THE RURAL WORLD.

Otago Daily Times, Issue 21994, 1 July 1933, Page 3

THE RURAL WORLD.

FARM AND STATION NEWS.

1933-34 WOOL SEASON

ROSTER OF .SALES

Wool sales have been arranged as follows for the 1933-34 wool-selling seasou in New Zealand:— Place. Date. Auckland .. .. November 27 Napier December 1 Wellington .. .. December 7 Christchurch .. December 12 Timaru December 16 Dunedin December 20 Napier January 6 Wellington .. .. January 11 Auckland .. .. January 15 Wanganui .. .. January 19 Christchurch •• January -6 Invercargill .. January 31 Dunedin .. .. February 5 Timaru February 9 Wellington .. .. February 15 Napier February 20 Wanganui .. .. February 23 Christchurch .. March 2 Dunedin •. «• March 7 Invercargill .. •• March 9 Wellington . • .. March 19 Napier • • • • ■ • March <-3 Auckland .. .. March 27 Christchurch .. 4 pn ., Dunedin .. .. April 10 Wanganui .. .. April 17 Napier April 20 Wellington .. . • April 24 The April sale dates are tentative only, subject to revision, and will be held only if sufficient wool is available.

Quotas in Operation British restrictions on meat importations are reported from "Valparaiso to have caused the slaughter by Chilean ranchers of 250,000 sheep from which the only marketable product is tallow. The figure appears to be rather a high one, and the Chileans seem to have overlooked other valuable by-products besides tallow (says the Dominion)._ Nevertheless, foreign producers of mutton and lamb must be beginning to feel the squeeze of the quota adopted at Ottawa. In the first quarter of the current year British imports from foreign sources were to be reduced by 10 per cent., in the second by 15 per cent., in the third and fourth by 20 and 25 per cent, respectively, rising to the maximum restriction of 35 per cent, in the second quarter of next year, when it remains fixed.

It is probable that Chilean sheep owners are already face to face with the problem of what to do with surplus fat sheep, and are solving it by slaughter. Their exports of frozen mutton and lamb ar& compared with New Zealand’s_ trade, comparatively small. The value in 1930 was' £780,000 and in 1931 £490,000. Flocks increased from 4,000,000 to 6,000,000 head between 1925 and 1930. Though the industry is, therefore, about the size of that in the Wellington province, it is subject to the same restrictions proportionately as its much larger competitor in Argentine Patagonia. On both the Chilean and Argentine side of the Andes many of the sheep ranchers are Englishmen or Scotsmen, financed by British capital. Some New Zealanders have also settled on this southern spur of South America, which periodically imports stud stock from the Dominion.

Effect on New Zealand New Zealand has, therefore, more than a remote interest in the reported reaction from the Ottawa agreement. It is true that the Chilean ranchers farm the sheep principally for their wool, the mutton and lamb trades not having been developed so. far as in this country. Yet the meat was an important product of the sheep, bringing in about half the sum netted from wool. To have these receipts reduced by a stiff percentage cannot be a palatable experience in lean times. New Zealand should not forget that she has been exempted from this restriction because she is a member of the British Empire. She can make practical acknowledgment by giving British goods effective preference.

Commonwealth Turnover Returns issued by the National Council of Wool Selling Brokers of Australia show that from July 1 to May 31 sales of wool in the principal selling centres of the Commonwealth totalled 2,807,332 bales, which realised £31,771,445. _ Conlpared with the corresponding period of the previous season, the transactions showed an increase of 224,768 bales, and the amount realised an increase of £3,226,678. The average secured greasy and scoured was £ll 6s 4d per bale, or 88d per lb, compared with £ll la Id or S.6d a year bfefore. The greasy average was 8.6 d ner lb, and 8.5 d 12 months previously. The following figures indicate the number of bales sold, the amount realised, and the greasy and scoured average obtained during the 11 months for five seasons: Bales Amount Average sold. realised, per lb. £ d. 1928- .. 2,533,447 55,239,311 16.8 1929- .. 2,204,097 29,445,814 10.5 1930- .. 2,384,729 26,781,527 8.8 1931- .. 2,582,584 28,544,767 8.6 1932- .. 2,807,332 31,771,445 8.8

Wool for Russia

Some weeks ago cable advices stated that Russia was likely to resume purchasing wool in Australia. Recently the Textile Mercury and Argus, Bradford, reported that “ one of the reasons why Germany has been buying more extensively in the raw material markets this year m comparison with last year is that Rossian purchases of wool and tops have been made almost entirely in Germany. Favourable credit terms were obtained from German sellers.” The exports from the country, however, do not indicate any special movement in business to foreign customers. Germany may have made sales to Russia, but from January to March this year her foreign sales ot manufactures were less than during the same quarter of 1932. Her_ exports ot tops showed a decrease of 55 per cent., yarns 22 per cent., fabrics 8 per cent., and wool 70 per cent. Those figures do not indicate any revival in her export trade due to good orders from Russia. Turkey has benefited by orders from the latter large quantities of Turkish mohair having been purchased by Russian operators. Wool Values No developments have occurred abroad to disturb buyers’ confidence in the future level of prices. In Yorkshire many authorities are optimtistie regarding rates ahead and the maintenance of trade in recent improved, volume is anticipated. News from Japan has again been favourable. prices for silk showing an addi-

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tional rise. In Europe, turnover in tops and yarns has Apparently business has not been hindered by the advances in prices latterly experienced. That fact is encouraging, as the rises in merinos have been substantial during the past five weeks. The following figures show the quotations for average tops in Bradford during the first week in May, when the Sydney market closed, and recently:—

Wool Production per Sheep Though skilful breeding has developed the wool-producing capacity of sheep in Australia from an average cut of sAlb per head for sheep and lambs in 1880 to over Sflb in a favourable year, seasons have a decided effect on the quantity grown. The figures herewith show the weight of wool shorn per head from the sheep and lambs in New South Wales and Queensland durinir ciuht years:—

* Estimated. It is rather remarkable that the average weight per head in Queensland has been so well maintained considering the dry seasons experienced in central western and northern areas of the State. Generous weights shorn on the sheep in the southern half of the State have offset the lighter weights shorn in the droughtaffected areas. New South Wales will certainly show a reduced production per head during the coming shearing.

Australian Wool Production As a result of the drier season experienced during the past year it is expected that the coming Commonwealth clip will show a decrease of 225,500 bales. The sheep will cut lighter weights of wool, and some losses of stock have been experienced. It is, therefore, of interest to note the quantity of wool produced in the Commonwealth during the past 20 seasons;— 1913- L 966.576 1914- 1,775,000 1915- 1,484,000 1916- 1,722.000 1917- 1,907.331 1918- 2,030,916 1919- ' 2,045,912 1920- 1,635,080 1921- 1,941,136 1922- 1,918,002 1923- 1,779,788 1924- 2,094,880 1925- 2,377,866 1926- 2,712,438 1927- 2,673,000 1928- .. .. .. .. 2,862,877 1929- ’2,867,000 1930- 2,798,000 1931- 3,051,000 1932- *3,168,000 1933- *2,942,500 * Estimated. The figures indicate the remarkable development in production which has occurred. The highest figures have been recorded during recent years, when prices have been on most unfavourable levels. Good seasons have enabled them to be recorded, but landholders have endeavoured to depasture the maximum number of sheep in order to keep their wool returns as high as possible. It is estimated that 2,675,000 bales will be available for sale in Australian selling centres during the coming season. This season’s offerings to the end of June, including 150,000 bales carried over at June’ 30, 1932, will total about 2,964,000 bales. During 1931-32, 2,682,113 bales were sold; 1930-31, 2,521,361 bales; 192930, 2,471,596 bales; and 1928-29, 2,625,061 bales. Practically no wool will be carried over at the end of June this season. The quantities available for sale in Australian centres during the coming year will, therefore, show substantial reduction on this year’s figures. Waikoikoi Farmers’ Union A meeting of the Waikoikoi branch of the New Zealand Farmers’ Union was held last week. Mr D. M’Call was in the chair. 18 members being present. Correspondence was read from the provincial secretary from the Blue Star Shipping Company and Mr G. Richardson. The provincial secretary wrote asking if the branch was agreeable to paying its proportion of expenses of a Flock House boy. Members or the branch were favourable, but as there was some discussion as to what the branch’s proportion was, it,was decided to write to the provincial sefcretary asking him for the necessary information, and to finalise the matter at the next meeting. Mr J. Gumming gave a very interesting address upon county matters, and explained the position in regard to the basis of the county rates lor the coming year. The meeting concluded with a hearty vote of thanks to the speaker. THE WOOL MARKET SMALLER QUANTITIES AVAILABLE NEXT SEASON’S ESTIMATES It is estimated that 2,675,000 bales will be available for sale in Australian selling centres during the coming season. This season’s offerings to the end of June; including 150,000 bales carried over at June 30, 1932, will total about 2,964,000 bales. During 1931-32, 2,682,113 bales were sold; 1930-31, 2,521,361 bales; 1929-30, 2,471,596 bales; and 1928-29, 2,625,061 bales. Practically no wool will be carried over at the end of June this season. The quantities available for sale in Australian centres ■ during the coining year will, therefore, show a substantial reduction on this year’s figures. A decrease of approximately 700,000 bales is likely to be seen in the total quantity of wool which will be available for sale in Australian, New Zealand, and South African markete, state Winchcombe, Carson, and Co., Ltd., of Sydney. Of that quantity about 500,000 bales will be merino. In the Commonwealth the receipts of new wool at the stores at the close of this season are approximately 2,954,000 bales, and the estimated total for 1933-34 is 2,675.000 bales. Australia carried over 150,000 bales last year, and will have no carry-over this season. Therefore, the quantity available at Australian centres is likely to be 429,000 bales less during the coming 12 months. New Zealand carried over 246.000 bales last season, and only 75,000 bales this year [the local estimate is about 65,000 bales]. South Africa is considered likely to show a decline of 100,000 bales in production during the coming season. The combined shortage makes up the decrease of 700,000 bales quoted. The United States clip, of which 60 per cent, is merino, showed a decrease of about 84,000 bales in 1932 and will probably display further reduction this year. The decrease is pot confined to merinos.

The output of coarse wools is dropping, the Russian, clip having declined about 000,000 bales.

The appreciation of values recently seen is very welcome in view of seasonal conditions, state Winchcombe, Carson, but Australia generally should not be carried away by it into the opinion that the wool industry is on the high road to the prosperity of boom times. It is possible that wool will get gradually dearer than it is at present, but in 1928-29, the last of the good selling years, the clip of this rouijitry averaged 16-1 cl per lb. We are justified in being more hopeful of the market than for some years, but gradually ascending values to moderate > levels is more probable, and would give better hopes for permanence than a rapid, extreme appreciation. It took over three years for the wool market to descend to its lowest point in June, 1932, and it will not. fully recover in a few months. SHIPPING FREIGHTS

REDUCTION SOUGHT IN AUSTRALIA NO AGREEMENT REACHED Shipping freight rates on meat, dairy produce, wool, fruit, etc., were discussed at the annual conference of the Australian Overseas Transport Association at Sydney last week, but no agreement was reached on the question of reductions. Representatives of the various industries concerned, in their request to shipowners for readjustments, stressed the existing disparity between rates from New Zealand and Australia for mutton,, lamb, pork, veal, butter, and fruit. They urged that Australian producers and exporters were entitled at least to equivalent terms. In answer to the assertion of shippers that liner freight rates from Australia (in sterling) were now 53 per cent, above pre-war level, and that freights from South Africa were 55 to 165 per cent., and from New Zealand 18 to 58 per cent, lower than those from Australia, shipowners pointed out that port and other charges in Australia were still as high as ever, and that, as a result of tariffs and exchange, ships were still making the outward voyage to Australia with only a small proportion of their cargo space occupied. They admitted that the Ottawa agreement had caused some improvement in imports, but asserted that they were still much below the figures shown before the introduction of the Sciillin tariffs.

Shippers pointed out that shipowners had been substantially assisted by the work of the Australian Overseas Transport Association in “ rationalising ” tonnage by forecasting approximate seasonal requirements in the way of cargo space in each exporting industry. Shipowners’ representatives replied that that had been a requirement insisted upon when freights were stabilised at their present levels. Mr C. W. D. Conacher, representative in Australia of the Blue Star Line, said the agents for the line had advised the Meat Exporters’ Association that they were satisfied that they could carry chilled beef from Australia to London in good condition, provided they had cooperation of the works in carrying out the preliminary preparations which their experience had proved necessary. There was no doubt that if they were granted equality in treatment with other shipping lines in the Australian trade they would be able to effect a reduction. Meat exporters, who are pressing for similar freight rates to those operative in the New Zealand trade, state that when New Zealand contracts expire on August 31 further reductions in freight from that Dominion are likely. 1 . They expect to benefit to a" similar extent. 1 Questioned regarding the position after the expiry of existing contracts on June 30, exporters said that, pending other arrangements, they assumed that present freight rates would prevail. They would not indicate whether they intended to negotiate with the Blue Star Line or any other individual shipping line for better terms. It is understood that the Overseas Shipping Representatives’ Association lies agreed that rates of freight now obtaining will be continued in July, and that shippers are free in the meantime to ship their produce in whatever way they wish. If negotiations break down altogether, the Federal Government may intervene. The chairman of the council (Mr F. H. Tout, M.L.C.) announced at the close of the conference that he would, as usual, report fully to the Government, COMMODITY PRICES A GENERAL IMPROVEMENT MARKET CONDITIONS AND MOVEMENTS The latest information in regard to the wool and wheat markets ie encouraging. The Bank of New Zealand has been advised by its London office that the prospects for the next series of wool sales in London are favourable, the expectation being that the prices at the last series will improve by Id to l|d for merino and fine crossbred, |d for medium crossbred, and for coarse. The Sydney sales set a new standard, and there is little doubt that it will be maintained, if not improved, seeing that the worldwide policy of the producers of meeting the market throughout the slump has led to increased consumption, which in turn has absorbed practically the whole of the supplies of raw material. For the sheep farmer the outlook ie considerably brighter, for even though a rise still leaves much to be desired, it represents a decided percentage advance upon the average price of last year, and is as much as can reasonably be expected in one step. In regard to the American activity in the wheat market, allowance must be made for the possibility of the proposal for limiting production being as stimulating a factor as the estimated decline in the American harvest through drought conditions. It must be remembered, however, that the excited trading has embraced “futures,” in tv Inch the price has been carried to over 99 cents. Thus “dollar” wheat, which has been regarded as satisfactory in the past, is anticipated by interests which know their business. A good deal of emphasis has been placed upon the existence of surplus stocks as a cause of the unprecedented slump in prices, but the official statement of the experts of Argentina, Australia, Canada, and the United States, who met recently in Geneva, throws new light on the matter. “To Judge from the disastrous price level it might be thought,” rung the report, “ that there was an enormous over-production. But the annual sur-, pluses do not represent the difference in quantity which might be expected in view of the remarkable drop in prices. . . . The actual over-production is comparatively small. The wheat crisis lakes the form of an accumulation of -exportable stocks concentrated in the United States and Canada.” It is now estimated that the exportable surplus at the commencement of the new American season will be 25 per cent, below that of last year. Hence the quotations for future deliveries are in advance of the improved prices of to-xlay, an encouraging portent which wheat shares with other commodities, the significance of which was indicated by Mr Coatee at Hawern.

70’s merino .. .. May. d. 25 June. d. 27 64’e merino .. .. 23i 26 60's comeback ., 22 24i 56’s fine crossbred ., 18| 19i 50’s medium crossbred Hi ■ 134 46’s coarse crossbred Si 10

N.S.W. Q’land lb. lb. 1925-26 8.1 6.99 1926-27 .. .. .. 8.8 6.60 1927-28 7.5 7.24 1928-29 S.8 7.31 1929-30 7.8 7.52 1930-31 7.9 7.67 1931-32 8.7 7.60 1932-33 .. .... *8.0 *7.50