THE WORLD'S WHEAT.

Auckland Star, Volume LVI, Issue 53, 4 March 1925, Page 8

THE WORLD'S WHEAT.

CAUSE OP HIGH PRICES.

An article in the "Economist" on "The World's Wheat Position" states that the year 1925 opened with an ominous prospect for the consumer that the price of-the loaf may be dearer. It adds that the high prices cannot be attributed to the holding up of wheat in exporting countries. The fact that Russia is a buyer, instead of an exporter, of wheat this year is pointed to as one cause of the higher prices now ruling. "Long before the wheat crops in North America were reaped," states the writer, "it became evident that the exportable surplus from the United States and Canada combined was likely to be substantially less than in the prevous year, and probably less than the average. The supplies from the other three countries could not be relied upon to make up the deficiency, and that in consequence there might be a 'scramble for wheat.'" After quoting statistics the article continues. "Experience suggests, however, that facts usually prove less formidable than forecast.", and while the present prospect is in some respects unfavourable, the spring may bring a change and give a new direction to wheat prices."

As far as Xew Zealand prices are concerned the market in Australia is a factor to be considered, and this to a great extent is dominated by prices in London. This year there has been free buying of both Avheat and flour in Australia for shipment to the East, and this has naturally helped to firm prices in the Commonwealth. It is this, no doubt, that causes growers in the South to demand higher figures for their grain.