TRADE NOTES

Evening Star, Issue 18808, 5 December 1924, Page 9

TRADE NOTES

Wool boom continues. DUNEDIN'S FIRST CATALOGUE. A fortnight- hence the firsts Dunedin ■wool sale df. the current season’s series is to be held. ‘'Last year the catalogue for the corresponding sale, held on December 19, comprised about 13,000 bales. This year the offerings, promise to bo considerably heavier. Wool is coming in freely. It has been a good spring, free from much rain, and shearing would have been even more forward but for the difficulty in getting shearers, who have presumably been hung up by broken weather in the North Island. This scarcity is fairly acute in Otago, and operates against achievement of the keenness of growers to market their clip early and make sure of the phenomenal prices ruling. Already some of the station clips are coming to be put up at the first sale, so_ that the proportion of farmers’ lots ■will perhaps not bulk so large as usual at this fixture. The wool is opening up very well indeed. The phrase used by one broker to describe one clip was “gorgeous.” Another broker, in showing samples of half-bred hogget and ewe wool yrown in the Alexandra district, was justified in his praise of it, for it was undoubtedly well grown and remarkably light in condition. Word has just been received of heavy rain in (he Lakes district of Otago, and it is possible that this ■will retard shearing and tell against the chalice of some of the wool arriving in time to bo catalogued for tiie first sale. Those connected with the trade who visited Christchurch at the end of last month to attend the only sale so far held in the South Island state that, though there was some very nice wool catalogued, somewhere about 70 per cent, of the offerings were dusty. As to the tone of the market, general competition was very keen indeed up to a certain limit, beyond which k- was very often confined to a .Bradford buyer, an American buyer, and, in the case of the fine wools, to the buying representatives of the dominion’s woollen mills. In to-day’s report of last night’s Auckland sale it is stated that “one nr two buyers who are usually prominent held back, but whether the wool was not suitable to their requirements or whether they hoped that prices might ease was not apparent,” The same feature was observed at (he Christchurch sale, usually heavy buyers for Bradford and the Continent respectively being content with purchases totalling only a fraction of what this brace of buyers usually secures. If the reason of this holding off is the expectation of less extreme prices later on in the season, such a view is evidently not shared by the huge majority of buyers—nor by selling brokers either. WILL VICTORIAN FLOUR COMPETE? Overseas markets for wheat have lately been showing ups ami downs. A. lull in the Continental demand, together with the. fact of a number of unsold cargoes being near at hand to Europe, had an casing effect on prices for futures. Possibly one reflection of this is that flour has been quoted as low as £l3 10s per ton f.0.b., Melbourne, for future delivery early in 1925. What this fact means to the "flour-milling trade throughout New Zealand, also to the growers of wheat in the South Island, need not again be stressed in these columns. It is understood that the Government is being approached by those interested, but negotiations are far from being so advanced as to warrant any statement of the likelihood or nature, if any, of protective action. It looks fairly probable, that the hopes of the Minister of Agriculture, who not long ago announced a clean cut by the Government from being henceforth mixed up in any way in the wheat and flour business, are not. too well founded.

It may not be generally appreciated hero that Australian flour-millers have for years past done a heavy export business with Egypt. .The volume, in the last six years has varied between 60,000 and 130,000 tons a year. In the first ten months of the present year Victoria alone has sent 57,636 tons of flour to Egypt. The demand continues, bub it cannot be met because freights are not available. Shipowners are concentrating on the ocean transport of the Australian wool clip, and the industrial dispute An the shipping industry in Australia worsens the position as regards the export of flour, not to mention the disturbed state of Egypt. Under the circumstances it is natural that Australian flourmillers are not oblivious of the possibility of New Zealand as a market. Producing interests in New Zealand apparently do not lack confidence in political protective action by our rulers. It is reported that a Waimate farmer has recently refused an offer of 7s 9d per bushel, on trucks, for his new season wheat (Hunters and velvet varieties) when harvested, while forward buying offers of 7s, on trucks, have been'plentiful, hut have almost, if not quite, invariably been treated in the same way by growers—-refusal. It is safe to say that such offers would neither have been made nor been refused if there were any real apprehension of unrestricted entrv of Victorian flour on the basis of £l3 10s or £l4 per ton f.0.b., Australian ports. CLIMATIC VAGARIES AND CROPS. Crop prospects vary in Otago and Southland. In Central Otago and along the coastal cropping fringe northward from Dunedin the state of the growing crops tould hardly be bettered. But southward pf Dunedin and practically throughout Southland more rain is badly wanted. Ihe explanation is the prevalence of northeasterly weather. This usually brings moisture with it to the coastal area as far south as Dunedin, but little or no further southward. South-easterly weather, with its usual “thick” conditions, has been peculiarly absent, to the detriment of crop, and' even feed prospects, in parts of South Otago and most of Southland. The effect of such dryness, however, is to some extent lessened by the fact that the cereal paddocks were sown earlier than usual, and the then favorable weather with seasonable rains gave them a good start. The present dry weather will hasten the ripenme of the berry, and yields should not be so badlv affected by its continuance. It seems likely that the harvest will be earlier than usual. New wheat should bo available in Canterbury towards the end of January, and, given average weather, the Otago" yield should begin to be available by February or early in March, j. A Christchurch writer questions the accuracy of the official estimate of the area ‘trader wheat as being a few thousand 'acres less than last year. Ho considers it '.will prove larger than estimated, not sufficient account having been taken of the j*rery heavy spring sowing, consequent of 'the winter draught breaking, the rains cleo giving the spring-sown crops a wonderful send-off. This writer, after a tour of the grain-growing districts, looks for a high average yield—not less then thirtyfive bushels to the acre, as against about ■twenty-four bushels to the acre last season He never saw during his tour such a prevalence of good crops, and such a scarcity of bad ones. But for the appearance of rust, due to moist weather, checked later by nor’-westers, he would have prophesied a record yield per. acre, but, however high, still short of New Zealand requirements, owing to the insufficient area sown in wheat. FUTURES IN OATS.

The first line of Algerian oats this season is already being cut in this district. The price paid for it is 3s per bushel on trucks: These oats are wanted for seed purposes, thousands of hags of Algerians going to the North Island every year. As to the chance of Australian competition in the North Island market, present Australian quotations are 4s 4d to 4s 6d per bushel, f.0.b., s.i., for machine-dressed and clipped oats. At present prompt-de-livery business in oats is very slack, and ■ia not expected to take up till after the .•New Year. Very low quotes are being received for forward deliveries, forward sellers' offers being 3a 5d per bushel.

cipating being able to buy new-season oats from farmers at 2s 6d or under on trucks. This is not a payable price to growers, and, with the high prices ruling for other primary products, such forwardselling operators appear to be taking considerable risks, for the effect has been to make farmers bold off sowing oats. Much the same conditions are observable in regard to ryegrass as to oats. Forward sellers quote 5s 6d per bushel, f.0.b., s.i., implying the securing of supplies from growers at prices unprofitable to the latter.

In proof of the early season, potatoes are now arriving from all districts. The North Island reports glutted markets, and consignments sent south have realised as low as Id per lb ox wharf, which is well under the usual price for new potatoes enrlv in December. Supplies are coming forward freely from Outram and the Peninsula, while Oamani consignments are beginning to arrive. DAIRY PRODUCE. Evidently the London butter market is more stable, owing to the approach of the Christmas trade, but thereafter it is expected prices will fall below 200 s per cwt, as against to-day values of 204 s to 2065. Dairy farmers are not, however, being affected by the anticipated drop. The butter factories are still paying them Is 6d per lb for butter-fat, whereas the position is not considered to warrant payment of more than Is 2d per lb. Evidently the producer is at the moment benefiting considerably as the result _of keen competition over him as a supplier. The cheese market is slightly firmer, at 925. Relatively less cheese than butter is at present arriving in .London ; but if butter prices in London fall, as most in the trade expect, cheese production will be stimulated, and a corresponding decline in prices is thought probable. A considerable quantity of dairy produce is now being disposed of by the consignment method in preference fo sale outright on the f.o.b. basis. MISCELLANEOUS. Figures show that tremendous strides have been made in the development cf the overseas markets lor (scotch whisky during the past two years. During the first eight months of 1924 there were sent abroad 5,455,023 proof gallons of British spirits, as against 4,686,201 and 5,761,285 proof gallons for the first eight- months of 1923 and 1922 respectively. Particulars of destination would bo interesting, if procurable, as showing what proportion of the export is and lias been finding its way to the United .States of America.

Correspondents at the various Continental wine growing centres have been forwarding in discouraging reports about the vintage. Owing to the abundance of ram and Iho absence of .sunshine the gathering has been delayed, and experience teaches that while an early vintage usually brings forth good wines, a late harvesting generally has the reverse effect. In France, Portugal, and Italy (lie unfavorable climatic conditions have fostered cryptogamic disease, particularly in the low-lying districts. In Spain, however, a long drought has been experienced. The vintage there, while likely to of good quality, should he small in quantity. Reports from Champagne, where the vintage is a failure, indicate that it has been the worst year on record. Rain, cold, and lack of sunshine are responsible for the rotting of the grapes, and thousands of acres have been destroyed. This failure follows on the bad years of 1922 and 1923. The stocks accumulated as the result of the good but comparatively small vintages of 1919, 1920, and 1924 should suffice to supply all likely demands on this side for the next four years.

Through the P. arid 0. liner Maloja being declared “ black ” by the Waterside Workers’ Federation and having’ to leave outward cargo from Melbourne “ on the wharf,” nearly 1.000 tons of Victorian butter, valued at £150,000, misses its market. The dislocation of butter shipments would involve, huge loss to the producers, whose surplus for cyport this year is exceptional. There is also great anxietv about the. lifting of the wool clip, and the possibility of the suspension of wool sales'has been spoken of. There has been a heavy dumping of building timbers on the London market, where, despite increased consumption consequent on building activity, stocks are accumulating. This does not apply to Canadian woods, which are seeking an outlet in the United States in preference to Britain. Whereas prices for building timber have declined, those for furniture timber, most of it of American origin, show an upward tendency.. Arrivals of mahogany in log form are below normal. A Cuban mahogany log brought in October the record price of 26s per foot when offered at auction.

Conflicting reports and opinions are still current regarding Germany’s competitive power in the world’s markets. It is pointed out that under the Dawes plan the exporters of that country will no longer possess the advantages of a depreciating currency, low taxation, and freedom from bonded indebtedness. For these reasons it is expected that their prices will reach international level. Yet statements are not lacking that the Germans still succeed in undercutting their rivals by a small margin. There is little doubt that now. as before the war, labor is the main competitive factor, and that while in Germany the output of the worker is greater anil his wage lower than in Britain, British trade will be threatened.

British Customs and Excise duties were expected to show a shrinkage of £30,000,000 this year, hut during the first six months (April-September) the drop was nearly £20,000,000. ‘Lloyd’s Bank Monthly ’ for October was inclined to regard the outlook for more prosperous times as more favorable then than at any time since the war. The most noteworthy revival of confidence, it says, is in Germany, where a recovery may occur more quicldy than is now anticipated, meaning that Britain will have to face an evergrowing competition in the struggle for the trade of the world.

Commercial orchards (those producing or calculated to produce fruit for sale to the value of £SO or upwards a year) have decreased in total area in New Zealand each season since 1918-19. The latest decrease of the area in hearing was from 20.235 acres in 1923 to 20.034 acres _ m 1924, and in the area not yet in bearing the decrease was from 4,929 acres to 3,754 acres. Last season there was a decline 'n the production of all fruits except lemons (the crop of which increased from 10,998 bushels to 13.844 bushels) and walnuts (which rose from 328 to 436 bushels). Since 1921 electrical power employed cn farms has considerably more than trebled —from 456 motors witli 1,611 nominal horse-power to 3,587 with 5,553 horsepower. Exclusive of sliped wool from, woolscouring or meat-freezing works, the New Zealand clips for the past half-dozen seasons have been as follow : Year. . lbs. 1918- _ 183.563,145 1919- ... 172,808,032 1920- ... ... 168,954,318 1921- ... 1,59,881,108 1922- ... ... 162,738,826 1923- 165,913,624 Between January 31, 1923, and January 31, 1924, the total area of occupied land in New Zealand went back slightly—from 43.653,163 acres at the former date to 43,672,564 at the latter. The number of individual holdings, however, increased from 85,519 to 86,139, reducing the average ares of each holding from 510.45 acres to 505.84 acres. In Canterbury the average holding is 603 acres, in Otago 958.62 acres, and in Southland 550.78 acres. The New Zealand Government’s abstract of statistics (October 27) shows the wholesale price of first grade kauri in the four centres to be :—Auckland, £2 10s per 100 ft super.; Wellington, £4 4s 3d; Christchurch, £4 3s sd; Dunedin, £4 10s. •Second grade kauri is quoted at _£l 16s 9d in Auckland and £2 19s 10d in Wellington; third grade. £1 4s 6d in Auckland and £2 15s 6d in Wellington, Eirnu (clean heart) was £3 4s 4d in Wellington and £2 2s 6d in Dunedin, the o.b. quality being £1 10s 7d in Wellington and £1 8s in Dunedin. Oregon (merchantable quality) was £1 12s 9d in Auckland, ill 17s 4d in Wellington, £1 18s 6d in Christchurch, and £2 5s in Dunedin. Forty fewer firms than last year exhibited motor cars at this year’s Olympia in London, weaker elements in the trade having gone No .German or Austrian

cars were displayed. The feature of the increased business done compared with j last year is the advance in export orders, j which has averaged about 100 per cent, j Medium-priced cars sold most readily, but | the fairly expensive vehicle, which is a j speciality of Britain, is slowly gaining a I better footing in oversea trade. _ The . manufacturers of light cars, who did the ' bulk of the home business at the Olympia show, have no reason to be displeased with their export orders. These, although small as yet, are well up to expectations, and augur well for future trade in districts where the roads are good. With regard to competition from abroad in the British market there has been a reduction in the price of foreign cars, but not to the extent anticipated, and it has been offset jby fhe cats made in Byitish vehicles^