BIGGER HARVESTINGS

Evening Star, Issue 19760, 10 January 1928, Page 6

BIGGER HARVESTINGS

YEAR'S WHEAT PROSPECTS AUSTRALIAN COMPETITION FELT Competition from Australia is still having a serious affect on the prices which New Zealand millers are able to pay farmers for their wheat. Greater areas have been sown in wheat in the dominion this year, and with _ tho certain importations of Australian flour there is no possibility of a shortage. When the Government imposed a new scale of duties on importations of flour from overseas, the millers intimated that if tho Government satisfied the fanners, they would be satisfied (stated a Dunedin miller to-day). But the duties have not stopped the importation of Australian flour, and consequently the millers have a limit to the price they can pay the dominion farmers for their wheat. It remains to be seen what price the farmers will get for their wheat. Prices in Australia are unstable. The new crop has not yet reached the market, but the Australians are now hasrvesting. Little forward buying, although more than last year, is being made of new season’s wheat in New Zealand. Last year the buying opened at 6s and dropped to ns, hut tho forWiird sales so far completed have been at 5s 9d per bushel on trucks in Canterbury. Considerable quantities of wheat were sold, but there is no activity now in the advance market. Farmers are still offering their crops at 5s 9d, but the millers are rot buying. All dominion millers are holding big enough stocks to last them till the new harvest comes in. New season’s wheat was railed at the end of January last year, but this season tho harvest will probably not be so early. It all depends on the weather conditions from now on, but fanners and millers anticipate that no railings of new season’s wheat will be made until the middle or the end of January. So far the weather has been good, and a fortnight of hot weather would make a big difference in. the date of tho wheat coming on the market.

The crops arc looking exceedingly well throughout the country, yet last year’s yield of 36.13 bushels per acre will possibly not be reached this year. A greater lieroage will be harvested. In 1925-26 151,673 acres were sown; in 1926-27, 220,083 acres; while the estimated acreage in wheat this year is 270,000. The year 1925-26 was phenomenal for the shortage of wheat, large importations being necessary to fulfil requirements, hut the yields tin's year are expected to provide sufficient for the dominion millers’ requirements, particularly as importations of Australian flour are hound to continue, The basis on which dominion flour prices are computed is £l7 10s. a recent increase of 5s having been made in Dunedin to adjust prices in the northern centres. Under the new sliding scale of duties wheat cannot possibly bo imported at any time under 6s 9d per bushel duty, paid at port of shipment-. This makes Australian wheat cost 7s Bd, c.i.f, New Zealand. Flour is fixed at £ls 15s (duty paid at port of shipment) —say £l7 15s, c.i.f., New Zealand ports, and this fixes the price of New Zealand flour, and therefore limits the prices the New Zealand miller can par for local wheat. The New Zealand millers continue to he confronted with the competition of Australian flour. In October 477 tons were imported, in November 832 tons, and up to Decern-, her 23 370 tons. As the price for the latter is practically the same to all New Zealand ports. New Zealand millers are obliged to sell their flour accordingly.