GRAIN PRICES AND PROSPECTS

Auckland Star, Volume XXXVII, Issue 116, 16 May 1906, Page 7

GRAIN PRICES AND PROSPECTS

Mr George W. Leadley, president of the union of fanners formed in the South Island, writes as follows to the "AshbuAon Mail":^ "Sir,- —A few weeks ago I wrote to a number of likely sources of information in Australia requesting to be informed. as to the probable trend of prices, etc, of wheat, and the eupplies available. Amongst other places I wrote to South Australia, and the following repiy, ■which appears in the answers to correspondents in the 'Adelaide Advertiser , of April 25, will be read with interest by others:—'G. W. Leadley, Ashburton, New Zealand.—First, it is not likely that any ordinary rise in the price of New Zealand wheat would lead to the markets of that colony being swamped with Australian grain. At the present time Australian supplies are so tightly held by farmers, who, after several abundant harvests, are in a strong financial position, that shippers and millers are compelled to pay prices above European parity for wheat to meet their engagements. Australian rates would therefore have to come down a good deal, or New Zealand prices (quotations Christchurch 3/2J to 3/4 per bushel on April 10) advance considerably before a profitable business could be done from the Adelaide market. Second, no wheat has been shipped from South Australia to New Zealand since January 1, and there have been no direct shipments of flour; while it is doubtful whether any has been transhipped in Melbourne or Sydney; if any, certainly not more than ten tons. Third, the 'Advertiser' estimate of the last wheat crop of South Australia is 20,000,000 bushels. Of this 4,000,000 bushels are required for food and seed, leaving 16,000,000 bushels for export. Of this quantity, up to April 21, 8,154.750 bushels of wheat, and 28,556 tons of flour, representing 1,327,----800 bushels of wheat, equalling a total wheat export of 9,482,550 bushels, had been exported to all parts, leaving 6,517,450 bushels still available for shipment, during the balance of the export year of which seven months have yet to expire. Fourth, the leading markets for South Australian wheat in the order given are the United Kingdom, South Africa, West Coast of South America, Mediterranean porta, Sweden, Tasmania, Western Australia; for flour, the East Indies, South Africa, London, Mauritius, Western Australia, Liverpool, Glasgow, Ceylon and Hongkong. Fifth, F.A.Q. wheat, value April 24 f.0.1x, Port Adelaide, 3/3 to 3/34 per bushel, leading brands of flour, £ 7 to £ 7 2/6 f.0.b. . By inserting above you will oblige.—l am, etc., " GEO. W. LEADLEY."