THE BREADSTUFFS AND PRODUCE MARKETS.

Otago Witness, Volume 23, Issue 2684, 23 August 1905, Page 8

THE BREADSTUFFS AND PRODUCE MARKETS.

Friday. The most significant item of intelligence to hand during the week is the cable announcement that owing to a threatened famine in Russia M. Kokovcseff has ordered the prevention of an excessive export of grain. It is explained that this implies a prudent restriction, but not the prohibition of grain export. We have several times recently directed attention to the fact that Russia's extraordinarily large shipments of wheat have had the effect of alkying the scarcity of supplies which otherwise would have undoubtedly been felt ere this. It is pretty well known that the war is accountable for Russian merchants rushing their grain to the seaboard, and it is shrewdly es-fcimated that on this account Russia's carry over at the end of the season cannot be as large as usual. This depletion of reserve stocks, added to the reports of crop failures, has evidently alarmed the Russian authorities, and the restriction of export can scarcely fail to have a firming effect upon the wheat markets of the world. The estimate of the American crop will now be awaited with the keenest interest, for should the United States not have a sufficiently large surplus tfor export to enable her to once more influence European pirces, we may look for a rising market instead of the anticipated decline. The position is now one of unusual interest, and all sorts of sensational developments are possible within the next few weeOcs. Some idea of the dependence of Europe upon Russia and America for wheat supplies may be gained from the following comparison of the weekly shipments from August to December in the past three years: — Weekly Average Shipments to Eiurope peom August 1 to December 31.

The total quantity of wheat and flour afloat for the United Kingdom as at August 15 was 2,435,000 quarters, as against 2,585.000 quarters last week, a decrease of 150,000 quarters; and for the Continent 1,550,000 quarters, as against 1,715,000 quarters last week — a -decrease of 165,000 quarters; or a total decrease 'for the week of 315,000 quarters. These figures compare M*ith the corresponding figures in previous years as follows:—

The Commonwealth markets have recovered from the slight decline noted last week, this week's quotations being Melbourne firm at 3s 5d,, Adelaide 3s sd, and Sydney 3s 6d. The Sydney Jfail "reports as follows en. the New South Wales situation : — Millers are still buying from hand to mouth, and holders are showing no disposition to part with their stocks at less than 3a 6d per bushel, which is £d over millers' ideas of value. The whole question of the future values of wheat may now be said to turn upon the prospects of our coming harvest. Conversations with millers shew that they are a'ready calculating the weeks which must intervene before new wheat is available in this State, and are carefully laying their plans accordingly. Much may, of course, happen to upset these calculations. Most certainly Hie stock of prime wheat in the State cannot be large, and although there has been no export of wheat to speak of for .some weeks past, yet flour has been shipped away in fairly large quantities. The Ayrshire took over 1000 tons, and several hundred tons are being shipped by -other steamers. This all tends to deplete" stocks, and if prime milling wheat is as scarce as' statistics seem to indicate millers may yet have to pay more for their supplies. _In considering the Commonwealth position it has to be borne in mind that there are barely four months to go before the new Australian harvest will be in full swing, and that present prospects in the four principal wheat-bearing States are for bumper yields. The local wheat market is quiet, but firm. Millers are not operating to any extent, except for any small lines offering a little below ruling rates. Holders show no inclination to force sales, and last quotations — viz., 2s lid to 3s on trucks at northern stations for prime milling lines — are practically unchanged. Medium milling is offering sparingly at 2s. 9£d to 2s lOd on trucks. Chick wheat is offering at from 2s lid to 3s, ex store, for local orders. Quotations at northern ports have firmed for this class of grain, and 2s lOd f.o.b. Timaru is now the lowest price for good whole fowl feed. An average business is passing in flour, but scarcely up to millers' expectations. The New Zealand Flour Millers' AsscoiatTon's tariff stands unaltered as follows- — Sacks. £9 per ton: 100's. £9 10s; 50's, £9 15s : 25' s, £10. The shipping price is £8 10s f.o.b. The demand for offal has fallen away, and stock*, especially of bran, are accumulating. The tariff stands : Bran. £3 15s per ton for local orders and £3 10s per ton f.o.b. for shipment ; pollard, £4 10s per ton for both local orders and for shipment. Some little, flutter was caused in the oat market during this week by the announcement on the part of the shipping companies of a reduction in the freight to London from 20s to 15s by the Aotea. So generous, however, was the response on the part of shippers both here and in the north t-hiat tn,e space was taken up three or four times over, and the shipping companies promptly put the freight back to the original figure. The one or two firms whioh got in at the lower rate are congratulating themselves upon their good fortune. The reduction, although only temporary, revealed the

fact that there is a considerable quantity of oats in "the oolony awaiting shipment. If is anticipated that the recent reduction ia freights to South Africa will help business in that direction ; whilst, if the restriction of Russia's grain exports be confirmed, the London market ought to improye. On the whole, the outlook for oats is distinctly brighter. In the absence of stocks, busi« ness in the local market is limited. There is a demand for northern ports, but shippers are not able to secure any quantity at * low enough price to induce business. Good B grade are nominally quoted at Is B^d, ex store, but a very little quantity is available at that price. A brisk trade continues in seed cats at from Is lOd to 2s 3d, aocording to quality. Oatmeal is quoted at £10 per ton, an<J pearl barley at £13 to £13 10s. The potato market continues to advance, in consequence of the shortness of supplies, coupled with the rising markets in New South Wales and Tasmania, which preclude all possibility of imports. The i>rire for prime Derwents jumped to £10 at the beginning 1 of the present week, and has gradually firmed until up to £11 per ton has been paid for the small lots.offering. It is confidently expected that the price will touch close upon £12 per ton before another week is past. Reports from Oamaru give the price as £10 on trucks, and estimates place available stocks at a, very low figure. Supplies from Christchuxch are -expected next week, the Canterburymarket being rather lower than in Oamaru ; but Southland is said to be very bare of stocks. Indications point to a strong market right to the end of the season, notwithstanding the lessened consumption whioh the high prices ruling necessarily involve. A. strong feature in the situation is the reports of the shortage in Tasinanian potatoes and the disappointing orop in New South Wales.

The dairy produce export market shows exceptional strength. Butter buying can hardly have said to have commenced for the. season, the only sale re-ported from the north being of a small factory at lO&d. This so fa-r is the limit imposed upon buyers by London houses for February delivery, whilst factories are holding out for 10i, including March make. It remains to be seen whether buyers will risk operating at this high opening rate, or whether factories will determine to consign. In cheese there is a little demand for bhe north at s£d.

In the local dairy produce market butter 1 remains as follows: — First grade factory, Hid for bulk ; prints, ll^d for spot cash and! lljd booked; farmers' pats, 8d to Bid; separator, 9id to lid ; bulk salt butter, B£d to 9d ; bulk separator, 9id to lOd. The local cheese market continues firm. Factory mediums are quoted at 6d and Aka-roa at s£d. Eggs have been ooming forward freely this week, and the price has gradually declined to lOd. Even at this price the market is weak, and a further drop may be expected shortly. There is now no demand for preserved eggs. Pigs are in full supply, and have eased, baconers selling at 3|d; overweights and underweights at 3d. Hams are quoted at 7£d to Bd. and bacon at 7d to 7£d. Chaff is in good supply, and in faar demand at up to £3 10s per ton for extra quality. Prime oaten sheaf, £3 5s to £3 7s 6d;; medium to good, £2 10s to £3.

905 ... .904 ... .903 .. .902 .. o -z! a <£>& Quarters. 2,435,000 3,140,000 2,142,000 2,070,000 l§ fl> «§§ Quarters. 3 ,550,000 1,350,000 1,035 009 1.030!000 SI 31/8 2S/4 29/11 31/7

T.S. & Canada Russia and Danube .. Lrgentina [ndia . ., . . Lustra l asia .. sundries . . . . Quarters. Quarters. Quarters 100,000 373,000 575,000 630,000 545,000 483,000 100,000 30,000 10,000 210.000 125,000 45,000 50,000 3,500 — 25,000 25,500 22,000 Total 1,115,000 1,102,000 1.132,000