RECORD WHEAT CROP

Otago Daily Times, Issue 21982, 17 June 1933, Page 3

RECORD WHEAT CROP

AVERAGE OVER THIRTY-EIGHT - BUSHELS REVIEW BY CHAIRMAN OF . BOARD. Threshing returns for January to April show a total of 9,056,000 bushels of wheat with the very high average yield for the Dominion of 38.06 bushels per acre. Over the past few years the New Zealand wheat • harvests have been reported as follows: — No. Bushels

•January to April returns. 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. 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. THE SURPLUS PROBLEM. The Dominion hag produced so much wheat this harvest that it does not quite know what to do with it. Therefore, recourse must be had 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 foresees 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.” I 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;—

May 3. June 3. Per bushel. Per bushel. s. d. s. d. New York, spot .. 81f cents 82| cents Sydney 3 1 3 2-j-Melbourne 3 1J 3 3 Adelaide 2 9 2 11 New Zealand (milling) ..4 6 4 8 PRICE TO GROWERS. 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 are 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 bo taken as being as nearly certain as anything can, bo in these uncertain times. He thinks it is probable that wheat will bo 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 non-profit basis. He puts the present rate of exchange as 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 hr the United States, and reported failure in Russia. “In any case,” he observes, “we are probiibly 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 hoard, itch* in, in mentioned as the price of New Zealand wheat for this season, the Wheat Purchase Board charged the miller 4a 7Jd per bushel, and the price to- r dsy is about 4a Sd to 4a 9d. This permits progress payments to growers of 3s Sd free on board. A surplus fund was created with the difference and this fund will -be used to 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 2a per bushel, and this, plus exchange at fid or even 8d to 9d, as Mr Mulholland estimates that benefit to be, the price is likely to be still well under the 3a 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 haa been published.

Threshing. of bushels. per acre 1927-28 .. .9,541,444 36.56 1928-29 . 8,822,864 34.60 1929-30 1. . 7,239,356 '30.68 1930-31 .. 7,579,153 30.44 1931-32 .. 6,582,698 24.49 1932-33* .. 9,056,111 38.00