THE RURAL WORLD.

Otago Daily Times, Issue 21976, 10 June 1933, Page 3

THE RURAL WORLD.

FARM AND STATION NEWS.

OTAGO DOG TRIALS Sheep dog trials yet to be held in Otago under the auspices of the Provincial Sheep Dog Association are as follows: — June 10.—Ngapara. June 14, 15, 16.—South Island championships at Mossburn. New Zealand Wool Business Dalgety and Co. report offerings and sales of wool in New -Zealand for 11 months ended May 31 as follows:

Offerings during the month of May were 1807 bales, of which 1801 were sold. Increased Shipments Exports of wool from New Zealand during the 11 months ended May 31 show an increase over those of last year of 72,803 bales, and ■were as follows:

705,566 638,369 , ‘lncluding out ports. During the month of May 38,516 bales were shipped. Clean-up in Australia Although the 1932-33 Australian wool season will not end till June 30, already more wool has ..been shipped from Australia this season than for the full period of the previous season, and the shipments are greatly in excess of the exports for 1930- and 1929-30. The total shipments for 1929-30 amounted to 2,461,077 bales, for 1930-31 to 2,639,277 bales, and for 1931- to 2,745,478 bales. For the 10 months’ period ended April 30, 1933, the Commonwealth wool exports reached 2,729,114 bales, and the May shipments, particulars of which are not yet compiled, would amount to about 250,000 bales. The countries to which wool has been sent during the 10 months’ period July 1 to April 31 this season are shown below, and shipping figures for a similar period last season are given for comparison:— Wool Exports from Australia.

Sidney Average Price* The ninth series of Sydney wool sales of the 1932-33 season will’open on Monday, and during the four days approximately 39,660 bales will be offered. Following are the monthly average prices for wool realised in the Sydney market from July to May (inclusive), compiled by the National Council of Wool Selling Brokers:— Per Bale.

Fine Wool Values Australian wool prices are of value to New Zealand so far as they go, but they do not go far, because the " fine ” crossbreds of the Commonwealth are of a lugher quality'than the fine crossbreds of New Zealand, and the London market has an even stricter use of the term “fine” wools than is understood in Australia. The production of merino wool in all Australia for 1931-32 was 84 per cent, merino and 16 per cent, crossbreds and other strong wools.

The raisins of the price of fine wools, however, must ultimately have a beneficial effect on the market for New Zealand coarse wools; but for the moment and in the absence of sales in the Dominion and the interregnum in the London selling season the most conservative indication of the market for New Zealand wools is given in the prices for Bradford tops for wools of the kind most produced in New Zealand, and during the past month these have been as follows:

A Trade View Reviewing conditions in the wool and produce market at. the annual meeting of shareholders of Younghusband, Ltd., in Melbourne last month, the chairman of the company (Mr G. A. W. Stewart) said that record wool clips had been obtained in Victoria and Riverina last sea-

By UtrsTictrs. Items of interest to those engaged in agricultural and pastoral pursuits, with a view to their publication in these columns, will be welcomed. They should be addressed to “Rusti cus,” Otago Daily Times, Dunedin.

son. The market had opened in October at a lower level of prices than that of October, 1931. It had improved in January only to fall back later because of the crisis in the United States, and of the want of confidence in Europe. Toward the end of March there had been a better demand at high prices except for coarse grades of crossbreds. Britain had taken most of the offerings, with Europe and Japan next. Australian mills had given useful support to the market. “As to the future,” said the chairman, “it is pleasing to note that, with a record ‘dip now going into .consumption abroad, the market should show a hardening tendency, and the latest reports from the London sales now in progress show continued' strength and point to their closing at higher levels than tile opening rates. Values for most commodities have begun to improve, and it is hoped that they will continue to do so until our staple products may be placed on a payable basis.

THE WHEAT HARVEST PROBLEM OF SURPLUS WHEAT BOARD’S REVIEW Nature, as usual, has dealt kindly with New Zealand this season, for threshing returns for January to April show a total of 9,056,000 bushels of wheat, with the very high average yield of 38.06 bushels per acre. Over the past few years the New Zealand wheat harvests have been reported as follows: No, Bushels

The above returns, when read side by side with those for New Zealand during the past six years, will show how high New Zealand stands in the scale of wheat production per acre. . THE SURPLUS PROBLEM. The Dominion has produced so much wheat this harvest that it does not quite know what to do with it. Therefore recourse must be bad to export of the surplus over its own requirements. Mr W. W. Mulholland, chairman of the Wheat Purchase Board, is of opinion that as the threshing returns approach completion, so the high per acre yield becomes more definitely established, and he forsees a possible record production when the final returns are available. In the official organ of the New Zealand Wheatgrowers’ Co-operative Association. Mr Mulholland states that with such abundance of production the “ Wheat Purchase Board will have a much heavier surplus of wheat to care for than it originally anticipated, a good deal of which will have to be exported. The course of overseas markets is therefore of immediate concern to every wheatgrower, and I have no doubt the upward trend has been noted with satisfaction,” THE WORLD’S MARKET. Incidentally the approximate prices current for wheat at per bushel in various markets a month ago and to-day were as under: —

The wheat area harvested in New Zealand this year was 294,000 acres, or 5 per cent, to 7 per cent, above domestic requirements, but the surplus is attributed mainly to the higher average yields and only to a minor extent to the area. Last year the area was 268,750 acres. An average yield would have produced a surplus this year, and any substantial addition to the area this season would make a surplus very probable next harvest. “It is important,” states Mr Mulholland, “ before deciding to increase the area in wheat to inquire as to the probable effect on prices of a substantial surplus. “If farmers arc prepared to grow wheat at this year’s price, 3s 4d f.0.b., then they may plant as. much as they please, as .the price is unlikely to be lower next year even if the surplus is considerable. That may be taken as being as nearly certain as anything can be in these uncertain times.” He thinks it is probable that wheat will be worth 3s 4d per bushel free on board for export next year, providing the present rate of exchange New Zealand on London of 25 per cent, is maintained and that the export business is handled by one marketing organisation on a nonprofit basis. He puts the present rkfe of exchange ns representing an extra value' on New Zealand wheat of 8d to 9d per bushel MARKET PROSPECTS. Mr Mulholland takes a very hopeful view of the future of the wheat market based on the upward direction of the markets, the winter wheat failure in the United States, and reported failure in Russia. “In any case,” he observes, “we are probably witnessing the start of a general rise in commodity price levels, which apart from all other influences may have carried the price of wheat some distance upward by the time our 1934 crop is on the market.” Although 3s free on board, sacks in, is mentioned as.the price of New Zealand wheat for this season, the 'Wheat Purchase Board charged the miller '4s 7>'d per bushel, and the price to-day is about 4s 8d to 4s 9d. This permits progress payments to growers of 3s 3d free on board. A surplus fund was created with the difference and this fund will be used to

Butter Advances Raised Advances made by British importing firms to exporting dairy factories have been raised as from June 1 to 7|d per lb for butter and 4d for cheese. The advances made this season have been as follows: — _ Butter. Cheese. ' Per lb. Per. lb. d. d. September 1 10 5 October X 9* 5 November 1 .. .. .. 8} 5 December 1 7’} 5 January 1 7} 32 January 24 8 4J March 1 72 3J April 1 0 3 May 1 6 3 May 15 7 3J Forward business in butter for stocks held in New Zealand and end of the season make is reported at lOd per lb, and in some' cases 10Jd. Buying at these prices, however, is by no means general. Inquiries for forward shipments of cheese appear to have ceased.

The Wheat Purchase Board’s estimate, for 1933 is a harvest of 10,878,000 bushels' showing a yield of 37 to 38 bushels to the acre. Mr Colin MTntosh, of the North Canterbury Farmers’ Union, put it at 38J bushels. The Dominion’s own needs are 8.500,000 bushels, less importations of flour equal to 600,000 bushels, making a total of 7,900,000 bushels, and leaving a surplus of 3,000.000 bushels. Average yields per acre in other wheatgrowing countries for 1930 are as follows:

buy surplus wheat from growers which the millers were unable to take and to balance the loss on wheat to be exported, “ or, in other words, to stabilise the price all round,” as the board puts it. New Zealand millers have already bought and paid for 5,500,000 bushels of wheat.

EXPORT PRICE MYSTERY. Mystery enshrouds the price at which New Zealand wheat for shipment to China and elsewhere has been sold. Some estimates—absolutely unofficial —put it at 2s per bushel, and this, plus exchange at 6d or even 8d to 9d, as Mr Mulholland estimates that benefit to be, price is likely to be still well under the 3s 4d per bushel paid to farmers in advance. But no information as to the price at which this wheat has been sold or is likely to return when it is finally disposed of has been published. OUTLOOK FOR BUTTER

HOPEFUL AUSTRALIAN VIEW FUTURE LOOKS BRIGHTER Private advices received in Sydney regarding the present position and future prospects on the London butter market are- more encouraging than for many months (writes L. G. A. in the Sydney Morning Herald). Speculative buying and a rapid deeding in Continental production, coupled with an anticipated restriction of European output in the coming season as one of the results of the British duty, have effectively checked the depressing ’ effect in values of the heavy stocks held in store in Britain, which are estimated to total not less than 25,000 tons. .Consumption also has been maintained at an unprecedented high level, having in the period Oetober-March, 193233, exceeded the 1931-32 figures for the same period by no less than 11,001 tons. In these circumstances it is considered that the stock position no longer justifies serious anxiety, though it is admitted that it still presents difficulties which must be overcome before any considerable permanent increase in the values can be looked for. An analysis of the British trade figures for the Oetober-March period discloses that foreign import restrictions have been the principal cause of the difficulties experienced this season by Dominion producers. Previously re-exports have relieved the British market of considerable quantities. During the current period reexports only amounted to 2789 tons, as compared with 16,873 tons during the same period in 1931-32, a decline of 14,084 tons. As the total British imports for the six months ended March last increased by 8179 tons, there was a total increase of 22.263 tons to be consumed in Britain. Of this half was, actually consumed, thei increase in stocks at the end of March amounting to only 11,124 tons.

During the recent discussion of the proposals to restrict exports from the dominions, it was repeatedly suggested from London that failure to reduce Ans<s tralian exports would intensify and prolong the slump in values, with disastrous results. It is now stated, however, that the decision of the Australian and New Zealand Dairy Boards in conference not to agree to restrictions has been generally accepted in London, and that the clarifying of the position has been the principal cause of the recent sharp recovery of values. This supports the view taken by the Australian dairy authorities, and is a tribute to their grasp of file situation.

An interesting and encouraging point in the London message is the mention of an anticipated restriction of European production in the coming season. During the recent visit to Sydney of the New Zealand Dairy Board’s delegation, the chairman, Mr Dynes Fulton, expressed to the writer the opinion that Australian and New Zealand butter producers would shortly enjoy definite and substantial benefits as a ■result of the duty of 15s per cwt imposed by Britain on foreign butters under the Ottawa agreement.

Mr Fulton mentioned the disadvantages under which Danish and other European producers'laboured in comparison with conditions in these dominions, and expressed the opinion that they would find it extremely difficult, if not actually impossible, to effect any material reduction in production costs. With butter at anything approaching its present value, he said, the British duty was a heavy burden, and would probably force Continental producers to reduce their output in the hope of raising prices. . This view seems already to have been to some extent confirmed, a fact which should give Australian dairy farmers some reason to look hopefully for better returns next season.

11 months. 10315. 11 months. 1932. Towns. Bales Bales Bales Bales Offered. Sold. Offered. Sold. IiiTercarglll .. 49.003 44.091 47.701 37.375 Dunedin 00.478 05.071 05,299 84.109 Timaru .. .. 35.500 33,768 34.081! 28.0.14 Christclmrch 105,802 101,459 85,439 80.310 Blenheim 31 27 43 24 Wellington .. 121,000 105.391 100.728 82.144 Wanganui .. 70,802 59,349 57,438 42,023 Napier .. .. 103.038 86.417 80,589 64.409 Gisborne .. 2.893 2,251 2,422 2.152 Auckland 68.209 59.225 71.353 40.434 028.052 558.749 881,098 471,520

11 11 months. months, 1933. 1932. Bales. Bales. Invercargill .. .. .. 64,708 45,440 Dunedin 79,093 Oamaru 3,797 Tiniaru 41,154 Christchurch .. .. 95,439 Blenheim 8,308 Nelson 2,218 1,470 Wellington .. .. 124,603 Wanganui . . .. 62,884' 46,443 New Plymouth* ,. .. 3,178 3,528 Napier* 87,320 Gisborne* .. .. 39,293 40,173 Auckland* .. .. 60,990

1933. 1932. To Bales. Bales. United Kingdom 856,469 898.578 Japan ..' 597.772 577,969 France 398,226 349,965 Germany ., .. .. .. 341,706 245,898 Belgium .. . 273,768 200,867 Italy 101,807 177.575 Roland 19,781 788 Switzerland .. ., .. 7,970 Spain .. .. ... .. 8,599 5,382 United States America 7,398- ' 33,750 India 6,147 3,832 Netherlands .. .. .. 5,820 2,131 Sweden 5,065 6,377 Canada 3,944 1,780 Czechoslovakia .. .. 2,369 1,051 Denmark 599 350 Hongkong . . .. .. 509 492 Other countries .. .. 1,125 439 2 ,729,114 2.506,730

Greasy. Scoured. Greasy and Scoured. r f S. d. £ b. d. f s. d. W.. .. 6 15 0 13 5 5 11 15 1 August .. 10 13 3 13 13 3 li 11 5 September 11 19 4 12 19 11 12 0 9 October .. 11 7 2 14 4 4 11 10 8 November 10 15 1 12 14 1 10 16 10 December 10 14 7 12 4 8 10 16 0 January 11 6 2 12 6 9 11 7 1 February 11 2 3 10 15 1 11 1 11 March 11 2 4 10 18 5 11 2 2 April 10 8 9 11 7 4 10 10 2 May .. .. 9 19 1 13 18 11 10 19 10 11 months 11 1 9 12 15 3 11 4 3 July Per lb. Greasy. Scoured. Greasy and Scoured 11.0 August .. 8.0 14.0 9,3 September , , , , 8.9 13.0 9.1 October .. 8.5 14.3 8.8 November 8.1 12.9 8.3 December M 8.1 12.5 8.3 January 8.7 12.3 8.8 February • • 8.7 10.5 8.8 March .. 8.9 11.2 9.0 April .. , # 8.3 11.9 8.5 May .. 7.6 14,0 9.0 Eleven months 8.5 12.0 8.8

May May May May June 4. n. 18. 25. 1. lb. lb. lb. lb. lb. d. d. d. d. d. Seventies .. 25 2G 26 27 27 Sixty-fours .. 23} 24 24} 26 26 Sixties .. .. 22 23 23} 24 24i Fifty-sixes .. 18* 181 19 19 19 Fifties .. .. in 12 12} 13 13 For'i - -sixes .. 8} 9 9} 9} Forlns .. .. 8 8} 9 9 9 Forty-sixes and forties counts stood at S1 cl and 8d per lb for some months bcfore they advanced about the middle of May last.

Threshings. of bushels. per acre. 1927-28 .... .. 9,541,444 36.56 1928-29 .... 34.00 1929-30 ... .. 30.68 1930-31 .... .. 7,579,153 30,44 1931-32 .. .. 24.49 1932-33* .. .. 38.00 * January to April returns.

Countries, Bushels per acre. Australia United Kingdom .. . United States .. . . .. 14.27 Canada • . .. 15,91 Hungary . 20.07 Netherlands Belgium , % .. .. • France j.. , . . . . ,. 17.54 Rumania India Argentina

May 3. June 3. Per bushel. Per bushel. New York, spot .. 81? cents 82? cents 8. (1. s. d. S-vdney .. .. . .. 3 I 3 2i Melbourne .« \ 3 ‘3 Adelaide 2 11 New Zealand (milling) .. .. .. 46 4 8 PRICE TO GROWERS.