THE BREADSTUFFS AND PRODUCE MARKETS.

Otago Witness, Issue 2666, 19 April 1905, Page 8

THE BREADSTUFFS AND PRODUCE MARKETS.

Friday.

The most sensational news of the week, so far as the wheat market is concerned, is the New York cable stating that the Washington Department of Agriculture reports the general average condition of American wheat as 91.6. Upon this basis the New York Produce Exchange estimates the crop at 479,787,000 bushels. This figure, if confirmed, is calculated to have a depressing influence upon the world's markets, as it is largely at variance with previous estimates. The Washington bureau's primary estimate of the winter wheat crop was only 335,000,000 bushels, based upon th© fact that! the acreage sown was only 31,150,000 acres, as against 32,800,000 acres in 1904, when the yield was only 332,935.000 bushels. The bare possibility of a winter wheat crop in America of 150,000,000 bushels more than, the estimate cannot fail to have an influence upon prices. The position is well illustrated in the following final estimate of th© two last American wheat crops, with the acreage : —

The astounding thing about the New Ycrk Produce Exchange's estimate is that, in addition to the decreased acreage, the Washington Bureau's December report made the average condition of winter wheat lower than it had beep at that date for years — viz., 82.9, as against 86.6 in the previous year. Then, again, the December condition of wheat is seldom improved upon, and the May condition is generally decidedly below that in December, as the following comparison shows : —

Ihls. only possible explanation of the present surprising situation is that what »3 technically known as the " winter killing" — i.e., the difference between the area sown and the area harvested, and which last year reached the enormous total of nearly, 5.C00,000 acres, or more than 10 per cent, of tho entire crop, will this year be conspicuous by its absence. It has been generally assumed that owing to the high prices ruling the American wheat market would pursue a course quite independent of Europe right up to the end of the present season. Now, however, all sorts of developments are possible, and for the next few weeks the trend of events will be closely watched.

The present heavy shipments from the Argentine, together with large prospective supplies from India (where the new wheat season commenced on April 1), and the estimated large winter wheat crop in America have ali conspired to deaden the London market. Cargoes are neglected, and sellers are quoting 31s 6d for March and) April shipment without business being reported. The total quantity of wheat and flour afloat for the United Kingdom as at April 11 was 3,940,000 quarters, as against 4,105,000 quarters last week; and for th& Continent 1,600,000 quarters, as against 1.665,000 quarters, a decrease of 65,000 quarters. These figures compare as follows with the corresponding period in previous years : —

The Australian markets show a tendency to ease slighely and this week's quotations range from 3s 3d Melbourne and Sydney, to 3s 4d Adelaide.. The Australasian reports as follows on the Melbourne market : —

Notwithstanding the weakness of ?he London market, the demand from shippers ha 3 been sufficient to maintain the local market on the basis of 3s 4d alongside ship, and a. moderate business has) been done. The demand, however, has not been general, ancl some shippers are unwilling to continue buying except at reduced limits. The market, in fact, has been sustained at a level above that corresponding to the prices obtainable in London by the fact that arrangements previously entered into have enabled some shippers to continue paying full rates.

There has not been much animation in the local wheat market during th© past three weeks, and the tendency of prices is to ease. Millers have reduced their buying limits, and will not offer more than 3s on. trucks for prime milling lines, and even afc that rate will only purchase for immediate requirements. On the other hand, holders generally are not inclined to ]et much wheat ■go at the prices offering, so that a kind of stagnation has ensued. Several influences are at work which render it difficult to accurately forecast tdie future of the market. Ir> the first place, it is not yet possible to estimate what percentage of the new season's wheat is damaged : but the impression! prevails that, especially in Canterbury, a goodj^art of Ihe crop will have to be sold as fowl feed. At the present time for every pr-im© sample offering there are two or three

Eaiwrs of Poultry should use Kixiirq ahi> Blair's Game and Poultry Meal, -which, is composed of the best ground bones and shells, specially prepared to meet the requirements of the fast-increasing poultry industry. It ia made up in D4lb bags, at Is 3d each. Ask joux storekeeper iqx it*

vliieh at best can only pass for medium Trilling. Although this tends to drag down the market by establishing a wide range of quotations, yet it may ultimately help to improve the value of all really prime lines. It is this consideration which is leading naany growers to oonsi \er the advisability oi storing instead of selling, and once stored the wheat may be held for a better market. On the other band, rhe possibility of a slump in London has to be considered, for this would at once affect 'the Australian zearket, and might bring the importation of flour from the Commonwealth into view. Quotations, -which are nominal, being usually met by counter offers, are as follow:— Red chaff 2s 9d and Tuscan 3s, on trucks, Temuka ; pearl, 3s Id. and Hunters 3s to 3s 2d, f.0.b., Lyttelton ; mixed lines of velvet, Tuscan, and red chaff, 3s on trucks, Oamaru ; prime Tuscan, 3s Id on trucks, OamaTii.

The Ohristchurch Press reports as follows

There is no alteration to record regarding the local grain markets, and generally they are in a rather stagnant condition. Dealings in wheat are limited, and the very great variations in the samples this season account for tHe range in prices. In some quarters it is considered that for anything that is not of prime quality the quotations should be from 2s 6d to 2s 9d, whilst prime milling Tuscan should be at 3p 2d. A sale of 2000 bushels of Tuscan is reported at 3s Id, but this is generally considered exceptional. Pearl has sold at 2s lid, and Hunters at 2s lOd. Generally prime samples sell readily, but the major portion of the wheat on offer is little better than whole fowl wheat.

There is no change in the "ehidk wheat market, and good whole fowl feed is quoted at 2s lid, ex store. There is no great demand at this price, and with the large quantities of this grade coming forward a decline may be expected.

Some little agitation has been caused in the local flour market owing to the landing in Invercargill of a small parcel of flour from Australia, and this to some extent explains the drop of 10s per ton in the local quotations. Sydney flour is also being quoted in Dunedin at £7 155, f.0.b., or equal to about £9 15s landed, but so far no sales are reported. The reported failure of the negotiations which have been in progress for some* months past to bring about an arrangement as to price between the Flourmillers' Association and the Auckland mills may possibly lead up to interesting developments. The New Zealand Flourmillers' Associations tariff remains unaltered at the kite reduction as follows: — Sacks, £9 10s; 100's, £10; 50^ £10 ss; 25's, £11. The shipping- price is £9, f.o.b.

"There is considerable scarcity of offal, but prices are unchanged — viz. : Bran, £3 5s for local orders and £3 for shipment ; pollard, £5 per ton for both local and shipment orders. A quantity of bran has recently been shipped for the East for fodder for Japanese horses.

The oat market is inclined to firm, partly owing to the small supplies coming forward, and partly owing to shippers operating at full prices. The quality of the samples coming forward is, on the average, very good, and there is a prospect of the grades being higher than for several seasons past. Of course a good deal still depends on the weather, for there is a quantity of grain an the soirfah yet to he got in. Good B grade Gartons are at the moment worth, from Is 7^d to Is Bd, ex store, and Is s^d is being paid for B grade, and up to Is 7d iof"A grade, at sidings, Gore.

Oatmeal is unchanged at £10 per ton, and pearl barley is quoted at £14 to £14 19s per ton.

Our Temuka correspondent reports as follows : —

During the week the wheat markets have remained in. an absolute lifeless and stagnant state, millers an<3> merchants absolutely refusing to operate at prices asked by farmers ; consequently only small parcels of the very primest lines have been placed during ths past week. Stack thrashing is now becoming general, and during the next month or two large quantities of wheat will have to be handled and sold, or stored. At present it appears evident that the latter will be resorted to unless holders are prepared to face actual values and accept lower prices and make business possible. The quality of the wheat — results of stack thrashing — are in most cases • vast improvement on the beat stook thrashed. There - is still a large quantity of secondquality milling, and for this there is practically no sale other than at whole fowl wheat prices. Sales of prime Tuscan and velvet have been made at 2s lid and Hunters at 2s 9d near country stations. At these prices there is only a poor demand; while for offconditioned lines 2a 6d would be the value. With the downward tendency of the London tind Australian markets, buyers of large parcels are likely to be hard to find. The following sire current prices: — Wlieat, 2s 9d to 3s at j country station. Oats: Canadians, Is 7d to Is 8d; Gartons, Is 6d; duns, Is 7d; Danish, < Is 4d to Is 53 at country stations. - ,

The quality of the Derwents coining forvard is on the improve, and, with anything like a guarantee of sound, keeping sorts, the outlook for potatoes would be 'distinctly encouraging. There is no difficulty in placing weli-conditioned lines. Derwents are quoted at £4- 15s to £5 per ton, ! arcl white sorts at up to £5 10s. ,

There has been a little speculation going on in cheese, but the prices paid for AprilMay make are scarcely warranted by the Home market. Judging by the comparatively small shipment sent Home by the i last steamer, there is more than enough cheese in the colony for local requirements, and no other outlet except London is at piesent visible. The butter export market is also firm, and up to lOd per lb is being asked by factories.

In the local market butter is scarce, and prices have improved. Current quotations are as follow: — Farmers' pate, 6d to 7d; separator, 8d to ; bulk salt butter. 7d to 8d ; bulk separator, 9d ; first-grade factory (bulk, )10d; pats, lO^d. j The local cheese rnarkct is unchanged, ! and factory mediums are selling at 4|d to sd. '- j

Esjgs are scarce, and in good demand at Is 7d to Is 8d per dozen for fresh. There Is an inquiry for preserved eggs at Is 2d to Is 3d per dozen.

The demand for poultry continues fair for the time of year. Current quotations are: — Roosters, 3s to 4s; hens, 2s 3d to 2s 9d ; chickens, 2s 6d to 3s 6d per pair; | •ducklings, 3s 3d to 3s 9d ; geese, 4s 6d to j ss ; turkeys — gobblers 9d to lOd per lb, hens •|d to sd. - ,

Pigrs are still in good inquiry. Baeoners mi 4-d ; overweights and underweights, 3d. Hams are quoted at 7gd to Bd, and bacon fct 7d fro 7£d.

Chaff is in fair supply, and in good detnand at up to £3 15s for prime oaten sheaf. Saturday. The possibilities of tho Otafip Central for

grain growing are strikingly indicated by the quality of the samples of wheat and oats to hand this season from that district. Some very fine samples of Tuscan wheat have been shown from Omakau and Lauder which are remarkably clean and hard, and possess many of the qualities of the best Australian wheat. One small line of Tuscan from Omakau was sold for seed at the record price of 3s 8d per bushel.

Some very fine samples of oats from Middlemarch have also been shown. They are A grade Gartons, well filled and of capital colour, showing no signs of weather. As soon as the area tinder crop increases the Central Otago harvest will become a real factor in the grain market.

iVinter wheat, Lust .. IVinter wheat, area .. Spring wheat, bush .. spring wheat, area .. Eotal wheat, bush Fetal wheat, area 19U4. 332,935,000 26,865,855 219,464,000 17,209,000 552,399,000 44,074,000 19Uo. 393.867,000 32,510,510 237,955,000 16,955,000 637,822,000 49,465,000

Area sown .. Area harvested 1904-5. 1903-4. 1902-3. 1901-2. 31,150 32,800 34,070 31,970 ? 28,000 32,510 28,580 Loss %-n .» ? 4,800 1,560 3,390 December condition May condition .. 82.9 86.6 99.7 86.7 ? 76.5 92.6 76.4 Loss per cent. ? 10.1 7.1 10.3

1905 1901 1903 1902 Afloat for United Kingdom. Quarters. 3,940,000 ' 3,725.000 2,230.000 3,405,000 Afloat for Continent. Quarters. 1,600 000 1,545,000 1.795.000 2,395,000 American Visible Supply. Quarters. 5,662,000 6,170,000 8.071,000 8.76'JL000