WHEAT INDUSTRY

Dominion, Volume 23, Issue 55, 28 November 1929, Page 10

WHEAT INDUSTRY

STABILISING THE MARKET

POOL ENTERS INTO CONTRACT

Dominion Special Service. Christchurch, November 27. It was announced yesterday that in order to stabilise the wheat market the wheat pool had contracted to supply millers with a substantial portion of the 1930 crop at a price satisfactory to growers. The opinion was expressed by a flour-miller to-day that the exportation of considerable quantities of this season’s wheat had led to this cooperation. He said that in view of the attitude towards export taken up by the select committee of inquiry into wheat duties it was considered that the interests of the wheat industry would be best served by guarding against any necessity for exportation next season. Millers had been buying stocks from the pool all along. The pool held large quantities of wheat which it must sell and which must eventually go to the millers, therefore it was best for buyer and seller to co-operate in the best interests of the industry. The minimum quantity of 500,000 sacks mentioned in the contract for the 1930 crop represents about 25 per cent, of the yield expected. The acreage in growing crops is 234,000, and on' a basis of thirty bushels to the acre this will yield about 7,500,000 bushels. There will be a carry-over to next season of about 1,500,000 bushels. In wheat pool circles general satisfaction is expressed at the terms of the contract.

It has been ascertained from a reliable source that the sale of pool wheat to the millers for 1930 has been made on the basis of 5/9 per bushel, plus Id. brokerage, for Tuscan and 6/-, plus Id. brokerage, for Hunters, on trucks country -sidings, with increments according to the month of delivery. Wheat north of the Waipara River and wheat south of Hampden will be the subject of separate agreements.