BRITISH TRADE

Southland Times, Issue 20080, 18 January 1927, Page 5

BRITISH TRADE

BUSINESS BUOYANT STOCK EXCHANGE BAROMETER DOMINION LOAN ISSUES FIRMING (By Telegraph—Press Assn.—Copyright.) London, January 15. The Stock Exchange commenced the year in a most cheerful mood with an active demand for all classes of investment securities and a fair amount of business is passing in the industrial section. This buoyancy is mainly due to the easy monetary conditions and favourable reception of the conversion loan, dealings in which will commence on Thursday. It is generally expected that the scrip will reach a substantial premium for according to the newspaper Statist, the market estimates of total applications range from £150,000,000 to £200,000,000. Gilt-edged stocks have all hardened. Colonials noticeably are firm. Even the last New South Wales issue, which was quoted at three per cent, discount early in November, has now recovered and is only at 1} per cent, discount. DEMAND FOR APPLES. Apple importers are taking a hopeful view of the Australian outlook. One of the leading city firms says the season should be successful and growers should be able to retrieve some of the losses incurred last year. This view is based on the following reasons: (1) The reduced quantity from the mainland and from Tasmania; (2) Severe frosts have damaged the Spanish orange crop for the second year in succession; (3) The greatly improved industrial position with no likelihood of a recurrence of serious labour troubles for some time; (4) The health authorities and newspapers have dropped the arsenic scare; and (5) Reduction in freights. Against these favourable factors it must be borne in mind that the American crop is large and bound to extend into the Australian season. So far there is no news of any English importers making forward purchases which is not surprising when one recalls how badly bitten some of them have been in recent years but Continental buyers-are already busy and several purchases h&ve been made for Scandinavia at high prices—West Australian Cleopatras at 14/6, c.i.f. Dunns 14/-; best varieties Tasmanians 17/6, f.o.b. The Germans are also operating at the same prices which are considerably above the figure which English buyers would give. DRIED FRUITS. A feature of the dried fruit trade since the turn of the year has been the increasing demand for Australian currants. This is largely due to the firmness of the market in Greece, where prices have been steadily rising till now Greek shippers are asking 3/- per hundredweight above London spot quotations; consequently buyers have turned attention to Australians and large business has been done at prices ranging from 34/- to 42/-. Sultanas are only meeting with moderate inquiry at 56/- to 74/-, but there are signs of improving demand. GROWTH OF AUSTRALIAN WINE TRADE. The continuous steady growth of the Australian wine trade is once more one of the most satisfactory factors in the Empire’s trade. The year’s statistics show that imports of wine from Australia in 1926 amounted to 1,755,000 gallons compared with 1,028,000 gallons in 1925 and 824,000 in 1924. These figures are remarkable as the imports of foreign wines in the same years were 15,962,000, 16,474,000 and 16,545,000 respectively. British consumption of Australian wines shows an even more marked increase in quantities in the same years being 1,415,000, 782,000, and 611,000. The total value of Australian imports for 1926 is returned as £366,436. WOOL PROSPECTS GOOD. Prospects for the wool sales opening on Tuesday appear good and traders generally are expecting that the best prices of the last series will be maintained. The newspaper Economist’s Bradford correspondent says the belief is general that business will improve during the current year. Though at the moment the demand is small the position may become clearer as London auctions proceed. There is a widespread hope that wool values will remain steady during the remainder of the season as this would do much to stimulate the demand for semi and fully manufactured goods but if foreign competition in material markets forces up prices much beyond the current level it will almost certainly put a stop to business. IMPROVED OUTLOOK FOR BUTTER. The butter position remains satisfactory for though business has been quiet, during the last few weeks there are indications that buyers will shortly need to replenish stocks and in view of the small visible supplies from Australia it appears likely that the movement of prices will be upward. A satisfactory feature of the trade is that underpriced butters have been selling well lately, considerable quantities of these having been sold to the Continent. Another good point has been the United States’ and Canada’s demand for best grades which has materially assisted in maintaining prices.— A. and N.Z,