LONDON MARKETS

Hawera Star, Volume XLVIII, 16 February 1925, Page 5

LONDON MARKETS

WEEKLY REVIEW

BRIEF BOOM IN BUTTER

demand falls off

BY CABLE—PRESS ASSOCIATION —COPYRIGHT

Received Feb. 10." 9.5 a.m. LONDON, Feb. 14

Dullness still reigns in the speculative section of the Stock Exchange, where buyers are conspicuous by their absence, although prices of many shares are decidedly lower than a month ago. Gilt-edged securities remain steady, and there has been a notable appreciation of the 3i per cent, conversion loan, which now stands at £79 lOs, showing a very handsome profit for those individuals who secured it at about £77 10s when the last issue was made on January Bth. The firmness of this stock is atributable largely to heavy Government purchases tor sinking fund requirements. Other favourable factors are diversion of money from speculative {docks, and optimism regarding Budget prospects. DOLLAR EXCHANGE. Regarding the dollar exchange, the newspaper Statist says: —"It is very probable that the rate was talked up faster than the position warranted. Had our Government declared for a gold standard when the dollar rate was within 2 per cent, of parity, probably the margin would have been closer before now. Such a declaration was not made, and foreign exchange markets at New York and elsewhere are still in doubt regarding the Government's intentions. The ardour of New York speculators was costderably damped by the cautious tone of the speeches of the chairman of large hanks here, and it has become clear that until the pros and cons have been deliberated, the dollar exchange will be subject to the same influences as have obtained in the past, when the gold standard was but the distant goal.” WOOL MARKET.

Commenting on the curtailment ol the wool offering in Australia, a Bradford corresponecmt writes: —"Iffe experiment will be followed, with, great interest. Few Bradfordians anticipate its success; the circumstances are against the- wool growers. Purchasing power throughout the world has increased slowly among the mass ot people, and the position ot wool has been seriously assailed by substitutes, especially artificial silk. Moreover, there will be a larger wool clip in Australia next season. The fact that large stocks of wool are being held up .’ii Australia will make values all the more certain rather than to stabilise i lie prices, because wool buyers are always apprehensive of these stocks being suddenly realised by weak holders. The B.A.W.R.A. wool was held with Government funds. Wool accumulations now are heLd by private indivuiun.s, which is a very’ different position.” Another writer says: —■•“Sellers have certainly some rights in determining the prices of their own commodities, but any artificial or excessive propping of values is always to be regarded wtn suspicion rather than confidence, unless there is some justification for it. it is generally felt at this, the manufacturing end of the wool industry, that prices of raw material have been to hiogh for real prosperity, and this undoubtedly is causing the limitation ot consumption of the more expensive grades.” FRUIT MARKET.

Though it is somewhat early to attempt an accurate forecast of the coming Australian apple- season, importers are inclined to take a favourable view of the outlook, based on the knowledge that stocks in store in the United States and Canada are estimated at only about three-fifths of the quantity at this time a year ago, so there should not he so many left to compete with the Australians when thye begin •to arrive here in about the second week of April. Apple importers are receiving numerous offers from Australia and New Zealand for shipments on f.o.b. terms, but generally the prices asked are, above London ideas. A few West Australian Dunns. Jonathans and Gleopatras have been pvfrchased here at 10s 6d f.0.b., but these appear to be the pnly transactions effected.

The Germans are again making inquiries in all , directions regarding apples, but inasmuch as they are asking for fruit to be sent to them on consignment, there is nothing doing, for German credit is still too dubious a proposition. Scandinavian buyers are also asking for consignments. BUTTER MARKET. There was quite a boom in the butter market at the beginning of this week, a strong demand forcing prices up 10s. but tile inquiry fell off on Thursday and yesterdav the market closed dull at about. 4s below top price. The reason for the sudden advance was apparently due to the Continent, which took about 20 000 boxes. Germany, France, and Belirium all competing. Ireland als-o took a fair quantity. Another factor was the. demand for Home buyers, who had been abstaining for some time, in view of large prospective supolies of Australian and New Zealand, but apparently tliev held off too long, and wore compelled to buy this week. BUSINESS NOTICES. R. P. Morrissey and Co. will sell by public auction to-morrow (Tuesday), at 1.15 p.m., household furniture and sundries on account of a client who is leaving the district. An entrv of 4000 sheep is advertsed bv Newton King Ltd. for the Uruti sale on 20th inst. Uruti sales are noted for the good classes of sheep that are yarded at them, and, furthermore, the sheep are strong, being all off high country. Buyers farming in open country should attend this sale.