PRICE OF WHEAT

Ashburton Guardian, Volume 56, Issue 100, 8 February 1936, Page 6

PRICE OF WHEAT

AWAITING AN ANNOUNCEMENT. AN INCREASE IS EXPECTED. BUSINESS ON UNCERTAIN BASIS. Business on the Ashburton wheat market has been carried out recently on a basis of speculation. The millers and grain brokers have been forced to operate in the dark while the newlyformed Wheat Committee lias been engaged on essentially prolonged negotiations in the determination of the prices to be paid for the wheat crop this year. Business between grower and purchaser has been carried out in the last few weeks by the purchase of wheat on sample “at a price to be fixed by the Wheat Committee.”, Under this uncertain basis, almost the whole of the wheat business lias been transacted this season. The final decision of the committee is a cause of a good deal of conjecture among merchants. An increase of three-pence a bushel is expected by some merchants, while the majority anticipate that prices will rise. The effect of a rise in wheat prices on the prices of flour and bread is also a cause of speculation. It is agreed that, in studying the problem relative to wheat prices, the Wheat Committee has taken the price of flour into consideration, and that important developments in the milling industry will follow its decision. Flour was reduced in price some time ago by the combined millers throughout Now Zealand in an effoit to end competition from outside. It was reported that they were selling flour at cost price or on a slender margin of profit. It is stated that mills are again anxious to lift the prices to their former level, but this course is not favoured by the Government. It is thought that millers and the Wheat Committee have reached a deadlock on this question of the price of flour. While speculative business is being done in milling wheat, the fowl wheat trade is being held up, as the price of milling wheat is always a governing factor in the price of fowl wheat. Farmers are not prepared to release lower grade wheat in the market until a price is determined, especially if a rise is expected. Business in fowl wheat was in full swing early in January last yeai, but this year trade remains a standstill while the season grows late, although a rush may be expected at any time.