THE PRICE OF WHEAT.

Ashburton Guardian, Volume XXIX, Issue 7817, 9 June 1909, Page 3

THE PRICE OF WHEAT.

Per Press Association. CHRISTCHUKCH, June 8. 'Pile latest private advice from London quotes a further decline of 6d per bushel m New Zealand wheat, the best offer now being 4s 3d as against 4s 9d last week. There is practically no wheat being bought from farmers either by merchants or millers, and the latter are shipping all their stocks on hand. Farmers are holding firmly, and m the present state of the London market shippers are unable to make any advance. The rumour that two Australian buyers intend to purchase the surplus wheat is ridiculed by local millers and merchants. AUCKLAND, June 8. In reply to the statement by Mr H. Wood, chairman of the New Zealand 1 Flour Millers' Association, that so far as he was aware there had been no buying of wheat on any large scale, and that, m fact for the past week or two' business m wheat had been of a hand-to-mouth characted, a reporter was informed to-day that it was an open secret that Australian representatives/have been m New Zealand buying grain for the past two months for I the purpose of fulfilling contracts. A miller stated that no doubt Mr Wood had overlooked the fact that of the apparent surplus of 2,000,000 bushels of wheat m New Zealand, more than half had already been shipped to London, which was conclusive proof of how the farmers intended to deal with the matter. DUNEDIN, June 8. In consequence of a telegram from Auckland with, reference to the position of wheat, predicting a great rise m the near future, a Daily Times reporter made extensive enquiries among those most intimately engaged m the trade as to .the degree of truth contained m the telegram. -The essential point of this was that m proportion to the present price of wheat the rate at which flour was selling was unremunerative to the manufacturer, and it was said by a northern miller that the Auckland price of flour should be at least. £13 m place of £12 10s. A leading miller said: " The shipping price of the New Zealand Flour Millers' Association is £10 10s f.0.b., less 2£ per cent discount. To get the Auckland price you must add the cost,of freight j (9s) and wharfage (Is 6d). Pius southern flour can be landed m Auckland at £11 0s 6d on the wharf, and from this you deduct 2$ per cent discount, leaving the price to the Auckland baker £10 los. A southern, miller has even sold to Auckland at £10 15s delivered j info the bakehouse. If the Auckland I miller sells to the baker at £12 10s, you must ask him what discount he allows 1. The position is that Auckland bakers calculate the price of bread on the price of flour, £12 10s per ton, but they don't pay that. They get big discounts. When Auckland bakers can get the very best southern flour landed at their doors for £10 15s, it stands to reason they will not pay £12 10s for it. There is a mill m Auckland which pose* as the working man's friend, but which is really working hand-in-glove with the bakers. It keeps the price nominally high and allows heavy trade discounts. By threatening the bakers to reduce the price of bread to the public it continues to do business, but at rates which are really on the southern basis." The miller expressed the opinion that a visit of Australians to buy up surplus wheat was unlikely.