TRADE AND FINANCE

Evening Star, Issue 19919, 16 July 1928, Page 9

TRADE AND FINANCE

THE HOME MARKETS BUTTER MARKET HARDENS GOOD DEMAND FOR APPLES. Prc«» Association—By Telegraph—Copyrighk ' LONDON,’ July 14. The Stock Exchange passed through a somewhat awkward period. This was not duo to anything here, but to conditions abroad, chiefly the unfavourable money developments in New York, with an advance in the Federal Reserve Bank’s rediscount rate of 5 per cent, and forced liquidations in Paris and Brussels in connection with the Lowcnstein catastrophe. Even the gilt-edged market has proved susceptible to those adverse influences, and although tho leading stocks have shown only fractional dechnes there seems little hope of any early improvement in them. In some quarters a tear is expressed that the rise in the Federal Reserve Bank rate will necessitate an increase in our bank rate, but a well-informed financial writer says that there is no neecl fpr anxiety, as tho Bank of England is m a stronger position than it has ever been since tho outbreak of the war. Exchange is certainly’ moving against us, but it is still a long way from a point when it would be profitable to export gold to the United States, and it is evident that the situation, compared with yen.r ago, has altered very much in our favour, so it seems improbable that a rise in the bank late will bo necessary. On the other hand, the present rate is likely to become more effective, and discount in the open market should have a further advance BUTTER AND CHEESE.

'Flic butter market continues to harden, and the demand is improving. Many people in the trade are looking forward to higher prices, especially for choicest A 1 first-grade qualities, during the next months, and there is some speculative buying, One factor contributing to tho firmness is active buying on the Continent, especially by Gcrmany, so that tho supplies arc being weirabsorbod. Cheese has also a very firm market. Canadian prices are too high for our buyers, and with the New Zealand supplies on the short side and English also scarce values seem likely to harden still further. APP.LES IN DEMAND.

The Australian and New Zealand apple season is finishing satisfactorily, for though the arrivals during the last week at various English pons aggregated 250,UU1) boxes the demand has been so good that- prices have been maintained For this wo have to thank the spell of hot weather wo have find tor a fortnight, which has given an enormous stimulus to the consumption of fruit of al. kinds, so that although the market is well supplied with both home-grown and Continental soft fruits the demand foi apples is sufficient to clear all arrivals, and we have not had the end-of-season slump m prices which has often been previously experienced. A feature ot the apple trade this season has been the heavy sales at Hamburg, where seventeen steamers landed 666,885 boxes from Western Australia, South Australia, and Victoria. This is easily a record for Hamburg, and the importers there are claiming that the Hamburg market is regaining its old position as one of the most important centres for the distribution of Australian apples, 'they are carrying out an extensive “oat more fruit” propaganda campaign, and to this they attribute their success in selling such a largo quantity of apples at prices which they claim to average about 2s a case more than is realised in other markets. —Australian Press Association.