A “SLUMP” IN TEA.

Taihape Daily Times, Volume XI, Issue 3496, 26 May 1920, Page 5

A “SLUMP” IN TEA.

POSITION IN CHRISTCHURCH. STOREKEEPERS- ALARMED. CHRISTCHURCH. May 25. ,-. A slump amounting almost to a I panic, has occurred in the tea market dining the past week. For some time prices were firm, with every indication of a further rise, and this led to the placing of heavy orders with the local wholesale merchants. Now that a slump has occurred, however, many of | the local storekeepers are endeavour- j 1 lug to cancel their orders, thus leav- | ing the wholesaler to bear the Loss on j the transaction. Discussing the matter, a local mer-'j chant expressed the opinion that the j market would firm again in the near \ future. In support of this he quoted ; extracts from recent advice received j from America, which stated that there ! i had been much speculation among tea j men as to the effect, the lifting of the ' Allied trade blockade against soviet- j Russia would have on stocks and j prices, and which primary markets I would be directly affected. It was' I generally agreed among leading im- ! porters that prices would firm, and j that for a time supplies would be | scant. 1 AUCKLAND MERCHANTS’ VIEWS. ! “The whole position is that we are : all pretty heavy holders of stocks/’ ! said an Auckland tea merchant, when ■ interviewed last evening. “We have a class of tea that cannot „be pnccur- | ed to-day. The rains set in .in Ceylon I fairly early this vear... and .jthere t . n are i large supplies in Colombo, the quality of which is absolutely inferior to local supplies. The price Is influenced more by quality than by the quantity on the market. It will be July before 1 the quality of the fresh supplies im- | proves again and by that, time we can I look for higher prices. “Another factor which will influence the price/’ continued the merchant, “will be the demand for further supplies from Loudon. At the present time there atre fairly heavy stocks held and at the end of last year thejre were 226,000,000 pounds weight of all sorts held in Britain.”