THE BREADSTUFFS AND PRODUCE MARKETS

Otago Witness, Issue 2894, 1 September 1909, Page 21

THE BREADSTUFFS AND PRODUCE MARKETS

Friday. The London market shows no material change from its position at this period last week. Prices .remain low, and sales are evidently far from general. It oannoi be said, however, that the position is in ajvy considerable degree weak, for the statistical position is undeniably strong 1 , and the explanation is simply that Home supplies are in the meantime commanding the market and oversea business is dull, aaid will, remain in a lethargic condition till the harvesting of the new crops in a few months' lime. * l Beerbohm," under date London, July 16, reviews the position as it then obtained and furnishes »me interesting satieties showing the world's prospects for the coming eeaeon : — "The market continues to chow much firmness, which iray be taken as a sure sign ihs& immediate supplies are insufficient for the actual demand, because milleans do not pay 45s to 50s per quarcer for wheat unless they actually need it. The remainder of thia present season seems likely to be passed on much the same lines ; all the wheat forthcoming will be wanted, and perhaps badly waonited, if the weather does not soon change for the better. The possibility naturally remains that the harvest in England, Fcance, and Germany may be very late ; in such a case the immediate demand for foreign wheat would be ' simply enormous, and the whole sentiment of the trade would undergo a complete change. That sentiment at present is that, under ordinary harvest conditions, there must come a period before Christmas when the desire to sell at such attractive prices as now obtain, will overcome the necessity to buy, and a more moderate , level of prices ensue. As we have already pointed out, however, the general exhaus- ! tkxn of stocks should lead to a continuous a*id active demand for new wheat as soon as it beoom-es available, so that tihe big discount in prices indicated by ' option ' i prioes seems to us to be hardly justified. On. the broader question of the level of j ! prioes in the coming season, as a. whole, it is of oourse obviotns that this will depend upon the outturn of the year's crops. For two years in succession the world has produced far lese wheat than has been re- ] quired to ' feed the world's bread eaters ; and the reserves left over from previous more favoured years, have beeaudrawn upon j to meet the deficiency • to such an extant L has this process of draining upon reserve | I stoeks'been carried on that it is a common and well founded belief, we think, that no , further drain upon them is possible. This ; is of course, speaking in a general way. j The result is that the world's wheat eaters j will, in the coming season, have to exist upon the coming crop. What that crop must amount to in order to meet the ordinary demands upon it is shown, to some extent by the following record of the world's wheat production in th© past seven yeai» : — ~ The Wobld's Wh?at Peoduction. Quarters. 1908 ... ... *.. „. -. 396,400,000 1907 395,175,000 1906 432,000,000 1905 ; 414,735,000 1904 392,660,000 1903 404,585,000 1902 _ 395,000,000 Average 404,360,000 The average, it will be seen, Ts 404,000,000 quarters, but the amount actually con- j erumed is far greater than this, because it is quite obvious that practically all the re- J eivn stocks have been swallowed up during j the past two yeaTS ; we estimate, therefore, ! that the actual average consumption during 1 these seven years was not far below 410,000,000 quarters, and that the world's needs for the forthcoming season will not be less than 425,000,000 quarters. The world's wheat production in 1909 bas-, there- ! fore, to exceed 425,000,000 quarters, if the j present high level of prices is to be ©aiiously^ lowered in 1909-10. It is not J easy to Torm a reliable opinion just yet but it must be confessed that the signs do i not point to ihe. total production much ex-~ ooeding the average of the past seven yeans, as shown above." The week's caDlcgram from Australia repeals slightly more activity than has obtained for some little time. This is probably in anticipation of the opening of the new season's crop, -and also on account of some demand for immediate ccneumptin. Statistics of the position there show a margin to still bs in the oountry, but the probability is that there, as well as here, this balanco is held by only a few holders. The Sydney Mail of August 18 comments as follows: — '"Both old wheat and new crop have given way something in the week. New crop is dull in London at 395, which gives a shipping value but little above 4s. Some shippers have therefore dropped their buying limits to 3s 3d in the country, though business has been done up till today at 3s Bad to 3s 9d. Growers have not been ready to sell since the fall from the opening levels, and as London is not at piesent in a strong buy'ng humour nothing is lost by waiting quietly for the present. At 39s per quarter wheat is within 3s of the lowest point touched lasfc seabon and althiuisrh London is in a depressed condition for the moment, owing to the unexpected weight of the Russian crop, the improved Home crop prospect, and the great pressure all round to realise, nothing has happened to alter the broad position previously commented upon, and that is that the production of the world, as at present estimatable, is not more than enough to fill the requirements throughout the year. For although the harvest looks as though it is going to turn in a good deal more irrairi than last year, it has to be remembered that- it has to come into a market which has consumed all its reserve stocks. It is ihis fact which gives to the position its main element of strength ; and if anything happens to the Argentine crop in the second half of the season the market limy be much improved by the time the Australian grain must be realised. Old wheat ii 1 * weaker. Sales have been made during* the week at At> ll^d for northern '

1 grain, and 5s for southern, in - odd lots. Prime southern grain in country situations , is quoted by the parcel at 5s Id, while the same ex Darling Island is worth ss. Flour business has continued dull- The association, hew-ever, yesterday reduced the quoj tetions by a further 10s per ton, making j first brands £11 10s, and second brands £11 7s od. It is anticipated that the bakers will now commence to buy. Bran has been advanced to £4 15s Pollard remains unchanged." The Australasian of August 21 has the following: — "Business in the Melbourne market has been only moderately active, but the market has shown a little more steadiness after ibe recent decline. Business has been done at 4s Bd, v hile for fairsized parcels 4s B£d is quoted. In addition to loc d business, there has been some interState inquiry. lUisines* in new wheat for j next season's delivery has been quiet, and > the market closas at 3s li£d to 4s. Flour. — • Local business is going on slowly, and the j association basis for oidinary trade parcels ' has been reduced fo £11 ss. Business has j been done for export at £10." I The Sydney paper, the Town and Counj try Journal, of August 18, says: — "Several i charters have already been engaged to carry -j j Australia n nc% wheat next summer, to the i United Kingdom. The rate "for sailers is 24s "6d per ' ion, " and for*' steamers 27s 6d. These freights are about -3s 6d higher for , Sailers, and 2s 6d higher for steamers than j .- at this date 4a«t year-" v =■; -- - I Locally, the, wheat • position remains un- , j changed from that which it occupied last week." TTolders are still firm in their prioes, ] and few go lielow 4s "5d on trucks at country stations, but buyers consider this to be sjjill too high, and are -^not purchasing. Stagnation therefore leigns in the mean- j feme, and the future of the position simply depends upon v. ho, can hold out tho j longest. Millers, on the wh6le, have kept well sihead of tne market, and can remain at ease yet for some time. The association's tariff for flour is : Sacks. £10 15s, 100's," £11; 50's, £11 10s; 25' sr £11 15s. The shipping price is £10 10s f.0.b., and the InTercargill price is -£11. The correct prioes for brai? and pollart are:— Pollard, £4- per ton, both f.o.b. and locally ; bran, &3 5e "ocolly, and £3 per ton f.o.b. In connection with the oat market three vessels— the Devon, Otaki, and Kumara — are loading at the Bluff and will finish early next week. Their cargoes were all waiting for them in store, so their arrival in no way affected the market. With their despatch the market will be clear, and it will then remain to be seen what trend it will take. At present, so far as new business is concerned, absolute inertia reigns The local level is above London parity, and though nominal forward prices for shipment a few months ahead are being offered, on present indications nothing will eventuate. In the absence of business prices remain nominally as they 1 were — narfiely, from Is B£d for B grade Sparrowbills to about le 9^d for A'a, and Is 10£ d for A grade gartons. Beerbohm's review of the London market on July 16 was as follows : — | "The imports last Week were' l27,oooqrs, against 107,400qrs the previous week r and ■ r 91,300qr3 last year, making the total im- ' ; ported since August 1, 5i079,600qr5>, against j 4,366,100qrs in the previous year. The j oat market both on the 6pot in Mark Lane and for forward shipment has been quieter this week, and prices have somewhat given way, closing, however, with more firmness. Argentina Has shipped 2000qrs of oats to London this week, thus making a total of only ol.OOOqrs in the past five weeks, which represents the present quantity afloat for London. La Plata oats, ex quay, in .Mark Lane are worth 18s 9d to 19s, whilst for July shipment 18s 6d c.i.f. was paid. Speculative sellers have been dealing freely in f.a.q. White Libaus for October to January shipment at 15s 10J>d to 16s c.i.f. London, and a fair business has resulted in new Danubians for August-September and September-October shipment at 16s 4£d to 16s 6d c.i.f.. but otherwise the c.i.f. market has ruled quiet. The past seven days' j arrival of foreign oats into London have amounted to about 75.000qr5, including 31,000qi«5 La Plata, 15,000qrs Petersburg, 5700qrs South Russian, 5300qrs Turkey, and 6500qrs Chilian. The crop reports from RuPMa and Roumania are very favourable, and in America likewise a big crop is expected. In Germany the outlook is fair to good, but in France it leaves much to desire, whilst in England the oat crop is looked upon as being the woret of the cereal crops, whilst in Russia it is expected to be the best crop of the year. Lastly, the Argentina crop, which, although not very large in size, has a very direct bearing upon prices, has started under very unfavourable conditions; sowings have been impossible over a wide area, and it is regarded as now certain that there will be a eerious decrease in the area sown." Oatmeal remains at £10 ltfe per ton, and pearl barley at £14 10s. The week lias been quiet, and prices remain much on a level with last week's quotations. New Zealand grown onions continue to show a firming influence to bring them into harmony with the imported Melbourne lines, and now range from £6 10s to £7 per ton. Poultry shows a slight firming, but eggs and butter remain at last week'e comparatively low level, the tendency being to still further ease. Potatoes show no movement. Efforts are being made to have the restriction upon exportation removed in view of the high prices ruling in Australia, and were this acquiesced in there would be a corresponding firmness in the local market, butit is felt that the effort will be-resultless, so prices will probably remain much on their present level. Detailed quotations are as follow: — Chaff. — Prime oaten chaff, £2 12s 6d to £2 15s; medium to good, £2 5s to £2 7s 6d ; light and inferior lots, £1 15s per ton and upwards (sacks extra). Potatoes. — Prime Up-to-dates, £3 10s to £3 12s 6d; medium to good, £3 2s 6d to £3 ss ; inferior, £2 per ton (sacks in). Butter.— Dairy pats, 8d to Bid ; milled, 8d to Bid ; separator pats, 9id ; bulk, 9£d ; Taieri and Peninsula pats, ll^d (id rebate for cash) ; Taieri and Peninsula bulk, Hid. Cheese. — Home shipment, sid per 1b; local lots, 6d to 6id per lb. Straw. — Prices are easier. Oaten, 27s 6d to 30s per ton ; wheaten, £1 5s pec ton (pressed ex truck). Clover hay, £2 10s to £2 15s per ton. Onions. — Melbourne, £8 to £8 10s ; Canterbury, £6 10s to £7 per ton. Egg*. — Fresh, lid to Is per dozen ; stamped, Is Id. ■ Bacon.— Rolls, B|d; Hitches, 7d; hams, B£d ; bacon pigs, Aid ; porkers, 4£d. Poultry. — Hens, 3s 6d to 4s per pair; roosters, 3s 6d to 4s; ducks, 3s to 3s 6d;

boet, 4« 6d; turkeys^ — hens sd, gobblers 8J per lb. FRUIT REPORT. There has be«n a fair demand throughout; the week for general lines. Oranges are ?ory scarce,. Raratongas especially being unobtainable. Lemons are also in short supply, and prices are firm. The arrivals during the, week 'vfere the Moeraki from Sydney with 780 cases of oranges*, man-darins,,-lemons, passions, and pines, the Moura from Auckland with 1800 cases of hananas and- 50 cases of poorman oranges; the Manuka from* Melbourne with 500 cases of apples,- lemons, and oranges,' and the Monowai from 1 Auckland with 60 .cases of poorman oranges. -■ 4 Quotations are as follow :-«- Oranges.. — Rarotongan — Market quit© bare, pi-fees "fiorhinajly 13s. to 14s; Sydney, 7s to 8s; Sevilles' (good da« mand), 6s to 6s 6d; Poorman Bushels, 6si -to. 7s. Mandarins-r-Queensland, 7s to 8s; Syd« ney— choice 7s 6d- to 8s 6d, medium 6s 6d ; repacks 9s. Lemons. — Market barely supplied. South' Australians, 10s 6d to 12s; Milduras, 12s;' Sydneys, 7s to 8s case. Bananas.— Ripe, .2id to ,2£d. Pinee^-Obeice • -Queensland • (rough), 11s to 12s; up to 14s. Anples.-rChoice 2*d to 2Jd ; medium? 13d to 2d;"Hobart, choice scarlets. 10s 9d.*to 11s 6d; Stur'mers, 7s' 6d to 9s 6d; French' Crabs,. Bs 6d; Stone Pippins, 7s 6d to Bs-,6d; logjJ dessert, _ 2id" to .3d. Pearac— jFW J offerj«g-. Yietorian, 12s. % Vegetables.— Cabbages, Is 9d to 2s per 6ack. Cauliflower, 2s Bdi to 4s per sack. Pie melons '^barely supplied), 7s 6d to 8s per cwt. Pumpkins, 4s 6d to 5s 6d per sack. „ "• Passion Fruit.— Half-gins, 6s to 7s; Packers, 7s 6d to 9s. Honey.— Choice, 4£d to 4|d per lb; 10lb tins, 3s 6d to Is; choice sections, 63 to 7s per doz«9i; medium, 3s to 4s 6d per dozen. Peanuts. — Java, 3d; Japanese, 2£d to 3d. Preserved ginger, 7£d per lb. Walnuts. — Good demand. Prime quality/ Sid to 6d. Barcelona nuts. s£d to 6£d. Brazil nuts, 7^d to B£d~ per lb. METAL MARKET. According to latest cabled advice froiu England the market there for tinplates, fencing wire, and standard iron shows a firming tendency. This is reflected also in the German and American markets. Boiled linseed oil shows an advance on lale figures, ann the local market will almost certainly firm. A new line on the lecal market is " Calarnan " American varnish, made u,j in linea .suitable for both household ond carriage use. There is a fair demand for it. : THE WOOL v SALES. Messrs Dalgety and Co. report having received the following - report from their head office,, dated London, August 28--- '" Wool : .Market very, firm; higher prices expected. Values are' rather dearer, especi- ' aJiy for merino and fine errtssbred wools. 7 ' POTATO DISEASE. SYDNEY, August 25. The importation of Victorian potatoes has been . prohibited. Certain districts in New South Wales are also declared as infected. PERTH, August 25. There are only 10 days' supply in hand, and potatoes are now quoted at £25 per ton. - COMMERCIAL CABLEGRAMS. LONDON, August 25. Wheat. — The American visible supply is 16,728,000 bushels. At the tallow auctions 947 casks were 1 offered and 909 sold. Good mutton is unchanged ; the rest advanced to 30s. August 27. The Bank of England returns show the stock of gold coin and bullion to be £38,764,000; reserve, £29,249,000; proportion of reserve to liabilities, 5.3.11. Tha notes in circulation totaJ £-29,476,000 ; public deposits, £9,787,000; other deposits, £45,248,000; Government securities, £15,366,000; and- other securit-es, £28,458,000.