MEAT AND WOOL

Shannon News, 13 March 1925, Page 4

MEAT AND WOOL

Season Of High Prices. INSTABILITY OP HOME MARKET.

Although there are indications of instability on the Home markets, the season in meat and wool from the point of view of the producer haa been the best ever experienced. Sheep and lambs have maintained h.gn rates; wool has soared to a Phenomenal altitude; and even beef which the New Zealand farmer had in man> cases given up as irretrievable, hau felt the benefit of a temporary world shortage and proved a profitable sideline to the sheep-breeder. In reviewing the season and its effect on the world's markets, a prominent exporter and authority upon tne whole position, gave a reporter some enlightening particulars yesterday. Prom the opening: ot the works, lamb remained at 12d per lb. on hooks," equal to 32/6 to 37/6 per head for lambs from this d-strict. Several instances were reported where first drafts have netted 40/- per head and over, and only a few weeks ago a line of 2600 lambs in the Wairarapa had averaged 43/- per head. These p,rice s were about 2d per lb. or, say, 5/. to 8/- per head higher than tne previous year and from £1 to £l/5/. higher than three years ago. Wethers and ewes had also paiticipated -n tne, increased values. Wvthers had remained steady at 40/- to 42/-. although they were now about 2/- per head 'ower, and an unusual condition was that wethers in the North Island were higher than in the South Island. Ewes had sold at 27/6 to 32/6 and even 35/.. . Wool Prices Phenomenal. "In the early sales before Christmas," he continued, "wool touched prices hardly dreamed of hitherto. Romney wool from this district sold at 2/- per lb. and over and even locks brought 13d and 14d per lb. Compare these prices with those ruling three years ago, when it was difficult to sell the best of our Romney woo; at 6d per lb. Those growers who were fortunate enough to get their wool into the early sales realised phenomenal prices, bul. since the New Year values have steadily declined and for most descriptions they are now about «d per lb. lower than December prices, but even at this reduction the return is a wonderfully good one, and if farmers could rely on prices keeping at to-day's values, which ap. pears probable for a time, they are on a good wicket. A Valuable Sideline. "Beef is, also feeling the benefit of the world?s temporary shortage or meat and the diversion of a large percentage of Argentine shipments to European markets —Genoa, Havre, Antwerp, Hamburg, etc. Prices for ox beef have remained steady at to 30/- per hundred pounds, or. say. £lO to £l2 per head. As a considerable number of cattle, whatever their value is, must always be kept on most. North Island farms, in order to keep the country In order foi sheep, anv return from cattle is in tne nature of a side-line. Therefore the higher return is all the more wel. come and if this increased price resuits in more cattle being bred, tner. it will mean that in most places more sheep can also be carried.

Rough Weather For 1/amDing. "Unfortunately the season has not been a good one for fattening lambs —too much wet in December and rough and unsettled conditions since and not nearly enough sunshine ana dry fofifl. The lambing percentages in the In-orth •Island, notwithstanding the remarkably fine wint + er , n for nn e n we fI S " showed a drop of about 500,000 as compared with the previous season, although in the South Island the num. bers increased by 260,000, allowing to the very high price of wool, and consequently high values and shortage of store sheep, many farmprs have kept their ewe lambs for breeding! The result of these various conditions is that the number of lamb s

killed since the opening of the season? up to the middle of February W 426 000 less than the corresponding "Id of the previous season, or <* d?opof2ope?cent. The South Island shSws the greatest decline th e drop there being about 37 per cent. However, the rape crops have been fo-riy Jood and large numbers of lambs are now being sent to the works in botn Xids. and given a month or two o niodorutelv ftne weather a good aeai of the shortage will probably be made up and the final returns may not be very much less than last year. Forward Buyers. "In turning now to the conditions at the consuming end, where London is, and probably always will be, our chief market, forward buyers for lamb would not operate at the very high prices asked by the New Zealand agents, consequently hardly any c.i.t. contracts could be made and all the season's shipments had to go forward on consignment, which creates a very dangerous condition. Fortunately, most of the meat, was in strong hands, and farmers' consignments were consp s cuons by their absence, consequently there was less risk of weak sellers, resulting in the market falling below it a true value, as we saw last year and the previous two or three vears. Although piices have declined from 13d to about 12d c.i.f., the shortage in supplies may prevent any further serious decline, but this all depends on how quickly the meat goes into consumption and high pnce a naturally do not stimulate a good demSinAil Is Not Well With Buyers. The position of the markets on the other side of the world is made prefectly clear in communications which have recnetly been received from England by the exporter, and which are of more than ordinary interest to the grower of meat and wool throughout the Dominion. "Since the dawn of 1925," one re. port states, "it must have been apparent to any but the blindly optimistic that all was not well among the buying section of the trade on this side of "the world, and the more or less conflicting reports emanating from time to time from the primary markets have done nothing to allay tne feeling of uneasiness that has been gathering here. Buyers are looking for/ a rather lower and more stable basis of values in order that a narrower margin should pertain in the disparity between the raw material and its products resulting, it is hoped, in a greater volume of business. The impression left in our minds from opening sales was that buyers 00. viously do not know where they are and this state of affairs showed itself in the restrained and hesitating way in which they bid for certain classes of wool. Since then we do not note i any improvement in values, but we believe that confidence is hemg slowly restored. It has been obvious that that Merinos for a long 'time past have been on a plane altogether beyond the attainment of all but a few and with the quantities available consisting largely of this type of wool, it is not surprising the withdrawals have been verv heavy, owing to limits noc being reached. Fortunately, New Zealand is mainly represented by wools of a lower class, which still command attention and may be said to be saleable when not limited undulv high. Bradford has been forced more or less to buy owing to the strength of Continental competition, but. in the "present series of sales thib

latter factor appears to be wearing itself out, omng principally, to the absence of the necessary wherewithal to pay for supplies. Accordingly, this

has given Bradford buyers the opportunity to resist the high prices by the simple expedient of withholding their competition unless at a reduced and revised basis of values." Bombshell on the Market.

"A bombshell to traders," is how a Home authority, dealing- in New Zealand meat describes the arrival of Russian sheep, on the market in London. "We have run into an awkward period at Smithfield," he stated, "and there is a lack of confidence, practi. cally no buyers ahead and aithougn prices appear firm on the spot, the undercurent is far from good. We think that the actual wholesale price for sheep this week is down fully lid. This may be temporary, but we do not think so as the Plate shipments are now arriving regularly. For some months the Plate companies have been buying New Zealand ewes as'they have not had sufficient supplies 01 their own. Their methods are to clear up each vessel prior to the arrival of another, if possible, and we note a weakness already in this direction, as the demand is certainly not good and we cannot see any of these firms accumulating stocks, however good the position might appear, for later on in the year. Another very important item has been the arrival of the s.s. "Doricstair" from Vladivostock carrying between 80,000 and 90,000 Manchurian sheep. As the bulk so far are wethers, it has immediately had its effect on the sale ot New Zealand ewes. The arrival or this vessel was like a bombshell to traders generally and now, having got nervous, there is talk of there being another vessel to arrive in a month's time. At ordinary times they would be very difficult to dispose of, but having come on to a short market they are making 8d per lb. and for the moment they have rather upset the sale of New Zealand ewes."