THE WHEAT MARKET.

Auckland Star, Volume LVI, Issue 102, 2 May 1925, Page 6

THE WHEAT MARKET.

SUPPLY AND DEMAND. AN INTERESTING SITUATION. CI IN AGO AND AY IN MI , KG RFN'OJS. (T'.j Tcli graph.—Ort-n Correspondent.) ( MUI.-TCm"RCTI, Friday. I'iv the process of advancing bran mnl pollard, flourmillers. as previously announced, have made the long-expected concession of reducing the rale fur Hour. which now is £IS a ton. -ays tho "Sun." ami they have agreed to buy u]i within two months the balance of tin- wheat remaining in farmers' hands on condition that the Government impor's free of duty sutlicient Australian wheat for thoir requirements. To purchase tinwhole of the haliinee of the Dominion crop within such a brief period will involve a monumental financial effort, but, of course, that is the concern of the millers. All the same it is just a question whether all tho growers will ■be prepared to quit their stocks before the end of June. Many of them may consider that they will lie able to reap a better return !>y holding their supplies for a space. At present the Melbourne quotation is (i/2 a bushel, f.o.h. JMelhourne, which would make the landed cost in the Dominion well over 7. The duty is to bn waived, but another point which intrudes is whether tin: f.o.b. quote will not advance once a demand from N'pw Zealand takes place. Though millers will have to finance the importing scheme, the Government having refused to accept the responsibility, they have every reason for satisfaction at tho bargain they have made, for the remission of the duty is a big concession, making their position very sound. Jt will prevent a rise in the price of the loaf, provided Australian prices for ■wheat do not advance.

Concerning the. trend of the world's market, which now will have an added interest to the Dominion, allegations just made by Jlr. David Smith, chief selling agent of '( auada's wheat pools, are sensational. Jle alleges that a huge conspiracy exists for the manipulation of markets against the interests of farmers and consumers alike. "It is clearly indicated that tho old theory of supply and demand controlling " prices at Chicago and Winnipeg lias, been a mere myth during the past few months," says Air. Smith, "and that instead of these markets being of assistance in marketing the grain of two continents, they have brought about a demoralised situation ill all importing countries." Mr, Smith then recalls the recent wild fluctuations. On April 11 there whs an advance of 11 cents; on April 13 it broke 7 cents; on April 14 there was an advance of 0 cents: on April 13 it broke 7 cents; and on April 10 it broke 9 cents.

He insists that the tremendous break from 1 dollar 80 cents was entirely Unwarranted. "The world's wheat situation is such," he says, "that every bushel of wheat in this country is worth 25 cents more a bushel than the present market price. On ilarch 30 the \inni- V]ii'g market was forced down, closing at 1 dollar 50 cents, or 12 cents a bushel under what Europe paid for Canadian wheat that day. Powerful American interests spread false reports about Canadian wheat thus demoralising the market and gaining huge and unfair profits." In Christchurch this week fowl wheat, which seemed a trifle easier to-day, has Buld from 0/9 to G/10 a bushel, f.0.b., s i

ANOTHER CONFERENCE.

(By Telegraph.— Tress Association.) CHRISTCHURCH, this day. Regarding the arrangements made between the. (iorernment mid. wheat growers and millers concerning supplies of wheat, Mr. Collins, Secretary of the Department of Industries and Commerce, states that, he. will be in Christeburch towards the end of next week to meet the millers' committee to discuss the question of the prompt purchase of New Zealand wheat that is available, also the distribution of imported wheat. which will be undertaken later by the Government on hehalf of the millers. An important meeting will be held in Ashburton on Thursday by representatives of the ■Wheat Growers and Millers' Association to discuss matters in connection with next year's crop, with the object of ensuring a payable price and sufficient area being sown to meet requirements.

THE SOUTHERN MARKETS.

FLUCTUATIONS IN OATS. (T>y Telegraph.—Special to "Star.") CHKISTCHCRf H\ this day. Main interest in the grain and produce market centres upon oats for the North Island has been "steadily purchasing both grade and undcr-grado fiarton oats as well as Algerians. A (iartons have sold up to 4/7 a bushel f.0.b.. s.i., for prompt, and IVs at 4/2.while for ri'ss actually on a steamer 4/:j has been rereived by shippers. Tlte strengthening has not been confined to the prompt market, and A'p for May-September have brought 4/7 and B's 4/2. Karlier in the "wpok tlit? re were <i few "pn reels o(Tercel at rates a shade below these tigurs. but these soon disappeared. The position yesterday was that the market was firm, nnd with reports circulating that the bulk of the oats in Southland now were in merchants - hands, a condition of nfTnirs that pointed to dear oats, oversellers had some reason to be uncomfortable. This morning, however, selling offers nt 4/6 a bushel for A - * came from the South, and while at the time of Tiew development, the market could be considered as being easier. Offerings in April have not been heavy, and much depends whether there is an" improvement in the supply coming forward in Mnv.

Most merchants in Christehur.h who entered the potato market backed the ivrong horso when they liought forward. The bulk of the oversellera are in the North Island, and as prices are falling they are raking in the dividend!*. A few made at n-2/fi a ton f.0.b., s.i.. for whites. Nominally the promot quote is 03/, a rate which applies also for May-Tune. For July, August and September the current quotation is 115/. Contrary to of the potatoes being shipped is very good. Growers are being offered £:i 10/ a ton at eountrv stations for whites.

There is no life in the Partrid>o pr a * market, nnrl lin~eed has weakened, supplies having Vieen ofTereH at £1(1 .")/ a ton. f.n.K. s.i.. which is the lowest figure for six or seven weeks.