COMMERCIAL & FINANCIAL

Evening Post, Volume LXXXIX, Issue 70, 24 March 1915, Page 4

COMMERCIAL & FINANCIAL

Evening Post, Wednesday. The embargo placed upon the exportation of oats would appear to have had the effect of steadying the market and bringing prices back to the level ruling a month ago. There is still some doubi; as to the volume of the Southland yield, and -until this is known with tolerable certainty there i 3 bound to be constant movement in the market. Meanwhile oatmeal is still quoted at £22 f.o.b. South. Flour remains at £17 10s per ton f.o.b. South, but wheat is a little easier. Pollard, owing to sales made to Australia, has advanced to £9 per ton. Bran shows no change. Chaff cannot be landed in Wellington from Blenheim much under £8 7s 6d. Onions are exrjectod to arrive this week, and will relieve the market, ruling prices for which are now £5 10s to £6 per t.on. Canterbury potatoes are now coming in, the greater part of the local supplies being finished. Canterbury* are now quoted in the South at £5 to £5 ss. Chicago "futures" on the wheat market, as quoted on various dates within the past eight months provide an interesting comparison. On 25th July. 1914, the May option was quoted at 882 ceiKs per bushel, on 31st October it had risen to 1203 to 122 cents, and on sth February had reached the enormous figure of -172 a to 177 cents. Then, by sth March there had been a drop to 1352 to 140 The four dates represent the position before tho war menace, when the Turkish attitude affected the "pit," the record quotation, and the fall consequent on operations at the Dardanelles. The Chicago correspondent of tho New York Post wroto recently that foreigners were said to own the bulk of the 'wheat in the visible supply, and had as much, if not more, bought for future delivery. The American farmers owned the rest, and were not selling freely. Some shrewd traders therefore claimed that higher prices were yet to come, even touching the 1 dollar 85 cents, made in the year of tho Loiter corner. That selling has been heavy by farmers is indicated by a discussion in a Canadian 'paper as to whether Canada might not even have to import wheat. Millers, not dreaming of such unprecedented prices, had failed to fill their requirements early, and were faced with the position tha.t the wheat already sold for export might leave the home demand insufficiently provided for. Already, it is stated, Western Canadian stockmen are importing corn to replace high-priced oats for feed purposes. HIGH-PRICED PRODUCE.— The New Zealand farmer does not bland alono in. having profited by tho war through advances in the price of his produce. In the province of Quebec, the Canadian man on tho lfind also realised very good values. Hay, which 'is largely produced, was selling a month ago at almost 17s per ton more than in the previous' year A good crop of oats sold at 8^ per bushel advaii(io; barley was about 8d per bushel higher ; buckwheat had risen over a shilling; butter uas bringing almost 2cl per 1b more, and cheese Was sold at an advance- of Id per Ib. In the .north-west provinces wheat sold at 2s per bushel advance, atld the speculator was not likely to lot it go without a further profit. Tho United States producers of grain also benefited ; their crops being valued at £74,000,000 in excess of the -previous record of 1913. On the other 'hand the biggest cotton crop on record na.s worth £62,500,000 less than a much smaller crop in tho previous >ear. The output of coal was reduced by 60,000,000 tons, and that of pig-iron. 7,666,000 tons. Trade generally suffered in various directions. , DAIRY PRODUCE. — Last week's cables showed a further advance in the price Of butter on the London market. Danish was unchanged, but choicest New Zealand sold at 142s to 144s a cwt., almost equalling the highest price touched before the fall at the end of last month. Qunn- i tities were reported to be at the dock,' however, and it was anticipated that their release may cause a eet-back. A cable received at the time of writing advises c-uotations back to 140s. The reported prohibition of exportation of Siberian supplies, since contradicted, would undoubtedly have added to the strength of the market, by forcing buyers of Siberian to look elsewhere for supplies. In several districts in New Zealand timely rains have been experienced, and the effect of this will be to lengthen the season a little.. The market for cheese shows a tendency to advance, 93s for coloured and 94s for r whiie being the quotations last week. Affche beginning of the seasdn for manufacture in Canada there was reported to be a dearth of rennet. Supplies from Bavaria were entirely cut off, and difficulty was anticipated in obtaining 'greater quantities from Denmark. This however, could hardly be a -great question, since Canada and her neighbour, the United States, could produce sufficient for their requirements if other sources o" supply failed. Of course, there has 'jeen an advance in price; but, though jreat in itself, it amounted to little when jhe high price of the cheese product was con- , side red. GENERAL STORES.— Very little, movement is recorded for the week in general storo lines. Desiccated coconut was slightly easier, and there was an easing in the market for G'ajifornian fruits. The general tone of the jute market at Calcutta also eased to a small extent. Kapok was firmer at 3-16 d per lb advance. TEA.--At the Colombo sa.les last wdbk there was a slight easing of tho demand for one line! but unfortunately this was not a line which comes to New Zealand. Tho lines taken by New Zealand showed no alteration. FLAX.— The hemp market is reported strdhg, with an increase equal to £1 for all grades. The quotations are: Good fair, £27 15s to £28 per ton; high fair, £26 15s to £27; low fair." £25 15s to £26. The- demand is almost entirely for early shipment. AVOOL, SKINS, AND HIDES.— Last week's London wool sales closed with the market firm, for all classes of crossbreds; but there was an easing of the demand for merinos, American buyers not operating so freely owing to their having been unable to ship all the wool bought at the .previous sale. Prices for sheepskins are well maintained, but there is a dodine in pelts. Hides are reported easier in Australia, owing to the accumulation, of stocks, and at one or two country sales in New Zealand a sympathetic movement has been, evident. Australia has hitherto provided an outlet for a portion of New Zealand's exportable surplus; but with other markets available it is not thought likely that the effect of Australian prices will" be felt to any great extent here. Of course with tho present high prices ruling no slight downward tendency can be termed extraordinary. Much trado in leather and leather goods is being taken by America, and trade journals indicate that the rush of business has been so groat as to compensate for previous losses in a twelve-monthly period. The demand for fino leathers, glazed kid, calf, etc., foil off owing to the war, but sole, heavy upper, harness, saddlery, and military equipment; leathers generally found a greatly increased outlet. For example, sole leather exported from tho United States in No- \ ember of last year amounted to 11.807.154 pounds, valued at approximately £640.523. as compared with 1,632,754 pounds, valued at £83,238, in.November, 1913. "All other leather," which includes material for harness, straps, bags, etc , was exported to the value of £360,320, as against £51,430 in November, 1913. Practically all the sole leather went to the United Kingdom. In addition to large exports of leather United States tanneries have lately been taxed t6 their utmost to meet the demands oi Home* manufacturers who have big European contracts for military equipment. A British contract for somewhere between a million and a. million and a half sets of infantry equipment is stated by Dun's Review to have been divided amongst United States and Canadian manufacturers. ' It was eetimated that between 500,000 dnd 750,000 sides of leather Would be requirbd for this contract alono. In addition there were large enquiries from France, Rumania, Italy, 1 ivhd Greece ; the report in tile trado being that tho Italian enquiry alono was for a million sots of equipment consisting of throe articles to tho set. Naturally there has been a big advance, amounting to almost fifty nor cent., in the pricoi of ttrap leather

FROZEN MEAT— lnterest in tH< f-rozpn meat trade, now that the whole cJ the produce has been sold, centres upon the question of, shipping and the probable shipping space available, this, of, course, regulating the activity at the freezing works. Wellington has not been so unfor tunate as many other ports in the mattei of storage at the works, and the freezing companies, though they have had tc slacken their pace considerably, and n: one case to close down for a short while, have been able to keep engagements witl: their clients. It is expected that within a week Hie position will be cohsiderablj improved, and should nothing unusual occur the work will proceed without undue interruption to the end of the season, AMERICAN. TRADE.— The Unite" Slates of America placed on record fron: 2nd January to 30th January, 1915, a balance of trade in its favour ci £26,226,800, exceeding the record of anj one month in the history of its foreign trade. This is according to the records of thirteen of the chief Customs ports oi the country. The total exports of the four weeks amounted in vyalue tc £47,712,800, and the imports to £21,486,000. These figures represent only telegraphic returns from the principal Cus toms ports, and when complete reports have been compiled, from the entire service, the volume of business will show a material increase, probably about 14 pei cent. o*er tho figures now presented. NEW TRADE REGIONS.— Most in, teresting reports upon new trade regions opened y up by the war are furnished by the Chamber of Commerce Journal. German South-West Africa is referred to by t^ie South African correspondent, who draws attention to the trade bf the territory in 1910. The gross imports and exports were a little over two millions sterling, and about 50 per cent, of the imports and 75 per cent, of the exports came from or went to Germany. The largest item in the export list was copper. The administration, with German subsidies, had established a system of 2000 miles of railways, and this could be linked up with comparative ease with the vital junction of the northern, eastern, and western systems of the South African Union. With this done, it was expected that trade with the new addition to the Union should bulk largely in African returns. The soundness of South Africa, despite war and rebellion, is emphasised, and a, boom is predicted after the war like none witnessed since 1899. A great prejudice against articles of German manufacture is reported from Canada by a correspondent, wliq is of opinion that a British trade wedge could be hammered in easily. The Argentine correspondent states that German imports to the value of £13.000,000, mostly represented articles ' which could be equally well produced by Great Britain ; and some of the articles, in fact, were formerly supplied by Great Britain. This trade, however, is not to be had for the asking. The United States is making a bold bid for it, and any attempt by Great Britain must bo by a well-founded scheme backed up by financial assistance and organised endeavour. The Panama correspondent says the trade is there, but Great Britain is not likely to get it, or even increase the present volume of business, since a surcharge of 25 to 30 per cent, has been placed on freights by steamship lines; while 'freight rates from the United, States have been reduced 25 per cent., making 50 to 55 per cent, in favour of America. , MILLING COST.— An interesting table has been compiled by Mr. Trivctt, New South Wales Government Statistician; showing the cost of producing flour. The compiler's data are : Wheat, 601b per bushel ; and 48.175 bushels make 1 ton (20001b) flour, and 8101b of offal. Allowing £1 5s 92d for 'expenses of manufacture and selling, the table of soiling prices (much abridged) is as f ollow : —

( This '-allows for no millers' profit, and the higher the offal realises the lower the flour can bo sold. ■ ~~

Prico of Wheat. s. d. 4 0 4 3 4 6 4 9 5 0 5 3 5 6 5 9' 6 0 6 6 7 7 Offal, £5 p.' ton. £ s. d. ... 8 18 Q . . 9 10 1 ... 10 2 1 ... 10 14 2 . . 11 ,6 2 ..1118 3 ...'l2 10 4 " ... 13 2 4 . . 13 14 5 ... 14 18 6 . . 16 2 7 Offal, £7 p. ton, £ 8. d. 8 1 It) 8 13 11 9 5 11 9 18 0 10 10 0 11 2 1 11 14 2 12 6 2 12 18 3 14 2 4 15 6 5