COMMERCIAL.

New Zealand Herald, Volume XXXIX, Issue 11949, 25 April 1902, Page 4 (Supplement)

COMMERCIAL.

New Zealand Herald Office,

Thursday evening. The month of April has been remarkable for the most rapid changes in the value of many of the staple products of the colony that we have ever ©cen Instances are fairly numerous of individual commodities that have seen violent fluctuations during the course of a few weeks, but during this month the striking feature has been that the change has been so general almost through the entire list ot grains and other produce.

Commencing with the most important grain, wheat, which has so often formed a heavy addition to the exports, it was long ago seen that this season there would be none to send away, however strong inducement might be held out at* the shape of cheap freights, but the estimates of crop in Australia, as published during the summer, did not lead one to suppose that there would be anything approaching a famine in these parts. Indeed, so far as New South Wales was concerned, it was openly stated as late as February 1 that there would be a surplus of 9,000,000 bushels for export, presumably for the United Kingdom, and for any of the neighbouring colonies that were short. On the strength of the assumed correctness of the estimate from which these figures were taken prices were not at all inflated, end the returns for tho port of Sydney up to March 30 show that the export of breadstuffs was equivalent to 1,412,643 bushels ol wheat more than up to the same date last year. Suddenly a change is announced, and simultaneously hero and at Adelaide, Melbourne, and Sydney prices rapidly advanced, resulting in several vessels on the other side unloading their cargo of wheat, which was ready for London, for sale on the local markets. There must bo something wrong with tho system under which these estimates are formed when all the colonies deplete their stocks of wheat by export to London at almost nonpaying prices, necessitating subsequent purchase from America. As it is, there are large quantities of flour on the way already, and we have been informed that for several mail steamers ahead all the available space is booked for flour for New South Wales.

The. local flour market has changed more rapidly during the last few weeks than it would have changed by the ordinary operations of the wheat market, on account of the price being previously kept below its proper level through the severe competition between the local mills and the Southern combine. About half the advance to the present value ol £11 5s in sacks represents the change in the market value, and the other half represents (he advance that would have been registered months ago, but lor this competition. By-products are at a correspondingly high level, the present price of sharps, £6 5s ex store, being most unusual. It is extremely difficult to buy even at that figure, as all the mills in the South are short. Bran has also advanced this week. Fowl wheat showed signs of a weaker market a short time ago, when it was realised that the bad weather at harvest would throw a lot of inferior grain on the market, but since it has been found how short the whole crop is, and what a quantity has been actually destroyed, and not merely damaged, the market lias become strong. In our usual weekly article in another column of this issue we show the situation in oats. In this the first estimate of the crop was about two-thirds that of last year, and this estimate will probably bo found too high after the damage, that the crops have sustained in the South. One of the most noticeable advances since last mail, although one that has been long expected, is in maize. It las been recognised that with so little of last season's crop left in the Bay of Plenty prices must advance as soon as Sydney required any, the only difference of opinion being as to how soon the fearful drought in Australia would necessitate their drawing upon us. Once the orders began to come in the price took an immediate jump, and subsequent shipments to Sydney have been measured, not by requirements there, but by the limited supplies here. It is estimated that there is not much left from last season, and the new crop is not ready yet for shipment, although bookings arc already reported for later delivery. Potatoes and onions have both been affected by the strong demand from Sydney and the bad weather in the South, the latest f.o.b. quotations being £5 for potatoes and £7 10s for onions.

It has been known for a long time that peas were a small crop in Canterbury, and the small stocks have been so drained for export that prices have considerably advanced.

Everything in the fodder line, for which we largely depend on the provincial supplies, has materially advanced. Chaff is being imported from the South, as the local stocks do not permit of sufficient supply. Hay, both meadow and oaten, and also straw, arc at higher rates than we. have seen for a long time. The cartage contractors have grasped the situation and announced a substantial advance in rates for carting. This will make a considerable difference to the cost of handling grain and other heavy stuff. The short stocks of fodder and consequent high price has caused an unusually heavy demand for seed dun oats for early growth. The season is favourable for this crop getting a good start, and the same, of course, applies to grass, so that, there should be abundance of feed for stock in the country.

The mild drought experienced during the latter part of the summer curtailed considerably the output of butler, which would otherwise have shown a heavy increase over last year. Prices have hardened accordingly, and in sympathy with the tone of the London market, which is peculiarly favourable to New Zealand butter. Australia is drawing on us at an earlier date than usual, on account of tile drought there, and the heavy requirements for South Africa, and we look for better prices this winter than wo have seen for many years. Cheese has made a decided advance, owing to heavy export demand.

Hams and bacon are now more plentiful. The price remains about the same, and factories cannot reduce the price this season owing to the high rates for pigs.

The fruit season is almost over. We arc glad to know that there is a prospect of the canning) of fruit being more systematically carried out in this colony, which is so eminently suited for fruit culture.

This lifts been a heavy season for seed merchants, showing that more land is being laid down in permanent pasture. Since last mail the Government have allotted sections in a large block of land in the, Kawhia district, which badly needed opening up. Wo are inclined to question the wisdom of the tenure offered to selectors, but any tenure seems better than keeping the land shut up and buying already improved land in other districts. We have already mentioned that the opinion is fairly general that much of the land will be found equal to the famous butterproducing Taranaki land, and that view is supported by the proportion of farmers from that district who have taken up land in the new parts.

Our expectations regarding the flax market have been realised, and prices remain about the same. Present rates are decidedly remunerative, and their continuance has led to the resumption of milling where operations had been suspended. On the West Coast of the South Island there has been some excitement in the rush to start fresh mills. Here the supplies arc temporarily shorter owing to bad weather.

Since last mail the committee of the Federal Parliament has announced its decision with regard to New Zealand timber, the result being that (he ; mall sizes, which were to Ire dutiable, arc now to be admitted free. This will be a heavy blow to those merchants who laid in heavy stocks in anticipation of this duty, ami have not lwcn able to realise on them, as wo understand that Sydney, Melbourne, and Adelaide arc full. So far as we arc concerned, the new conditions will be better than wo have ever had, for those of the Australian Stales which before the days of the Commonwealth imposed duties on our timber, ; n common with the imports from other parts, will now admit ours free against timber from America and elsewhere. There can be little doubt that the lever in bringing about this change has been the absolute necessity for Victoria importing kahikatea. for making butter-boxes. Locally the timber trade is good, and some districts continue to show a rapid increase in the number of dwelling-houses. Export to Dunediu is quieter. The award of the Arbitration Court, which takes effect from April 18, will make a considerable difference to the cost of working timber mills, and another advance in the price of timber is not improbable. Bush labour has been high for a long time, making logs dear. Tile increasing scarcity of kauri will probably cause the price of this timber to be maintained. In the southern part of this island they have overdone the timber-milling business, and it lia.s been found necessary to curtail the output by working only five days per week. The decision of the Federal PostmasterGeneral, which has just been announced, to admit our letters at one penny without extra charge, will bo much appreciated by correspondent* on this side the Tasman Sea, and greatly facilitate business with the Commonwealth. Their tariff is far from satisfactory to us, but they have lately removed the great stumbling-block in the way of the timber trade, and the fact that they have, now given way over the postal rates seems to indie a, desire not to unnecessarily interfere with business transactions.