MARKET SETBACK

Nelson Evening Mail, Volume LXXIII, 12 June 1939, Page 7

MARKET SETBACK

INTERNATIONAL SITUATION SLOW PROGRESS OF ANGLOSOVIET NEGOTIATIONS SLUMP IN WHEAT PRICES [U.F.A.— By Electric Telegraph-Copy rightl (Received 12th June, 0.30 a.m.) LONDON, 11th June. There is no doubt that the market setback, which contributed to the disappointing result of the Australian loan, w’as based on the revival of apprehensions concerning the European situation. Many city businessmen are not impressed with the slow progress of the AngloRussian negotiations; others regret they were ever initiated- Many high-placed persons are maintaining that Russia is so backward militarily and her policy so tortuous that she is unlikely to be of any real assistance to the Western Powers. There is a similar division of opinion over Lord Halifax’s speech. The “Financial News" bluntly declares that the Stock Market disliked the whiff oLappeasement. Others contend that Anglo-German rapprochement must be the forefront of British policy. Wheat prices slumped to the lowest level for five years on reports that the Canadian crop is from 360,000,000 to 380,000,000 bushels, which is the highest since 1932. WOOL CONFERENCE Preliminary meetings of the international wool conference will open at Brussels on 12th June. Czechoslovakia is sending a delegation. Bradford merchants are raising the question of the sanctity of contracts. Italians and Germans are initiating a discussion regarding the definition of the term “pure wool,” which is complicated by the claim that artificial fibres should be regarded as wool. The Italian and German delegates want the fibres classed as wool in order to get the benefit of lower Customs tariffs.

The tone of the Bradford market is improving rapidly. There was a considerable volume of business in tops in the past week. Supplies of crossbreds are not considered excessive. Sellers are reserved despite the fact that prices are in their favour. BUTTER MARKET IMPROVES Butter continues to appreciate and there is every indication of the rise continuing. Confidence appears to have been re-established, helped by speculators who after several months have re-entered the market. The cheese market is firmer, helped by the hot, fine weather.