THE WHEAT MARKET.

Rangitikei Advocate and Manawatu Argus, Volume XXXII, Issue 8827, 31 May 1907, Page 2

THE WHEAT MARKET.

Flour Again Advanced. (Per Press Association 1 Dunedin, May 29. The wheat market has been in a high state of excitement to-day, and millers are eager buyers at present high rates says the Otago Daily Times. The sale of a large line of milling wheat (mixed sorts) is reported at 4s Gd f.o b. Lyttelton, this representing the top price paid up to the present. Other sales include lines of wheat at 4s 3d Itakaia, 4s 5d Mcsgiel, and 4s Gd ex store Dunedin. A sale of 600 sacks fool seed is reported at 4s, ex store Lyttelton. All this affords indication of the strength of the market, and shows that still higher prices are anticipated. Already prospect of a 3s .vnc.-t ui.uuet is being actively canvassed, whilst doubt is expressed as to whether even then the top will have been reached. The New Zealand Flourmiilors’ Association to-day decided upon a further advance ot I.os per ton in the price of flour. The revised tariff accordingly stands — sacks, £lO 5s ; 100’s, £lO 10s; 50’s, £lO 15s ; and 25’s, £ll. The shipping price is now £lO f.0.b., and the Invercargill price £lO 10s.

The price of bran has also been advanced 5s per ton, and quotations now stand—£4 10s per lon for local orders, and £4 5s f.o.b. for shipment. Mills Closing Down. The rapid advance in the price of wheat has caught many of the millers napping. They aver that with wheat costing thorn 4s Gd at the mill door they cannot afford to grist even at the rapid advance in flour, the margin to cover cost of manufacture being only something like Cs per ton. Consequently already one mill has closed down, and it is quite on the cards that three or tour others may shortly follow, leaving the trade in the hands of those fortunate millers who hold stocks of wheat, and consequently are able to execute orders.

Dunedin, May 30.

This morning, in tho absence of further news from London, the local wheat market was somewhat calmer in tone but prices were as firm as ever. An offer of 4s Gd f.0.b., s.i, from an Auckland buyer was refused by a Dunedin holder for a considerable line of wheat, and inquiries by wire in all markets in North Otago and Canterbury elicited the fact that very few holders were willing to put a price ou their grain, preferring to await market developments. For a few lots on offer 4s Gd on trucks was the price asked, and sales are reported as this figure.

This afternoon, however, excitement recommenced upon receipt of instructions from Christchurch headquarters of the N.Z. Flourmillcrs’ Association, to make a further advance of £1 per ton on the price of flour, this representing a total advance of £2 10s per ton within a little over a fortnight. On Tuesday, 14th inst., flour was advanced from £8 15s to £9 5s per ton ; on the following Thursday, 16th inst., another 10s rise was established, making the price £9 15s ; yesterday yet another 10s per ton was dapped on the price, raising it to 4110 ss, and with today’s ill rise added the price stands at £ll ss. The equivalent advance 'in wheat for same period is Is per bushel, from 3s Gd on trucks to 4s Gd.

Local millers were taken by surprise by to-day’s advance in flour, but they point out that it amounts to a measure of selfdefence. Already millers -who do not hold wheat are declining orders. The local branch of the Association has received official notification from at least two flour-milling firms of their intention to close down for tho present, and it is fully expected that several other mills will follow suit during the next few days.

Of course this latest rise in flour must carry with it another rise in bread, and in all probability bakers will fix.the price at 7d the 41b loaf. The Millers’ Association has also advanced the price of pollard, which now stands at £5 10s per ton both for local and shipping orders, an advance of 10s. Possibly out of sympathy with the rise in wheat there has also been a move in oats. Every lino of oats offering on the market was picked up yesterday by a speculator at a slight advance on current q u otations, and to-day scarcely any oats are to be purchased-To-day’s quotation on trucks at Gore is firm at 2s 8d per bushel, an advance of fully 2d per bushel on last week’s rates.

Flour Furlher Increased £! TonBread Sevenpence 4ib Loaf. Cnnisrciimicii, May 30. Wheat is now up to 4s 6d, and an increase of £1 per ton for flour was made to-day, bringing the price to £ll. The bakers state that the price for bread will in consequence be advanced another $d per 41b loaf, making the price 7d. Auckland, May 31. .Flour has advanced in Auckland to £ll 10S. It is understood tho price of a four pound loaf may advance to 71 d.