TRADE REVIEW

Ashburton Guardian, Volume 53, Issue 17, 31 October 1932, Page 5

TRADE REVIEW

HEAVY SUPPLIES OF BUTTER. FROZEN MEAT POSSIBILITIES. CHILLED B1?EF FROM AUSTRALIA (United Press Association—Copyright) (Received This Day, 8.30 a.m.) LONDON, October 29. Under the influence of the decline of sterling the stock markets have been somewhat nervy.. British funds were at first affected, but not to any serious extent. The downward movement spread to speculative stocks, but here, again, there were no great declines. The steadiness of sterling in the last few days had a good effect and the markets closed with a brighter tone. Australian Government stocks have given way slightly in sympathy with the British funds. Strangely, goldmining shares are generally easier despite the, rise in the price of the metal. Other Australian stocks, like banks and pastoral companies, are continuing to show recovery from the late depression, and the resumption of dividendpaying by the Australian Mercantile and Land Company is regarded as a good omen. According to the “Economist’s” survey, Home industries have seen some increase in activity in the last five weeks, but of so partial and moderate a character that it is difficult to say whether it attained normal seasonal dimensions. Many leading indicators of the trade position point to no change or to deterioration, but reports from many of the chief industrial centres refer to an improyement in tone and some accretion of new business. Among the satisfactory features is the September return of the Retail Distributors’ Association, showing a decline of only 3.6 per cent., compared with that of 1931. This is the smallest decrease since April, and. allowing foi: the fall in prices may mean that the volume of business has been maintained. News that both Australia and New Zealand are having exceptionally good seasons and that supplies of butter thence during November and December will be heavy is making importers rather anxious regarding the clearance of these large quantities. Fortunately the consumptive demand continues good, and despite heavy importations there is no accumulation of stocks. The increase in Germany’s import quota to 55,000 tons should have the effect of keeping a considerable quantity of Continental butter, especially, Danish, off this market, but it is considered very doubtful whether Germany can afford to buy such a large quantity, especially with a duty of 75' reichmarks per 100 kilos. The season’s first large consignment of Australian oranges, from New South Wales, arrived in good condition. A considerable portion was sold to Antwerp buyers*, who were very keen to secure them at prices, understood to be satisfactory, though, owing to the fluctuation of exchange it is impossible to state the yield. The rest of the cargo is to arrive next week, and it is expected to be sold readily as the demand is strong. As a result of the Port Fairy’s successful shipment of meat, importers are keen discussing the possibilities of the establishment of a regular trade in chilled beef. One of the chief obstacles to satisfactory, profitable trade is the difficulty of securing suitable beef. One expert points out that if Australian breeders hope successfully to compete against the Argentine they must improve the quality of their herds, and now they have a golden opportunity of doing so most advantageously, as highclass pedigree stock can be bought at wonderfully cheap prices. At a. sale of the famous Collignie stud stock, near Aberdeen, recently, the average price realised was .-£55 for bulls and £29 for heifers, compared with about £7OO for hulls seven years ago. Canada bought heavily in view of possible benefits from the Ottawa agreements.'- Further important stock sales are to 1 lie held in Birmingham, Perth and Aberdeen in February. THE WOOL MARKETS. (Received This Day, 8.30 a.m.) LONDON, October 30. M,- W. L. Devereaux (representative of the Australian Wool growers’ Council) reports that the depreciation of sterling stimulated the demand for tops at Bradford for export. Combined w ith the improvement in the overseas, raw wool markets, due to the same leason, tliis caused Bradford merino topmakers to .advance quotations. Theie was a hardening tendency, with 1 a moderate amount of new business, bine crossbreds tops are rather firm, with merino low descriptions steady. There is not much business in merino yarn, the, position of which is unchanged, quotations' being maintained. Crossbred yarns arc unchanged and there is not much business. The sales of tops to Germany is only' moderate, and prices are unchanged. The knitting and hosiery trade is fairly well employed. The weaving trade is diminishing and export trade is very pool.