COMMODITY MARKETS AND TRADE.

Manawatu Standard, Volume LVII, Issue 18, 19 December 1936, Page 4

COMMODITY MARKETS AND TRADE.

THE WOOL MARKET. (By “Penloo.”) Research work on the production of a substitute ior wool has engaged the close attention of laboratory chemists for some time past and several substitues have been announced. In Germany and Italy, forced by necessity, tho chemists there have produced artificial wool, but whether this is as good as represented remains to be seen. In Germany, fabric manufacturers are compelled to use a certain quantity of the artificial product in conjunction with sheep's wool. It is reported from the united States that tne Du Pont laboratory has produced artificial wool of exceptionally high quality. It is admitted, however, that it will be ten years beiore the synthetic fibre can compete with real wool. It had been recognised lor a l:ong time past that a suoetitute ior worn would, sooner or later, be produced, just as rayon is a substitue for silh and cotton, but this need not cause alarm. The sheep s wool will always have the preference over the substitutes. The latter, however, will have a market if it is cheap enough. it the prices are reasonable the people with small incomes would buy it. Margarine as a substitue for butter has been on the market for the past thirty years, and yet has not affected the sale of butter. Margarine acts as a brake on butter prices. There are in all markets what may be termed marginal consumers. When the price of Muter drops, many who have been obliged to content themselves with margarine find that their incomes Will permit them buying a pound or two or butter a week. The price of butter would i all because the supply would be in excess of tho demand. As these marginal consumers copo into tne market the excess supply of butter is gradually consumed, arid the price of butter rises. When this happens the marginal consumers drop butter and revert to maragine. And so it goes on. It will be the same with wool and its substitutes. Me cannot expect high prices for butter in these times, and that will probably- be the case with wool. Ihe line of action is to endeavour to produce so that low prices will yield a profit. DAIRY PRODUCE. We have now available the official figures relating to exports of dairy produce for tne first three months o the dairy season. The quantity ol butter exported each month compareued with last year shows as under:

935,032 762,197 Notwithstanding a decrease in the shipments this season of lG.Glocwt. as compared with last season, the estimated value is £173,4,35 more. MEAT PREFERENCE. The Live Stock Industry Bill which the Imperial Parliament is to deal with next month lias reference to meat. The Argentine is to submit to a duty as agreed to, recently, but meat from the Dominion is to be admitted duty free. The Argentine s mutton and lamb shipments are not taxed. The position doeß not affect us to any great extent, hut Australia gets a chance of developing her chi led meat trade. Argentina will export less lieef and veal, hut that country may be forced to export more mutton and lamb to make up for contraction in beef shipments, that is the South Ainerican Republic may be obliged to give greater attention to tho improvement of her flocks and aim at exporting liign. grade mutton and lamb. Tnut is one of the possible developments of the changed economics. The Dominions are to observe orderly marketing, which may mean anything. But interest in New Zealand centres in dairy produce, and the projected bilateral treaty the Minister of Marketing (Hon. W. Nash) was to enter into Britain is more than self-supporting in respect of liquid milk, and tho surplus must bo made into butter and cheese, and for this purpose the Milk Marketing Board has been erecting factories Britain will probably not place, a duty on dairy produce from the Dominions but may restrict imports I > any case it is important that we should recognise that it is scarc £ ] y worth while expanding the production of dairy produce. There is practically but one market overseas, and that market is obtaining increasing supplies from home production, dairying industry in New Zealand has reached the peak, and we must investigate the' position to find out what is necessary to be done now. \ve are satisfied guaranteed prices will not relieve’ the position.

1936 1935 cwt. cwt. August i September 248,049 October 13/ ,0/0 140,989 140,171 242,723 497,895 535,883 The declared value of the butter which is not the guaranteed price shows as under: • 1935 £ 733,756 September lit»ll,i_5t UcLober 761,38o 782,324 1,409,680 3,105,962 2,985,760 Thus, it will be seen that -while the shipments this season show a shrinkage of 37.988 cwt., the estimated monetary return was £120,202 greater. Submitting cheese to the same comparison we get the following: 1 1930 1935, cwt. August u 2,6u6 October .1^30, 0/4 Se-pcember ... 113,boJ 95,003 95,858 93,043 207,289 283,904 There is a shrinkage of 16,615 cwt. as compared with last year when the shipments appear to have been more orderly. The values ot the cheese shipments for the three months show as under: — 1936 1935 £ £ August UriM September 40 1 ,182 October ... 3o4,i8U 226,774 239,228 290,195