TRADE REVIEW.

Taranaki Daily News, 7 March 1921, Page 5

TRADE REVIEW.

TURN FOR THE BETTER. OPTIMISTIC FEELING PREVALENT.. WHOLESALE PRICES EASIER. By Telegraph.—Press Asstt.— Copyright. Received March 6, 5.5 p.m. ’London, March 5. After a fortnight of dullness and depression the Stock Exchange has taken a decided turn for the better, with an improved sentiment not only in investment sections but also in industrial and speculative groups. The amount of business done shows little increase, but an optimistic feeling is prevalent. The chief cause is the Premier’s masterly presentation of the Allies’ case regarding reparation. The announcement of Sir Eric Geddes’ retirement from the Ministry of Transport and the probable end of Government control of railways also had a stimulating effect on the railway section. The Australian exchange position is gradually improving, as wheat and other products are being shipped, but so far bankers are unable to increase traders’ facilities to any great extent. The trouble is the accumulation of the past five months, and till that is removed bankers cannot Ijave that freedom of action necessary to put trade on anything like its old basis. The movements in the wholesale prices of commodities during February .were universally downward. The average level of twenty food commodities and twenty raw materials showed a decline of 9J per cent compared with January and 43 per cent compared with February, 1920. American cotton, crossbred wool, jute, rubber, and tin are all bad and are all below their pre-war level. BUTTER AND CHEESE. I Butter supplies continue large and stocks are accumulating, while prices are tending lower all round. Danish butter has been reduced to 216 f.o.b. The Government’s last distribution consisted of eighty per cent unsalted Argentine? which consumers do hot like, consequently it was mostly unsold. Although butter is very plentiful the Food Ministry is not reducing the price as was confidently expected. It is understood the Ministry is anxious to reduce but the Treasury refuses sanction, as it entails considerable loss. Cheese is decidedly firmer. New Zealand white is quoted at 147 s to 148 s, and colored at 15*83 to 160 s. No fresh New Zealand arrivals are due till the end of the month, and there are hopes that present values will be maintained till the end of April. The Government’s final distribution of imported cheese next Wednesday will clear the Government’s New Zealand stocks. Importers are well satisfied. Surrey’s Australian is selling at white l L l*6s to 148 s and colored 152 s to 1565. The tin market is depressed, following the Malayan unpegging. The East shows no anxiety to sell at the present level, but the prospect of a free market in future has caused premium Straits to decline to £lO. Spelter is steady owing to a feeling that the suggested export duty will cause a reduction in shipments from Germany, which is the principal source of supply. Present business with consumers is extremely restricted, but there is a slight improvement in the demand. THE WOOL MARKET. The wool sales just closing demonstrated the weakness of the demand and the dullness in the consuming centres, although present values are on so reasonable a basis as to encourage operations. American activity has temporarily ceased owing to uncertainty regarding the tariff legislation. Iv is possible it may have retrospective operation, but when the situation becomes clear a steadier demand for good wools in that quarter seems likely. Continental demands have been the most stable factor of the sales. Germany and France are both operating increasinglv, and Germany is once more making’her influence felt on the raw material markets, which is an important step towards more normal conditions. Large stocks and the financial stringency are hampering the wool trade in Great Britain, and retailers are holding out for higher prices biased on the boom period rather than the present cost of replacement. Until values at the retail end of the trade are adjusted there cannot be a general revival of business. The existing stock of wool must be cleared and the costs of production reduced before an increased turnover is obtainable. Old stocks do not present the same difficulty in America and Germany, where the wool is going, as consumption there is more steady.—Aus.-N.Z. Cable Assn.