THE WHEAT MARKET.

Dominion, Volume 2, Issue 485, 19 April 1909, Page 5

THE WHEAT MARKET.

SHORTAGE , OF 'SUPPLIES. ' WILL NEW ZEAUAND BE 'AFF^bifEta? '■■■' :RISE IN,MEAD PREDICTED. ■: , "It is impossible 'to say ■ what effect _tho ' 'wheat gamblo will havo on values in , ftow iZealaud," : romarl!Pd Mr. , 1), W. VirtuojagentV 'for thoNcwZoalandFlonTmillors , A«Mci'ati6n,', to a DffMiMON'repdrtdr last "Week. .A'rkirt 'frbin I'tlio Itransdctlons referred 'fo. 'in.'tho' 'cablegrams, ho *cdntinued K values weVe 'ikely !to Tie affected because ihcro was an actual |sh(irtago in the World's-Supply: of wheat. 'Iα ifneit, 'ho did ■■not see what '-Ira's Ipricolof 'wheat Agoing'higher %, If valuesj'ailvaiiced at 'Homo, the Australiali aii<J 'New 'Zealand markets would in turn ho (affected 'similarly. It -Was'a cafee of folldw?tJio leader. Solnp authorities deblareli 'ihat' 4hp' ! total 'wheat yield'in New 'Zealand this season wa's ; jeitccptiorially wliilst-ii'dinit-Iting-'tliat tho yield per -ac^o'had becii'high, •asserted that , a less atoa'hadiweh laid dbwli. Ho : had -heard that a'lafge 'proportion of; tiro (gram was too soft for milling. ' Fannort-iti i 'the «mth : wero so well off th/itthey etulo! joffo'rd to wait and soo'if t!le ; rtarkct miproved. •So far as he'was aware had'notbech 'offoririgtoo freely. 'By im'Kst'season, 'farnie'i-s' had tloiio'Weil. -Wlietit \vote-h shado ;dearor nt present than it was at'tho ppenijig of 'last season. Tliero had been 'a,' Slight ih.crease in -prices recently. It 'might 'Idafo •been tho , case that farmers 'held 'ovor -largo Iquantitite, ibiit tho millers-hold : ovei- veiy ilittlo gi-ain. ';■ . ■■■ ■ ' ■■■■:.,•■':■■ .•: " • '..

.Views ofra Leading BftKor. ! !, : . A'cfcordilig'to Mr. IV.. A. 'Kellbw, '.prdsiacnt of i tho ,, Maßt<>r Bak'ors 1 ■Association, prospoj'ts look'black.' From what lib could lea'rttj-imd he had tcliablo 'sources of information—wheat (was going. to be dearer,"aljd cdnsciiuently rises |in:thp-priWs 6f:flotir&iid bread'would; follow. iFoV 'the '■ pas't Wyo yea'rs or '"io\ Uib 'prico :'pf jflour had ,beiJn 'abbyb /which "was jfrom J -69 10s. :to'' £10, per, ton.,' ITiis "time last .year the price Was ill, now it "was !£ll '10s., 'to which hhti 'to l>o added chafgee !to 'Wellingtonj tbtallint ,12s. "-Thb ipfibo of 'wheat 'aHd -flour, -was ruled by' flfo' values in ILondon., , If, the surplus >of • New /Zealand wheat wero exiwrtetl, it,iydvild - bf cbufso'Mako )a difference■ here for ■a time.; But the available quantity .for export (would be only ;a Tjagatellemtho'Hbme m'arkote; it. woiildonly be sufficient'to food'the inhabitante of London tor two days. Ho had it-on tho lk?st of authority tliat there had, been un abundant harvest this y«ar, and that the qualityof'thb grain was first-class. The new Iflour whicli Was coming ;to hand was. a, splendid article. Very-little of last season's Vhbat.(so hoihad been informed) Was held ; o\-er by the millers. M tho flour held >t pres6nt;pricos, tho bakers jnyuld/hot, bo able, to -cdntihuo to ,spll the hresid at '''present rates, which Were fixsd on tho basis of £10 10s., f.0.b., for flour. Comjpared with, tho price of flow, cost of labour, ,btc., bread was'cheap just now. Ho anticjpatod that it would 'bo foultd liecess'arj' ! fo advance'the price of bread by for'a time tit any-rate , . . ' .;".'■ . •'■ .'.,-. ..,',, ~'_ :.;.■.■. ,

! Merchant Summarisesthe Position.: r.Por /sbmo. /tihro' past,, -renjarkbef. Mr. '6. ■'■ BhiKcliffe: {of llessrs. A. S. iPatttSdii ati'd* Co;) th'o's'tatistics'hav'o poititcd to 'the p'rov bability of the World's requireadnts but- • ktrippirig. the supplies. ! -At the m6ment, Be6rbo]itn, who ,waS recognised as, perhaps tlio leading 'aithbrity, the needs of cdnsuming: tho availablo supplies by approximately '«igh't lhillioh ■iushele.; It \vais evident that tho statistical 'had, b<«!o'in'e 'siiifflfciehtly-: Btrong to -onable Amei'ioan speculators', to forlfn aJphrbal.corner in 'wheat, andi th'at lid doubt accounted for tTio exditement 'that lia'd been crated. b6th'in ; thq United Stotos'fthd ' in tho Qld .'Coiuitry. :' Up tV'ih'o 'preSon't tittle, as-far ; b's ipould : bo : seen, i tlier6 had 'nbt .boen'an-nctliarshbrtagb of 'sUfplibe, , hso in prices lhust'consc'quoritly bo itttribilt<si |0,.th0 ; strength of ''the statistical ;j)bsitio'n,Australia, had' already reaped 'substantial' ': fit from, tho 'advahco ill 'prices; Wife latc'st 6al«i of. AiVstrnlian 'being Tepbiij;*d 'iit tip to about 425. 'Bd. pei; (jnarters.i.f.'U.K:., Ivh'ilst'tho present f.o.b. ■qubt'afibns stood 'at an oven liighcr 'leVcl. lib would that tho improvement - that -h'a'd • taken -place :k .' the London niarlset Could iibt ■fail. : to l 'bo Vbnectodto sftme'extbrit'hbrb.'altJhougii it must he' borne 5n niind tha't•NeV.'Zcklnnrl"wlleat ' Would hot; command L 'aSs high prices fas .could bo'tobtaiiHtf "for th*e ind stronger -grodes that werb 1 grown ih' : M& "■■■ tra!ia. v , Indeed, tho southern price's' .-Ktk nlre'ady 'made b substalitial adyhheo 6» 'tliosb hiling at tho opening of'-this"'season, 'fand to-day's '.quotations "aiSSjit 45.; 2d. to 4s. SJd. f.o.h. New Zealand shipping ports must be about on a'.:par with Londbn qiiotationß. It;was lmp.dssiblo to .•express; hnj-tliing like ''■'■' a reliable opinion as to .the prospects. .Whatfever movement took rplacc .'itlV London must mfluonce 'New. -Zealand' lvalues ..aecordingly. . For the .present) importations ■df flour > ftom ■ mistraliaytq New Zealand 'had practically ceased .owing to. the estot .to whichthb mar»:: ket had advanced on.tho other side, and so far ,'a's .'bile could /Judge- eucli. importations!' Jvc'rp 'not likely to be reiiowetl at any -early Sate. ■' -. At 'tlie 'present moment,• th'o..prico .'of: oii'r; in No*- Zealand was ; not a'} all but of' proportion to the c(>st-of wjicat tb'tlic millers,■-.;-hud was substantially loss th(iii '.(AuSh'aliaii flour could be laid down ati : : . ... ■■' ■.;'■,.

If Prices Dccoiro Unreasonably High? , It is interesting to reclill that under tho Flour and Other Products Monopoly Prevention Act, 1907, it is provided 'tliat despite anything 'contained in Uib .Tariff Act, 11)07, it 'shall bo lawful for tho Governor at any tiino, on the recommendation of the Cdurt of Al-bili'ation, to declare that on and after a date to he specified, flour, 'wlieat, nnd p'ofca* toes impoitcd nitOiNew Zealand shall he adtiiitted ii'eo of all duty bo long As tho order lomains in force l'rom timo to time, by fhrcction of the 'Governor, the. Court may Inako inquiry as to whether tho wholesale market prico of flour in New Zealand ib unreasonably high, mid if the Court finds that it is so, it shall recommend the Governor to exerciso the powers conferred upon him. For tho puipDse of the inquiry tho price of flour shall bo decnie'd to bo unrca-soiiarily liigl, ff (a) Tho aicrsgo price of flour m New Zentand is relatively to tho piieo of whoa*, in New Zealand higher than the avorago, pn'co of iloifr in Aiiitiolia relatively to th»> n> <tago pnYo of wlioat in Australia, unless in tho opinion of tho Court the additional prico is justified by tho additional cost of production, or It the average prico of ■nheat in New Zealand has, by reason of any combination among tho holders of stocks, oV l>y 'io-i.sou of any comiilot-o. or partial monopoly, established by any such holders been raised abovo the piicp vliicii would bo determined by unicstiicted competition. In tho event of an inqniiy being lield there lih'nll bo added to the Couit one additional member to he appointed by tho Covet nor on the recommendation of a majoiily bf the societies incorpniatod under the A.'und P. Societies Act. ■ '