TRADE REVIEW.

Ashburton Guardian, Volume 56, Issue 208, 16 June 1936, Page 5

TRADE REVIEW.

RISE IN PRICE OF BUTTER. OPT‘IMISTIG TONE IN LONDON. (United Press Association~CopylightJ LONDON, June 14. DeSpite M. Blum’s declaration that he does not intend to devalue, the franc is still the subject of recurring selling pressure. The city is adhering to the view that while devaluation may temporarily be staved off, it is ultimately inevitable, especially as M. Blum’s labour programme must enor~ mously raise French costs. An important effect of the franc crisis has been to accentuate the seasonal tightening of short-term in—terest rates. Owing to the operations of the exchange equalisation fund, the Government has been forced to pay 18.1 per cent. on Treasury bills, _the highest rate for two years. Stock markets are still quiet; The exceptionally good May unemploy—ment figures heartenedl investors, while the firmness in W'all Street re« acted favourably in London. Gilt—edged picked up as a result of “bear" covering of further heavy F‘l'encll'purchases. Industrials are quiet, but Cable and \Vireless improved from last year’s low levels. The flood of company repo‘its showing better profits is gratifying, though some fear that it may encourage labour to demand higher wages. Negotiations on this matter are al—ready proceeding in some industries, but there is no fear of a “stay-in” strike movement spreading to England.

Commodities contin'ue apathetic, a notable exception being butter, which sharply appreciated owing to speculatiVO and general buying. The Con—tinent failed to augment its seasonal decreases and Empire arrivals [have been low. The retained prices are clue to intense competition with strengthened demand, creating an extra strain on supplies. Prices deVcloped an irregularity toward the week—end owing to profit-taking, but there is an optimistic keynote in the trade, especially as cold store stocks are believed to be little altered during the last fortnight, although normally they tend to increase at this time of the year.

The poor condition of the apple market is believed to be due to the fact that shipments are insufficiently spread out. Consequently, quantities recently and at present offering are considerably larger than in the corresponding period last year, and the trade had considered the advisability of cold storing some fruit for higher prices next month. But, in View of the advanced condition, it was decided to be too risky. A similar decline in values is reported from Liver-. pool, for the same reasons. Pears, how—ever, ahre in good demand, prices showing; a. definite improvement. The New Zealand Meat Producers’ Boa-rd displayed at Smithfi-eld, lambs from the Taihape Agricultural and Pastoral Show with a View to_ ascertaining whether there was a. suitable London market for this type. W’hile the lambs were of excellent shape and quality, the small trade in heavy—weights emphasises that weight is the deciding factor on the British market.