THE PRICE OF STOCK.

Taihape Daily Times, 13 September 1919, Page 3

THE PRICE OF STOCK.

A DECLINE UOSSIBLE.

LITTLE FORVVARD PURCHASING.

With ‘the new season’s flocks now coming into being and the necessity for nla»king plans ahead for their accommodation, a question which is naturally exercising the minds of pastoralists is as to the eventual ‘trend of values. To attempt to speak with eertainty concerning the future prospects (says the CllristcTiul'cll Sun) is generally unwise, but at p»l'esen't there are certain indications which, to dismiss lightly would be jfi’st as foolish. Indeed, it would seem that a. -section of fill‘lllCl'S’ and a. scctToll'Whl'éh incidentally studies market conditions with extreme closeness, has not a. great mnonnt of confidence in what will occur early n'e.\:t year when §fsi‘e stock begin to change hands.’

"Their attitude ‘is deduced from a falling-ofl? this season -of purchases of lambs for :t‘ol‘wal'«l deli-\7ery, which is pronounced by all accounts. And coincident. with 'tllis“reluet.a.nce to pay on an average of 20/ to 23/ per head for February delivery lambs, it would also seem that there is less land being pl‘(3l)ill'(‘d for rape and green feed intended for the fattening of these lambs. No doui3‘f -a. -part of the hesitation to pay ruling firices for forward <lelivm'y lambs is due to climatic reasons. ’l‘herc is certainly insufficient moisture in the ground to face the summer with confidence. The fact that in nl-any localities the fvells are below the level usual at ‘this period of the year shows that. lack of water in the suh—soil. The presence, also, -of the Ronnie): cross in so many lambs is not a. thing which is assisting sales, as the lambe ars looked upon with some dis_favour by “fattening” farmers, as they do not respond so well when removed to the new pasture. Indeed, business on the Peninsula, where the bulk «of the t‘-orward purchasing is done, this season lies been practically confined to recognised standard lines.

But possibly their main fear is as to the prospects regarcliiig prices to be paid t'or fat stock. The factories have concluded a‘ phenomenally successful year, not only in their live-stock buying operations, but also in the sale of byproducts ‘ltems written off have come into undisclosed. profits, and ‘in cases shares have been “watered” by ‘creating fresh issues of stock to share. holders from these. Naturally, this has {led toaconsiderable changing of hands ‘of shares, Now a good proportion of :tho, shares held in the various companies have been bought ‘at enhanced. prices based on the prosperous times which the exporters have experienced. Obviously it is expecting too much to anticipating that the wal'—tinle prosperity’ will continue indefinitely, but it is just as reasonable to suppose ‘that profits coinnu_msnratc with the present high level of sll'.u'es' will be looked for. So “l1.ar(l” trading, and a constant endeavour by the. companies to keep fat stock prices shown is expected b-y many t’armers. The fact that a great proportion of last season's meat will be in the stores when the new season Opens may later on assist in bearing clown the fat stock market, just as a space shortage was taken advantage of in this respect early in the War, and again in the closing months of last season. There certainly seems some justification for the fea’r that the store market may weaken during January or FL“lJl'liEl].'_V'. ‘Especially is this so if there is then. any decided North Island competition.