The Ashburton Guardian. Magna et Veritas et Prævalebit. THURSDAY, JULY 24, IS9O. RISE IN THE PRICE OF WHEAT.
No news conveyed to this colony by the restored cable has given greater satisfaction to the farmer than a confirmation of the expected rise m the price of wheat. Previous to thtf, breakage m the cable which shut the* colony out from the rest of the world, there were promising signs of a brisk demand and good prices for grain, and further news was anxiously looked for. On July 7th wheat was quoted m the London market at 35s per 4961b5, and on the 22nd cargoes, off coast, commanded 37s 6d to 38s. What the next advices may be it is, of courtse, impossible to foretell, but, judging from information which -has reached the colony, the probabilities! are m favor of a still further increase. The American crop this season will be a very poor one, and the new crop m India is so poor that exports from that country during the coming cereal year will be very small. An American writer says that the crop of the United States must be seventy to one hundred million bushels less than the average, or only about 400,000,000 bushels, 361,000,000 of which will be required for home consumption. The European crop of last harvest the writer estimates.at 1,119,500,000 bushels, or a total of 1,267,000,000 bushels, to meet a consumption of 1,305,000,000 bushels, and leaving a deficiency of 128,000,000 bushels. Therefore, he assumes that the next harvest year will be begun with reserves drained to the utmost, and with the prospect of only 20,000,000 bushels at the outside from the Unitod States, and very small supplies from India. He concludes that, unless Europe grows a crop above the average, the deficiency will be a heavy one. At the time of writing this correspondent anticipated a favorable incoming harvest, but even under these conditions, a moderate advance was hoped for. Since the forgoing information was supplied, however, the crops of France and England have suffered from excessive rain, and the crops m Austria-Hungary have been damaged by rust and thunderstorms. What changes have taken place m Russia, Germany, Holland, Belgium, or Spain, are not recorded, but the recent rise inpriceswould seem to indicate that something unusual has occured to cause prices to go up so rapidly as they have done within the past few weeks. The position to the fanner Avho has not yet disposed of last season's grain is embarrassing, while to the farmer who has already sold it is, exasperating. The latter can only look forward to the incoming crop for a share of the good things going, while the former may ruin his chances by holding on too long, and may ontheother hand, m the light of previous experience, sell too soon for his own advantage. In any case the greatest caution will require to be exercised, and it is to be hoped New Zealand farmers will be alive to their own interests this year, and be fortunate enough to take full advantage of the market at the right moment. The only way m which this can be done is to note carefully the indications of the market, and it is for each farmer to exercise his oavii judgment thereon, and not allow himself to be Influenced by those who have an interest m persuading him to sell his grain at too early a stage, or to hold it too long, m order that the dealer, with ■all information at his finger ends, may get liis accumulated cargoes to the favourable market beforehand. At present the outlook for the New Zealand farmer is a hopeful one, and the rise m the price of wheat, combined with good price's ruling for frozen meat, should have a decided effect m restoring public confidence.