A BRIGHTER TONE

Otago Daily Times, Issue 23362, 30 November 1937, Page 9

A BRIGHTER TONE

LONDON STOCK MARKETS SPECTACULAR RECOVERY BUTTER PRICES LOWER (United Press Association) (By Electric Telegraph—Copyright) LONDON, Nov. 28. After crashing to the lowest levels of the year the stock markets staged a spectacular recovery and finished the week firmly. It is becoming increasingly difficult to forecast the changes in sentiment. The Economist considers that there is no new reason to account for Monday's collapse. Similarly, it is difficult to rationalise the subsequent recovery. Probably it is partly due to bear covering and partly to the feeling that sound stocks were allowed to slip too far. All the financial authorities stress the importance of better business activity in the United States as a prerequisite of revival. They point out that commodity prices largely depend on the United States.

The London wool sales have not brought any increase of confidence. Dawson and Co., commenting on the outlook, declare that it is overshadowed by the depressing general conditions. Fortunately the stocks of fine wool in Britain are light, and the trade should be in a good position to support values when the wheels of industry begin to accelerate. The immediate difficulty is that orders are not coming in at the same rate as production Everything points to an increase in business in the spring for fine wools, but the outlook for crossbreds, especially lower grades, is obscure; consequently a readjustment of values is coming in the New Zealand season, and it may be drastic. Butter is steadier, with lower prices, but in view of the increased production in Australia and New Zealand the steadiness may be only temporary, especially as the consumption that was lost when prices were higher has not yet been regained. Trade is mainly rand to mouth. Confidence is not yet fully restored, but there is nothing to warrant speculation. Cheese has shown further weakness with a definite absence of inquiry and a poor demand. F. W. Moore, Limited, reviewing the 1937 fruit season, say that the quality of the fruit has been variable. New Zealand apples have not equalled former standards. The pear outlook, which appeared so bright, was vitiated by poor shipments. It is evident that the shipping companies have still to master the carriage of pears. Moores Ltd. suggest that New Zealand and Australian interests should examine the whole pear situation in regard to varieties, packing capacity, the market, and Other Commenting on the outlook for 1938, Moores Ltd. say that it is impossible to regard it with unqualified optimism. New Zealand and Australian fruit will not meet competition with stored English fruit as the British apple crop is light, but competition from other sources is increasing, including the Argentine, Portugal, the Italian Tyrol, and the Balkan States, therefore it is essential that New Zealand and Australian growers should study the requirements of the market and especially not send large dessert apples. 'The popular call is for 2\ to 2Hnch. sizes. Moores Ltd. draw attention to the likelihood of increased competition from America as a result of the Anglo-American trade pact.