THE WHEAT FUTURE

Ashburton Guardian, Volume XLIV, Issue 10066, 12 March 1924, Page 5

THE WHEAT FUTURE

FULL OF RISKS. A MERCHANT’S VIEW.

CHRISTCHURCH, This Day. The fact that the Government has refused to fix to-day the conditions for the next wheat harvest was referred to a well-known Christchurch merchant by a “Lyttelton Times” reporter yestera&e said that he had not much to say on the subject, because in his opinion there was not much good in protesting against the decision of the Government. Personally, he had never thought that the Government would consent to the next season’s prices for wheat asked for by the farmers, viz., 6s a bushel and upwards, because these prices would have meant an increase in the price of bread. Such an increase would have resulted in a strong protest from the public, especially as the price of wheat in New Zealand to-day was above the world’s parity. The decision of the Government meant that there would be a free market for wheat in New Zealand next season. The Government proposed to increase the duty on flour from _ 10s to £3 a ton. On the present prices of flour in New Zealand and Australia this new protective duty was not sufficient, though this might ijot be the case next season if the price of Australian wheat was higher than it was The merchant added that it would be difficult to say what would be the price of wheat in New Zealand next year. As there would be a free market, a lot would depend on the world s parity. However, the fact remained that, on present world’s prices, if the new protective duty on flour proposed by the Government was imposed today New Zealand farmers would have to'accept less than thev were receiving at present for wheat if they wished to compete against imported flour. He did not know whether, in view of the free market. Canterbury farmers would co in for wheat next season. The difficulty that the farmers had to face was that on present indications wheat was the best proposition. Oats were high-priced this season, but this _ was due to abnormal weather conditions. If farmers went in larcelv for oats next ’onson there seemed little doubt that orices for them would slump. The same was true of other r*ons. It would be a serious business for the flourmills of New Zealand the merchant added, if not sufficient wheat were grown in the Dominion next season and flour was imported from Australia instead of wheat. There would also he the difficulty with regard to offal (bran and pollard), which was in demand from New Zealand farmers.