Manawatu Herald. SATURDAY, DEC. 6, 1902. The Hemp Market.

Manawatu Herald, 6 December 1902, Page 2

Manawatu Herald. SATURDAY, DEC. 6, 1902. The Hemp Market.

Home buyers are not exhibiting much desire to purchase New Zealand hemp for forward deliveries and thus some millers fear that the bottom is tumbling out of the market. This ia nonsense, and it is simply surprising that those who are engaged in the manufacture of our local fibre display so little energy in acquiring strong and reliable information for themselves. Once there was a Flax Millers’ Association, but whilst good prices were offering millers left it to take care of itself, which it apparently has not. One or two cablegrams judiciously placed would explain the whole matter in a clear light, for so much depends upon the position of the market for Manila hemp. A cablegram to some reliable business house in Manila should clear the matter as to what sort of accumulation there is at the port. The importance of this information is so great that we have applied to the Government to obtain it '>n behalf of this most important industry, and from what they have done previously we look hopefully forward to their doing this much. The fibre reports, which the Agricultural Department has been courteous to forward us, came to an end in April, and we have no information how the Manila market has been since, except by the choppy cablegrams'of the London market. These short cables are very useful up to a certain point. They give the actual prices of the week, but, in most instances refrain from quoting stocks held in the market of both fibres, so that the possible increase or decrease can not be guaged, but it would have seemed wisest, in the interests of the large fiax industry, if the Flax Association devoted some of its funds for monthly cables of both the London and Manila markets. If hemp really fell much we may be sure the Flax Association would once again arise, perhaps too lata. This time, we are glad to say, we do not think is coming for many reasons,, and we would ask our readers to keep in mind the facts we shall state so that they can place themselves in the same position that we are in to estimate the probabilities of the future market.

On Wednesday last the cablegram from London stated “ The hemp market is dull. The price of New Zealand hemp, * Good fair Wellington,’ grade on spot to-day is £B2. The price for Jannary-March ship ments, ‘ Good fair Wellington,’ grade, is £27 10s. Manila hemp, on spot to-day, fair current grade, £88.” It is at this point that we are lost without. rba fibre broker’s reports and the statement of both the stocks of New Zealand and Manila fibre at Wellington, London and Manila. If the price of N.Z. hemp has been increased, as it has been assarted, but about which we take leave to doubt, by the shortage of Manila, the fact that this week the price of N.Z. hemp has risen to within £S a ton of the price of Manila hemp hardly suggests an expected large stock of Manila being soon received. Amongst prices, quoted for Manila at its port of shipment, extending over a number of years we notice that the prices are quoted lower for November and December than for a time previous, and that the quotations for January to March have shown a big increase, so that this will be probably so again for the coming three months. The fact that Manila is capable, to a point and price, of a large increase is seen by the fact that on the Ist January, 1900, there were only 2,148 bales on hand, but on the Ist January, 1901, the stock had risen to 250,950 bales. In the year 1900 Manila was shipped away to the number of 634,475 bales, which shows that in the year 1900 some ,885,425 bales were produced. This information would have been very disquietening had we known it in 1901, for as we have said the stock on hand was 250,950 bales; but we find that with the year’s manufaofacture, (of which we have no accurate figures, but was about 740,000 bales) all that was left on the Ist January, 1902, was only 103,173 bales, showing that the sales of 1901 exceeded the product of the district for that year by 147,777 bales. We know also that the stock of Manila on hand on 15th March, 1902, was only 66,042 bales, a mere trifle to the previous stocks, and that was swelled to that number by 14,057 bales increased production for the three months.

By the above it will be seen that however large the stock on hand might have been on the first day of January for the last three years, the demand has kept full pace with the supply, notwithstanding the very farge increase in the production of New Zealand fibre at satisfactory prices. The quotations in London for September and Ootober 1901 was £2B and £3l a ton for N.Z. hemp, a price almost obtainable locally this year. It appears to ua extremely unlikely, judging by the prices paid in London for Manila this week, that any appreciable difference will be,found to the stock on hand at the end of this year in Manila, and that we shall witness, as in the past, prices hardening in January. The reports show clearly that Manila is shipped away very heavily in the first three months of the year, and for the last two months of the year stocks are gradually increasing. We give these facts, taken from reliable sources for the consideration of those interested in the flax industry, without the least wishing that any hopes of increased prices will be obtainable, should be raised. We hold present prices are paying well enough and we should regret to see any further rise as that only encourages the manufacture of flax to be looked upon as a gamble instead of a legitimate industry, but we give the information to justify our opinion that the price of flax is not at all likely to fall much, if any.