RISING PRICES

Evening Post, Issue 11, 13 July 1936, Page 12

RISING PRICES

i#HEAT AND COTTON

MARKETS EXCITED

4&T Telegraph—Press Assn.—Copyi-SgTit.}

(Received July 13, 10 a.m.)

LONDON, July 12,

Real "fireworks" have occurred in the commodities markets, especially for wheat and cotton. Notwithstanding the fact that the United States is requiring to import 25,000,000 bushels of wheat, well-informed authorities consider that there is no foundation for any of the talk of a world shortage in wheat. Cotton has imitated wheat, rising to new high levels at Liverpool, in which market, amid great excitement, August futures were quoted at over 7d per lb for the first time in seven years. A further improvement in price is considered possible. STOCK EXCHANGE REACTION. On the Stock Exchange the most active markets have been in industrial shares, especially in armaments' companies and heavy industries. Steel production for the first six months of 1936 reached a new high level. Speculators are inclined to neglect mining shares, which are drearily stagnant, and the markets are marking time. Gilt-edged securities have become sullenly inactive. Business is not extensive, but dealing in margins has narrowed.