BRITISH TRADE REVIEW.

Auckland Star, Volume LXIV, Issue 136, 12 June 1933, Page 4

BRITISH TRADE REVIEW.

STOCK EXCHANGE DULL

GILT EDGES FIRMER. DUE TO CHEAP MONEY. (Received 9 a.m.) LONDON, June 10. This has been a dull week on the Laudon Stock Exchange. Most of the markets were inactive, but no weakness developed except in Germau bonds, which naturally fell gliarply on the moratorium announcement, and in Kaffir mines, which had a severe setback as the result of new taxation proposals and resultant heavy selling from Johannesburg. The best section has been the gilt-edged market, which shows all-round firmness. This is duo partly to the improvement in sterling exchange and the cheapness of money, and partly to the cessation of speculative activity iu industrial stock, which have been more or less neglected, with the exception of brewery shares, in which there have been considerable dealings, consumption having been apparently increased materially since the reduction in tho duty on beer. Dominion stocks have been quietly steady. The lists for the Commonwealth conversion loan closed this afternoon, but no announcement as to the result will bo made till Monday. It is generally believed, however, that the cash applicants will receive only a small allotment. Commodity Prices Rise. Commodity prices remain firm and show a. remarkable recovery compared with three months ago. According to the "livening Standard's" barometer, which counts the average prices in 1930 as 100, the average on June 8 was 77.3, compared with ti8:l on March 2, the advance having been practically continuous. A satisfactory feature is the improvement in most Australian and New Zealand commodities. Even hides, which tor a long time have been depressed, are showing a considerable advance. Butter Outlook Hopeful.

Butter prices are still very low, but the outlook is regarded as more hopeful than for some time past, and, although no great advance in values is probable, traders generally anticipate a gradual upward movement. Stocks in cold store certainly sliow an increase of 1,153,793 boxes, but against this may be set the declining production in Australia and the fact that for the first time for many months the quantities afloat from Australia, New Zealand and Argentina are smaller than at the corresponding period of 1932. The present rate of consumption, aided by' the hot weather, should make a considerable reduction in the stored stocks. Traders apparently take a confident view of the position, for there has been a large amount of forward buying, both of Australian and New Zealand, during the last fortnight. Tho cheese position also is regarded as sound, consumption being large.

Too Many Apples. As is usual in hot weather the apple market is suffering from the effect of heavy supplies and the prices realised for many varieties can be hardly remunerative. Fortunately, apples have not met with such serious competition from soft fruits as was expected, for the spell of almost tropical heat and the absence of rain practically spoiled the strawberry crop, supplies of which are only about I half the normal quantity and most of the i berries are very small. They are being retailed at 1/ to 1/4 a lb, compared with 5d to Gd for apples. The prospects for apples iu the immediate future seem to bo bad, for during the next seven days 637,000 cases of Australian and 132,000 of New Zealand are due to arrive in the United Kingdom. Discussing the quality of Australian apples, a leading London importer says: "Fruit from the mainland generally is satisfactory, but little praise can be given to Tagnianians, which generally are rather poor in quality and over-ripe. These defccts are reflected in the prices."

Meat Position improves. The steady improvement in the. prices of mutton and lamb in the past three weeks encourages a more confident outlook at Sniithfield. The rise lias been partly at the expense of beef, which is stagnant, but low retail prices have caused high consumption of mutton and lamb, which should continue if there ie no marked rise in retail prices. Arrivals of mutton and- lamb in the next few weeks probably will be light and the only factor likely to cause a setback is the possibility of a heavy supply of home-grown lambs, which the hot weather may bring forward. Position of Wool. Mr. Devereux, representative of the Australian Wool Council reports as follows:—Prices at all wool centres are firmly maintained, with a hardening tendency. An official statement that the German moratorium will not interfere with the financing of foreign trade for' current business appears likely to remove some anxiety that was beginning to be felt there. Merino tops at Bradford are very firm at last week's higher prices. Users are reluctant to pay the advance, but topmakers are adopting a strong protective attitude, especially in view of latest Australian reports. Crossbred, tops continue to be stimulated by (the advance in Merinos. Rather more business is being done in medium sorts at higher prices. The majority of spinners are well employed on finer counts. _ Merino yarn prices are very firm, with a tendency against the buyer. Expanding interest is being shown in crossbred yarns and higher prices are asked. Recent improvement in France is being maintained. Sales of tops in Germany are maintained at a good volume. Prices have improved, especially for Merinos. Continental futures are firm, with an upward tendency.-