WHEAT MARKET

New Zealand Herald, Volume LXXI, Issue 21859, 23 July 1934, Page 7

WHEAT MARKET

OUTLOOK FOR FUTURE AUSTRALIAN OPTIMISM OVERFLOWING SILOS [FROM OCR OWN CORBKBPONDKNT] SYDNEY. July 1-1 It is a remarkable commentary on modern economics that the price of flour in Australia should rise while the wheat silos and the, country railway sidings are overflowing with wheat for which there is no jnarket. ' v Yet such are the actual facts. Prices of wheat Jiave never been lower than they are to-day, yet in recent'; months the price of flour in Australia! has been increased by £1 a ton — one rise of 10s and two rises of ss. These increases have been made in sympathy with slight advances in the price of wheat overseas. The master bakers are now considering A.n advance.-' in the price of bread, and should they decide in favour of this there is bound, to bo a public outcry. This will be an added embarrassment for the Federal Government during the election campaign about to be commenced.

It is months since there has been t aliy animation in the Australian wheat,i market, as most of the holders have,, shown a determination to wait until,, there is an improvement in prices. If; authorities on the subject are to bo believed their patience will soon be' 7. rewarded. The news from overseas this, week has been most encouraging, r The advances recorded range from Gd ■ to 2s 10d a quarter for wheat cargoes.

Some of the New South Wales growers, to "meet the market" on levels have had to accept as little a#; Is 8d or Is 9d a quarter: the prospects for wheat there is optimism throughout Australia, and those ' who have made a careful study of the ' world position say that there is solid ground for it. Australia is in an excellent position to profit from the rise ~recorded this. week in oversea? prices, which equals . from Id to 3d a bushel. Of a total harvest estimated at 171,000.000 bushels for 1933-34 there arc reckoned to be in the Commonwealth approximately 46,000,000 .bushels available for,, export.