GRAIN, SEEDS PRODUCE

Press, Volume XCVIII, Issue 28938, 4 July 1959, Page 16

GRAIN, SEEDS PRODUCE

Market Stable The present anomaly of the stability of the small seeds market in the face of little or no actual trade is of considerably interest to merchants and growers, alike. Normally, it could be expected that values would weaken in the absence of demand, but there are several factors which have played their part. Because of the drought in the last season there is no surplus seed available and, in fact, holdings are limited. The larger firms have their long-established connexions overseas with whom they transact a large proportion of their year’s trading. The present economic situation has precluded any speculation in the trade and this takes away a definite contributing factor to fluctuations in prices. For all merchants, there is the consideration of conserving seed for next season’s retail trade and this must account for a fairly large proportion of the stocks they are holding at present. Overseas, the importing firms are not yet certain of the North? era Hemisphere harvest and they can afford to sit back and wait before making their orders. The eventual outcome of the present situation should crystallise soon but it is not likely that shorter prices to the grower will develop. The chairman of the Canterbury Grain, Seed and Produce Merchants’ Association, Mr Duncan McFarlane, said this week that it was useless* trying to set a range of values which could be taken as what the grower might expect for seed he was holding. There was considerable variance between the quotations individual merchants were offering and to relate these to an average would be misleading. , The market for small seeds last week firmed fractionally for ryegrass but only small parcels were traded with the United Kingdom and the total amount sold was only a few tons one merchant said. Other varieties of .seed did not move. Inquiries from overseas merchants were received but were regarded as mainly gauging the strength of the New Zealand market and not indicative of increased interest.' /

The absence of a June Government order for small seeds by tender was also commented on by merchants. In the last few years there has been a call for a fairly substantial amount of grasses and clovers in June, which normally helped to improve the market after the dull autumn months. As yet there has been no indication of when the first Governmefit tender will be called. Weaker Potato Market

A further slight weakening was reported in the potato market. Shipping figures have been kept up to levels comparable with previous years by filling of forward orders but prompt sales are reported to be liard to make and little demand is apparent from North Island merchants. Better trading in special varieties of seed potatoes is reported. While digger damage to potatoes has been apparent in lines from some

areas, the main faults have been frost and water damage. Some crops have been lifted too soon after the wet weather and defective tubers had not had time to develop rot, one merchant said. The fall-off in trade in the potato market is attributed to several factors. * A large volume of under grade potatoes have been shipped on consignment to North Island markets from Southern ports and supplies of similar quality have come forward from Hawke's Bay and other areas in the North Island. Heavy forward orders have eased the demand for prompt sales.. The shipping figures do not show a direct relationship with previous seasons. Several merchants are shipping lines in smaller packs and it has been estimated that possibly onequarter of ■ the present shipments are made in smaller sizes of sacks. The Potato Board’s annual survey of stocks is expected to be released next week. Until this is available, the prospects of adequate or over-adequate supplies will not .be known.

Wheat sowings are still being made and merchants have expressed surprise at the continued demand for seed for immediate sowing. It would appear that estimates of greatly increased acreages in most areas of Canterbury will be fully justified.