GRAIN, SEEDS, PRODUCE

Press, Volume XCIX, Issue 29240, 25 June 1960, Page 16

GRAIN, SEEDS, PRODUCE

Effect Of Bank Rate Change

The small seeds market was fully firm on recent rates with a moderate amount of business being transacted this week, although overseas quotations to buy showed, a ' significant drop yesterday morning, coinciding with the rise in the English bank rate.

Christchurch merchants said yesterday that such a reaction was to be expected. This had happened before and the market recovered its stability again within a few days. There was no danger of New' Zealand sellers losing confidence and “dropping their sights.” It was significant that, although buyers’ offers had dropped, there had been no change in the ■volume of inquiries, which indicated that demand was still sound, they said. The decline was only fractional and was not uniform.

It is still too early for any accurate indications of the prospects for the United Kingdom harvest and the general opinion among merchants is that the strength of demand for New Zealand seeds will remain satisfactory. Prices, however, seem to have reached a level beyond .which there would be increased resistance, one merchant said. Ryegrass trading has been very quiet and inquiries have been limited but the level of values has remained firm for several weeks and there is no apparent reason for any change to be expected. Some small trading in cowgrass has been reported but as yet Montgomery Red CJpver