THE BREADSTUFFS AND PRODUCE MARKETS.

Otago Witness, Issue 2896, 15 September 1909, Page 9

THE BREADSTUFFS AND PRODUCE MARKETS.

""" , Friday. * j Last week's London market closed- with cargoes oft' the coast being quoted at an average of from 41s ,9d to 42s per quarter. This week ''indicates a practical continuance of that position, with sales at from 41s 6d upwards. Forward quotations for the new crop, January and February ship- I ment, show a little easing, 37s 6d being ' the figure now obtaining. The market has gradually been working to find the level of the new crop, and though it is always open to revision, the opinion that it will continue in the neighbourhood of its present position has some strength in it. For nearly a month now. the prices have not fluctuated to any considerable extent, this being accounted for by the reluctance of buyers to operate on an easing market and the pressure of holders of new crop to sell and benefit by the good prices. Notwithstanding these two factors, it is a testimony to the inherent strength of the market from a statisical point of view that it has dropped so comparatively slightly as it has. ( There has in no sense been a collapse of the market, but simply a natural easing in the face of heavier supplies, thus indicating that the previous price 3 were in no sense exorbitant, but simply the level necessarily attained to find the balance between buyers and sellers. With regard to the probable future of the market, the extract we make from Beer- , bofam this week is particularly interesting-, gfiying- as it does ihe statistical position for August 1 over the world, and a comparison of the position then obtaining with past seasons at similar date. Estimates of the bulk of the present and forthcoming worlds' harvest are pot 'yet sufficiently advanced for presentation, * but «o far as preliminary opinions based on such data, as is available' permit, it seems likely that, despite the increased area s«vn, consumption will not be overtaken by production, j " Beerbohm," under date July 30, writes : — - I " The principal feature of the wheat | market this week has been the anxiety and evident pressure to sell new wheat, { wherever it has been reaped, in order ' to take advantage of a high price such as farmers have not witnessed at the begin- < ing of a season for a good many years past. The natural result has been to de- < press prices for distant delivery rather con- | siderably. - Near wheat, however, is slow j to give way in price, being evidently in j insufficient Bupply, and unless the weather . soon changes for the better the demand for foreign wheat on a large scale will continue for a far longer period than is at present expected. The harvest in this country, in ' Germany, and in the most important wheatgrowing sections of France, if already a fortnight later than last year, and sorely needs sunshine and dry weather during the next two or three weeks, otherwise the position might easily become serious. With such uncertainty, the market is naturally in a hesitating _ state, a band-to-mouth policy being adopted by buyers generally. The difficult' period be«*«en the old and new crops is now being £*«Bed through, the general feeling being tttfe the general desire to sell wheat on the part of farmers, under., ordinary weather conditions, must bring prices' down to * more moderate level. The process of finding the new season's level lias, indeed, been going on for the last fortnight, during which price* for September-October delivery have declined 2s to 3s per quarter. We do not think it likely that the autumn supplier will be oppressively large, but they will doubtless be large enough to warrant a more moderate price than the piesent unusually high spot values.. Speaking of the new 'season's price "level as a whole, however, we are not disposed to believe or to admit that supplies will be large enough to warrant any serious falling-off from the high level reached in the past season. It may be pretty well taken for granted now that the worlds' reserve stocks will bear no further drawing upon, so that the coming crop has Jfco meet all requirements;, that is to say, as we pointed out two weeks ago, the world's' production of 1909-10 will have to reaoh a total of about 425 million quarters if the worlds' requirements are to be met with iase. We shall shortly be issuing our usual preliminary estimate of the world's crop, but in the meantime we can say that there are no indications of the total much exceeding 400 million quarters, which would mean that for three years in succession the world" ''has produced less wheat thap its normal requirements, the average For these three years being 397>J million quarters, whereas in the three previous years the. average was 413 million quarters. It must be remembered that the worlds' consumption increases yearly by probably about 4.000,000qr5., so than unless there is a continual increase in the amount produced, the demand soon overlaps the supply, as has been the case during the p#st two yeaft. and as seems likely to occur for still another season, although this will not be realised until another Argentina and another Indian crop has been reaped. In the meantime there nan be no doubt about .the paucity on old wheat -locks; ihia is shown by the fact that, in spite

of the most attractive prices known for a good many years, the world's visible supply is the smallest on record, even smaller than during the Leiter period, and amounting to only about one-third of the total held in yeara of abundance. The figures for August 1 are only approximate so far, but it is interesting to compare the totals for Europe and America since 1893, as follows : — The Wobld's Visible "Wheat Supply on August 1 American

The decrease in the total since July 1 is about 1,900,000 quarters, as compared with a decrease of 880,000 quarters in the corresponding month last year. As we have frequently insisted in these columns, it is not only the ' visible * supplies which are unprecedentedly low, but even more important is the obviously serious paucity of the world's 'invisible' supplies. A» far aa the United Kingdom is concerned tfce «ew season also starts with an unusually small total of foreign wheat 'visible.' This will be seen from the following comparison for August 1 for the past 10 years: — Port Stocks Afloat U.K.

From Autralian sources mail advice is to the effect that shipping will be indulged in to a considerable extent during .the approaching fortnight, thus further materially reducing the balance in hand of the old* crop. South Australia is expected to exhaust her surplus very shortly. The Australasian of September 4 says: " The Melbourne market has become steadier at the level of prices to which it has lately declined, and there has been a better inquiry, partly from other States. Exports to be made from Victoria to oversea destinations during the next few weeks are estimated at nearly three-quarters of a million bushels, while from South Australia between a million and a million and a-quar-ter bushels ara to be shipped. The statistical position will thus undergo a material modification by the beginning of October, , and it is doubtful whether South Australia will be able to supply other States after that time. The Melbourne millers are buying from hand to mouth, as the local demand for flour continues rather slow. Sales have been made at 4s 6d to 4s 6£d, and the market closes steady. Business in new wheat for next season's delivery is dull, 3s lid to 3s 11 id being quoted. " Flour. — The local demand continues quiet. The association basi" for ordinary trade parcels is £11 delivered. A moderate business has been done for export at relatively low prices." The Sydney Mail, discussing the future, says that growers " will probably consult their best interests by holding until a later period of the season, as in the present condition of the market any freedom in selling would send forward prices lower. Today new crop is nominally quoted at 3s lid, but the tendency on shippers' part is to reduce these limits. Flour remains unchanged. The association is keeping the nominal quotation at £11 10s for best brands; but no business is going through at that figure." No business is passing in the local market, and prices remain nominally at last week's rates. It is understood that at the last meeting of the New Zealand Flourmillers' Association the members still in the combine agreed to a continuance on the present basis for another six months. The association's tariff for flour is: — Sacks, £10 15s; 100's, £11; 50's, £11 10s; 25's, £11 15s. The shipping price is £10 ; 10s f.0.b., and the Invercargill price is £11. Pollard, £4 per ton, both f.o.b. and locally; bran, £3 5s locally, and £3 per ton , f.o.b. i Oats continue stagnant, no business passing in the meantime. Nominal prices rei main at about Is lOd for A grade Gartons. ! Is 9d for B's, and about Is B£d for B ! grade sparrowbills — all f.0.b., s.i. Oatmeal stands at £10 10s per ton, and pearl barley at £14 10s. 1 Butter and Cheese in London. — It is not unreasonable to anticipate that with the publicity given to the matter a distinct improvement will be manifested this season with regard to the exportation of butter containing superfluous -moisture. It >a regrettable that tihe difficulty occasioned by an attempt to work up to the legal limit should ever have occurred, as colonial butters will now be handicapped in the London markets through the prejudice conceived in the mind of the consumer in their rega-rd. Reports from London indicate good prospects for the incoming season so far as the relation between 6upply and demand is conceited. The annual report of the New Zealand Loan and Mercantile Agency Company (Ltd.), -espectin.sr Australasian dairy produce on the London market, stated that " the continual decline in prices during the year was due to the increased supplies and the abnormally re-sfrricted demand. As to choose, the movements for this article were in direct opposition to that for butter, (prices almoat uninterruptedly advanoing, Canadian, which opened at 57s to 59s par cwt touching 70s towards the close of the season, while up to 68s per cwt. was realised for New Zealand. Generally 6peaking, the quality of Australian butter was not up to the standard of former years, though many of the noted brands maintained their reputations for all-round excellence. In the case of New Zealand, the quality in many instances might have been better, the defect of ' fishincss ' being widely manifest. So far as we can judge," the firm states, there seems good reason to anticipate that the new season's butter and cheese

will arrive to good markets, in view of the fact that there are no accumulations of old stock, while the quantities arriving, week by week, Jrom the various centres are going into consumption as soon aa available." Locally, the market -is conspicuous for notihinig so much as a decidedly quiet tone. Late prices are maintained in all lines. A slight change is recorded in connection with onions. Melbourne shipment has firmed to about £9 103 to £10 per ton. while a shipment of Californian to hand : is offering for consumption at £14 per ton. Some lines of Japanese to arrive are offered at lls per cwt. 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 T7p-to-Dates, £3 10s to £3 12s 6d; medium to good, £3 2s 6d to ; £3 ss; inferior, £2 per ton (sacks in). i Butter.— Dairy pats, 7±d to 8d ; milled, 7£d to 8d; separator pate, 9£d; bulk, 9£d; Taieri end Peninsula pats, lljd (id rebate for cash) ; Taieri and Peninsula bulk, Hid. Cheese. — Home shipment, s^d per lb ; local lots, 6d to 6*d pea- lb. Straw.— Oaten, 27s 6d to 3Qs per ton ; wfaea/teri, £1 5s per ton (pressed ex truck). Clover bay, £2 10s to £2 15s per ton. Onions,— Melbourne, £9 10s to £10; Canterbury, about done; a line of Californian to hand, and these are being offered at £14. JSggs.— Fresh, lid to ll£d per dozen; stamped, Is. Bacon. — Bolls, Bid ; flitches, 7-d ; hams, B£d; bacon pigs. *jd ; por-kers, 4^d. Poultry. — Hems, 3s fed to 4s per pair ; roosters, 3s 6d to 4s ; ducks, 3s to 3s 6d ; best, 4s 6d; turkeys — hens sd, gobblers 8d per lb. FRUIT REPORT. The general quietness extends to this market, all lines standing at last week's level. The shipment of Rarotongan oranges which arrived last week is being distributed at from 10s to 12s per case (repacks). The arrivals during- the week were : — The Warrimoo, from Sydney, witih 900 cases of Syd-ney frudfc and 1000 cases of Rarotongswi fruit transhipped from die Manapouri ; the Moura, from Auckland, with 100 cases of Poorman oranges and lemons and 1675 oases of Raroton^an fruit, the balance of the Manapouri'e shipment ; and the Moaraki, from Melbourne and Hobart, with 900 cases of apples, oranges, pines, and lemons. Quotations are as follow : — Oranges. — Rarotongan : Repacks, 10s to 12s; Sydney, 7s to 8s; Sevilles, 5s to 63; Pooxman Bushels, 6s to 7s. Mandarins. — Queensland, 7s to 8s; Sydney — 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; green Raroton<gan, 3s od to 56. Pines.— Cfaoice Queensland (rough), Us to 12s; Queens, up to 14s. Apples. — Choice cookers — Canterbury French crab, 8s to 9s ; Stunner Pippin, 8s ; Hobart, choice scarlets, 11s to 12s 6d; Stunners, 7s 6d to 10s 6d ; French Crabs, 8s 6d; Stone Pippins, 7s 6d to 8s 6d; local dessert, 2±d to 3d. . Pears. — Few offering. Victorian, 12s 6d. Vegetables.— Cabbages (scarce), 2s 6d to 3s ; cauliflowers, 2s 8d to 4s per sack (plentiful). Passion Fruit. — Half -gins, 6s to 7s; Packers, 7s 6d to 9s. Honey.— Choice, 4£d to 4fd per lb; 101b tins, 3s 6d to 4s; choice sections, 6s to 7s per dozen ; medium, 3s to 4s 6d per dozen. Peanuts. — Java, 13d ; Japanese* 2£d to 3d. Preserved ginger. 7£d per lb. Walnuts. — Good demand. Prime quality, s£d to 6d. Barcelona nuts, s£d to 6£d. Brazil nuts, 7£d to B±d per lb. IMPORT MARKET. Merchants are speaking in a more optimistic tone, as trade is looking more active than for some little time past. It is anticipated that owing to the very good year experienced so far for exports more confidence will be shown in the direction of importing and distribution. Liverpool salt is becoming very short, but a supply is now almost due in the Clara, which left Home in April last. The market is short of almost all descriptions of dried fruits. Evaporated apricots have advanced about 7s per cwt, and owing to damage to the Californian crop it is expected that the market will go even higher. Figs, prunes, and sultanas have all advanced lately in price. Our Comm-ircial Summary, published in another portion of this issue, erives full and detailed information as to the prices ruling for all lines.

L 909 L 906 L 907 L 906 L 905 L 904 L 903 L 902 L9Ol L9OO • • 1 • « August 1. Qrs. 1,250,000 2,350,000 3,000,090 2,600,009 2,500,000 2,300,000 1,850,000 1,675,000 2,220,000 2,200,000 August 1 Qrs. 2,000,000 1,750,000 2,850,000 2,500.000 2,390,000 3,195,000 2.065,000 1,980,003 2.700,000 2,336,000 Total. Qrs. 3,250,001 4,100,00 5,3»0,00i 5,100,001 4,890.001 6,495,001 3,915,001 3,655,00; 4,900,001 4,535,001

and Bnghsh European. Canadian. Total. Average Qrs. Qrs. Qre. Price. L 909 .. 5,603,000 1,503,000 7,103,030 44s L9OB .. 5,850,000 3,10Q,C00 8 950,030 31s 6d 1907 .. 7,420,000 7,950,000 15,370,000 33s L9OB .. 7,110,000 5,900 000 12,310,030 30s 6d L 905 .. 8,160,003 2,600,000 10,760,000 32b 3d L 904 .. 8,103,000 2,700,000 10,805,000 28s 1903 . 5,930,003 2,880,000 8,810,000 29« 902 .. 5,255,000 4,225,000 9,480,000 31s fid 1901 .. 7,960,000 5,600,000 13,560,000 27a 6d 1900 .. 7,310,000 8,270,000 15,580,000 28a lOd L 899 .. 7,465,000 6,670,000 14,155,000 26s 2d 1898 .. 5,990,030 1,800,000 7,790,003 36s lid L 897 .. 4,383,030 3,100,000 7,483,000 288 103 L 896 „ 5,045,000 7,540,000 12,565,003 23b 8d L 895 .- 9,615,000 6,800,000 16,115,000 24s 2d L 894 .. 5L355;000 9,850,000 18,705,000 24s 4d L 893 .. 10,590,000 9,140,000 19,670,000 26s 2d