COMMODITY MARKETS AND PRICES.

Manawatu Standard, Volume LIX, Issue 18, 17 December 1938, Page 5

COMMODITY MARKETS AND PRICES.

THE WOOL MARKET. (By “Penloo.”) Now that wool sales have been held in both islands, and practically every ciass of wool offered, it is evident that crossbred wool is relatively in greater demand than line wools. / In the North Island most of the wools sold at the three sales already held were of the crossbred description, while in tlie South Island the finer wools were on sale. Crossbreds were up by about a penny per pound, while fine wools were lower. The demand lor crossbreds as already explained is due to that class ,of wool being required lor uniforms, which makes crossbred wool a raw material and a war material. The position of wool is by no means wholly satisfactory, notwithstanding the rise recorded in crossbreds. And the position is easily understood when it is remembered that several of the more important consuming countries, like Japan, Germany and Italy, are unable to buy for lack of funds. A hope growers have is that America will become a prominent buyer in the near future. If the world could settle down to honest trading, and the political tension experienced in the past few months is not revived, there would be a boom in world trade, and prices too would be reasonably good for most commodities, for there is no doubt that there is a considerable amount of under-consumption and this applies to foodstuffs,*as well as to raw materials. THE WHEAT PROBLEM. The last wheat harvest in the Northern Hemisphere yielded a large surplus and growers are laced witn lower prices. In the previous year there was a deficiency, especially in the United States, which liad to import wheat. Agriculturists ought to know by now that the seasons' cannot be regulated, and the yields of grain vary each year. When the available surplus of exporting countries is low and prices are high there are no complaints, but when the output is large and prices fall then there is a cry for relief, and various expedients have been tried, especially in the United States. It is now candidly admitted that neither subsidies, nor quotas, nor acreage curtailment, and price fixing appear to offer any real solution, and they never will for they are political devices planned for political purposes. It was not always so. In the past producers accepted had seasons with good, and recognised that over a period of years the average prices let them out with a reasonable profit. The conditions have not changed, but the views oi producers appear to have changed a great deal, for they now seem to require high prices every year, anv deficiency to be made good to them by the taxpayers of the country.

WONDER WHEAT. It is reported that after 10 years ol research and 1 experiment in six counties in England by the Cambridge, Plant Research Institute, a new wheat has been produced, which promises to have very useful qualities. Tested in 17 trials against that famous wheat Squareheads Master, it has never yielded loss and on an average has yielded 10 per cent. more. The straw is about six inches shorter than that of most English wheats and is (’ ry strong, so that it will stand up in high winds and rains. It is highly resistant to rust. The wheat is claimed to he quite as good as Squareheads Master for breadmaking and is specially well adapted to heavy land. Its one defect at the moment,is that the colour of its grain is not fixed. As soon as consistently white grain is produced the wheat will be tested again for yield and released for commercial production. LOWER PRODUCTION.

For the four months to the end ol October the exports of butter front the Dominion were less by.over 0000 tons as compared with last year, and it is also known that the export of lamb has been less during the period. This shrinkage in production is directly due to the adverse weather conditions experienced for some time past. But whatever the cause the fact remains' that the Dominion is able to export less primary products than was the case, last year, and this, must be kept in mind for it has a considerable bearing on our economic life. New Zealand depends for her national- income upon the sale of primary products in overseas markets. At the moment not only are prices lower, but less also is being marketed. In the production year ended June 30 1935; exports were valued at approximately £01,000.000; there is'now a very strong probability that for the current production year the exports will, not yield more than about £SO 000,000. which brings the national income down to,the level of what it was in '1934. The problem to be solved is. whether the Dominion can maintain-the high standard of living of 1938 on the lower income of 1934.