COMMERCIAL ITEMS

Dominion, Volume 16, Issue 170, 6 April 1923, Page 10

COMMERCIAL ITEMS

THE WOOL MARKET PRODUCTION & CONSUMPTION Position and prospects of wool supplies as dealt with bv Sir .Arthur Goldfinch is full of interest as showing that the raw material must remain firm for some time to come. The statistical position is summarised as follows : —. Auction Sales. Julv 1. 1921. to June 30. 1922. • Bales Australian wool :. 2,900,000 New Zealand wool 720,000 3.620.000 Current Clip. Australian 1,920,000 Now Zealand 525,000 2,445,000 Deficiency 1,175.000 bales, equal to about 390,000,0001 b. The deficiency

from the Argentine is estimated at 296.217 bales, equal to about 270,000,0001 b., making the total deficiency 660,000,0001 b.

Traders’ stocks, or, in other words, the excess of traders’ purchasers over current machinery consumption, are estimated at 160,000,0001 b. It is confidently stated that the consumption of Australian, New Zealand, and' Argentine wool during the twelve months closing on' September 30. 1922, was greater than the clips of the season 1922-23 by at least 500,000,0001 b. Against this shortage there is no stock of old wool available except about 900,000 bales of Australian and - New Zealand wool (almost, entirely crossbreds) in the hands of ' B.A.W.R.A. This surplus is being sold at the rate of 65,000 bales per month, so that even with this reservb the trade has to face a fairly heavy deficiency during the next twelve or fifteen months, after which the world will have to be satisfied to consume 500,000,0001 b. of wool less in every year than passed through the machinery in the twelve months ended September 30 last. .This is estimated to represent a deficit of about 15 per cent., the consumption having -apparently reached. 3,300,000,OOOlbfper annum, against a total wool production of the world of not more than 2.800,000,0001 b. When the war broke out the consumption and production of raw wool balanced, roughly, at about 3,100.000,0001 b. per annum. Tho tendency to an increased consumption was then more marked than any tendency to increased production, qnd n. shortage of wool was anticipated by most good judges. The position can only be balanced by a largo increase of supplies, or by an .enforced reduction of consumption- owing to sharp increases in price or great economic disturbances of a general character. WEAK BUTTER MARKET

FURTHER FALL IN PRICES On Wednesday a drop of 4s. per cwt. in the wholesale price of butter in London was recorded, making the price of finest salted New Zealand butter 184 s. Ybsterday’s cable advices recorded a further drop, making the wholesale price 1785., equal to about Is. 7d. per lb. The price has not been so low since December 7, when the price stood at 168 s. At the latter date there was something in the nature of a panic. For some months prior to December the prices ruled high at about 200 s. per cwt., and the retail prices were 2s. to 2s. 2d., the latter checking consumption. Tho market assumed a quiet tone, and most traders were caught with detarly-bought stocks. . Prices were eased 2s. to 4s. per cwt. ; buyers, however, did not respond readily, a panic set in, and by December 7 the pri~e had fallen to 168 s. Retailers then reduced their prices, the Multiple shops offering butter at Is. Bd. per lb. To insure a continuity of these retail prices it was necessary to secure sufficient stocks, and heavy buying followed. The effect was startling, for whilst on one day New Zealand butter was being freely offered at 1685., by noon the following day holders were firm at 1745., and by 4 o’clock, buyers were paying 178 s. for the same . article. Since then tho prices have shown, an upward tendency, reaching their highest level on February 24. when the quotations were 210 s. to 2145. Whether the market will recover as it did in December remains to be seen, but it must be remembered that the conditions are very different now to what they were ir December for there is now an increase of supplies. The lower retail prices will no doubt stimulate consumption, and bring about a reduction of stocks, and so give the market a firmer tone. EXPORT OF PORK

KEEPING PIG MARKET FIRM •lust prior to Christmas there was a good demand for hams from Australia ; several thousands were sent across to Sydney, and this helped to maintain tho market. Since then several thousand pig carcasses have been sent to London in the frozen' state to be turned into bacon and ham, and tliis lias helped to stiffen prices locally. At the live-stock markets! in both Islands, fat pigs have been selling at better prices than for some time past. Since tho opening ci th© year the bacon factories have raised their buying prices by Id. per lb., and some factories ar© now paying as high as 7jd- per lb. for fat pigs. If tho export trade to Britain can be developed, the pig industry would be a profitable on’© to tho dairy farmers. The British market is a big, one, but those engaged in tho pig industry must be prepared to meet keen competition. The dairymen have faced that kind pi competition with butter and cheese, and have won out, and the same' success is possible in tho pig industry.

AUSTRALIAN PRODUCE. ; BY TELEGBAPH—PRESS ASSOCIATION. —OOPYBIGHT. (Rec. April 5, 11.45 p.m.) Sydney, April 5. Oats, Algerian feed, 4s. 6d. to 4s. Bd. per bushel; white, 4s. Bd. to 4s. Dd-. Maize, 6s. 6d. per bushel. Potatoes, Tasmanian, £8 10s. to £ll per ton; Victorian, £9 10s. to £lO. Onions, Victorian, £5 per ton. Adelaide, April 5. Oats, Algerian, feed, 3s. 7<l.' to 3s. Bd. per bushel. THE WHEAT MARKET. (Rec. April 5, 11.15 p.m.) London, April 5. Owing to the more buoyant f< eling in the wheat market cargoes aro firmly held and tho demand has improved at an advance, of 3d: to 6d. Parcels are firm and in fair demand at full rites. WAIHI SHARES. Aus.-N.Z. Cable Assn. (Rec. April 6, .1 a.m.) London, April 5. Waihi shares aro quoted at: Buyers 225. 6d.; sellers, 255. 3d. CUSTOMS REVENUE. Customs revenue collected at the port of Wellington yesterday totalled £10,802. ’