cleanser, which ia quoted at 7s 6d pea dozenSupplies of red and white herrings in tins are to hand ex Kaivnmea, and are quoted as follows: — White, 245, 32 3 per dozen;,

ldO'fi 20s per case; red, 245, 29s per dozen; JdO's, 19s 6d per case. The price of G.C. roofing iron has been reduced to £22 10s, with the usual extras. Other iron and hardware lines are unaltered in price.