CORN MARKET.

Otago Witness, Issue 1478, 13 March 1880, Page 6

CORN MARKET.

The New Zealand Loan and Mercantile Agency Company reports under date July 16th regarding grain, as follows : — A review of this market and of the circumstances by which it has been affected during the past year reveals as its two most prominent features the failure of the wheat harvests in Western Europe and the corresponding increase of supplies from America. Of the former it may bo said that the Continential yield was generally insignificant, and that in Great Britain it was the very worst known for years. Of the latter, events have shown that the large breadths of land put under wheat cultivation last year have returned full crops, to the emolument and further encouragement tho American farmer.

The disastrous results of the last two harvests in England have naturally been aggravated by the competition to which English wheats are exposed from foreign supplies ; and although the growth of cereals 5n ihis country mil probably continue to be the main occupation of the agriculturist, it is evident that ihe business must be carried on under ltvrgelymodified conditions. A tenant farmer giving £2 per acre for his arable land, pays every year in rent as much as the American freeholder pays for the fee simple of his farm, while, in addition, ho Ss burdened ■with the constantly-recurring expenses of improving and fertilising the soil, from which his American rival is, with the vast area at command, almost ■wholly free. It is true that much of the land henceforward to be devoted to wheat-growing in the United States lies far back from the coast, and that its carriage to the shipping ports is consequently a costly matter; but this is only temporary, and in a few years the railway systems now in operation and in contemplation will 'probably have made cheap transport of grain a fact throughout the States. Looking at the matter in this light it is impossible to doubt but that for years to come America must and will be the leading contributor of cereal produce to the English market, and to such markets of the Continent as may stand in need of additional supplies. This being the case her wheats come into competition not only with those grown here, but quite as strongly and directly with those shipped to this centre from Australia and New Zealand. Having regard to this it is manifest that the Colonial fanner must look upon the American wheat-growers as his most formidable rivals ; with an almost unlimited tract of country to work in, and with the energy and determination to work it ; that every year larger and larger breadths of land will be sown and produce larger and larger crops ; and that every year the cost of growth and transit will in all probability decrease. To keep pace with this increase of production and diminution of cost— or, in other words, with the lower laid-down value of the wheat in European markets— is a task to which Colonial farmers must vigorously address themselves if they would hold their own in time to come. Australian and New Zealand wheats arriving in this country since July last have experienced the full benefit of the enhanced values ensuing from the shortness of our own crops. During the later months of -thfr year prices have beeh considerably influenced by .speculative purchases ; but on the whole it may be conceded that the market has been genuine, and that the bulk of the demand was for trade purposes either ,»t Home -or abroad. Of the Australian wheats those camples grown in Victoria have given much satisfaction j but those from Adelaide exhibited in many in.fltances a decided falling off both in quality and dresisiog. Evidences of slovenly husbandry wore fre.quently apparent, the grain plainly showing that the fioil had been badly tjlled, and that the &eed wheats v/ere degenerating, farmers who fail to pay attcnlaon to such matters cannot expect their produce to (compete satisfactorily jn thjs market. New Zealand shipments teave generally come forward in good (condition, the -chief exception to the rule being those per <2ity of Quebec, many of -which were badly damaged by soa-wafcer. The wheata themselves, of great variety of type and class, were, <?n the whole, well-grown, bright, plump, and healthy,

combining, in certain cases, both colour and strength Perhaps the best of all have been the "Talavera" and "Red-chaff Pearl," and next to these "Hunter's White." These descriptions seem to thrive admirably in the soil and climate of Now Zealand. In a few instances, however, we have detected some of the unfavourable symptoms noticed in the Adelaide wheats ; not many, but still sufficient to interfere with their sale. The market opened in January with 51s as the top price of Australian, and 45s New Zealand. At that date heavy failures were occurring in California as the result of speculations in wheat cargoes, and it was expected that many of those cargoes would be the subject of forced realisations. From January to July there Avero occasional alterations in value, but not on average more than 3s per quarter. In the latter month, when it became apparent from the backward condition of the English crop that a poor harvest was inevitable, speculative purchases were made on a largo scale for home consumption, and prices advanced 4s to 5s per qr. There was scarcely any further variation until the end of August, when Australian and New Zealand wheats were both quoted at the same price— 50s per qr. After that date a series of further speculative transactions led to an excited market, and these being supported by a strong trade demand, prices 1 touched 63s for Australian, and Cls to 62s for New Zealand. Those were the closing rates of the year on a quiet market. Grain was then being held in large quantity in , the United States by a "ring" in New York, at prices which prevented its profitable shipment to this country. The total quantity of foreign wheat imported into London in 1879 reached 2,855,128 quarters, against 2,481,111 quarters in 1878. The stocks of wheat and flour in port on 31st ultimo were 483,680 quarters wheat, and 52,857 barrels and 107,515 sacks flour, against 308,131 quarters, 131 barrels, and 46,153 sacks at same date in 1878. The importations of foreign wheat into the United Kingdom during 1879 were 13,700,340 quarters, against 11,494,995 quarters in IS7B, and 12,499,128 quarters in 1877. The total deliveries of English wheat in the United Kingdom are calculated at 8,088,496 quarters, as compared with 8,567,024 quarters in 1878, and 7,772,344 quarters in 1877. Since the beginning of the new year some amount of weakness has been apparent, and prices have not been fully maintained. The publication of the granary stocks, which were larger than had been anticipated, produced a feeling of depression in the "spot" markets, and forward operations have been cautiously entered upon pending the issue of the American combination above alluded to. In the meantime, cargoes arriving at ports of call can only find buyers at about 2s 6d per quarter below the rates current a month ago. A considerable business in Australian wheat of the new crop has been done, January-February shipments being placed at 56s 6d to 57s 6d by iron vessels, and 56s to 56s 6d by wooden ships— both c.i.f. These prices, howovor, could not now be realised, and to effect sales, probably 2s per quarter less would have to be accepted. For cargoes of the old crop on passage there is a little inquiry on Continental account at 56s to 56s 6d U.K., while an arrival off coast, the Mizpah, 3731 quarters,! rom Port Piric, was sold on the 2nd instant at 58s 7id c.i.f. for Leith. The Chile, from Timaru, arrived at Queenstown on 9th inst., is offered at 60s, but buyers are unwilling to pay that price at present. To-day's quotations, ex granary, are as follow : — South Australian wheat . . 59s to 60s per 496 lbs. Victorian do .. 60s to 61s „ New Zealand do .. 54s to 59s „ Australian flour .. .. 38s to 43s per 280 lbs. New Zealand do .. .. 36s to 41s „ Supplies on passage from all sources are now estimated at 2,053,270 quarters, against 1,674,450 at same date last year. Subjoined is the usual list of arrivals since date of 1 our last issue :— Sacks wheat. Durham, s.s., Melbourne .. .. 398 Benares, Port Chalmers . . . . 19,542 Himalaya, Port Lyttelton.. .. 5,546 Orari, Port Lyttelton -.. .. 483