MONEY AND MARKETS

Otago Daily Times, Issue 20450, 3 July 1928, Page 9

MONEY AND MARKETS

GILT-EDGED STOCKS DULL. BUTTER POSITION ABNORMAL. CHEESE MARKET STRONG. (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, June 30. The Stock Exchange has not yet entirely recovered from the set-back described a fortnight ago following the Wall Street (New York) slump, but a distinctly better feeling is in evidence, especially in speculative stocks, which were most affected. These show general improvement. Gilt-edged and other investment stocks, however, are very dull, although prices have been maintained. This is largely accounted for by the usual end of the half-year money stringency. A revival of business may be expected next Yveek, when a period of relatively easy money conditions is likely to begin. The butter position can only be described as abnormal, for prices have advanced steadily throughout June, although the demand has been somewhat spasmodic and at no time really heavy. As a rule prices are at their lowest at this time of the year, but, thanks to the shortage of arrivals of New Zealand butter and the unfavourable weather largely reducing production in all European countries, we have a firm market, with trades generally anticipating a maintenance of the present firmness. The cheese market is also strong. The production in Canada has not reached expectations, and .English supplies are decidedly short. The consumptive demand has been good, but possibly may not be maintained as the retail price of New Zealand cheese has been raised to 13d per pound. Although there is no improvement in the Bradford wool market as regards new business the reports of the satisfactory result of the Brisbane wool sales caused topmakers to take a more sanguine view of the raw material position and to revise the opinions formerly prevalent regarding the outlook for the London sales which open on July 10. As a writer in a Bradford newspaper says, Brisbane has supplied a muchneeded index to the wool position, and though it is discounted in some quarters as being somewhat negligible, the fact remains that topmakers are very hopeful about raw values being maintained at Coleman street. Accordingly they are more inclined to hold out for late rates.

The Yorkshire Observer published an interesting account of the progress made by the Briitsh Wool Research Association in carrying out the important work of standardisationn of the term “ quality ” as related to the spinning power of wool. Already it has been ascertained that not only the usual attributes of fibre, namely, staple, length, crimp, elasticity, arid diameter —are concerned in, its spinning ability, but the shape of the fibres themselves seems to have a profound influence. Another important point is the discovery of a non-tarry sheep-branding fluid which scours out completely. This has been tested by large numbers of sheep breeders throughout the country, and all reports are highly favourable. —Australian Press Association.