THE BREADSTUFFS AND PRODUCE MARKETS.

Otago Witness, Issue 2690, 4 October 1905, Page 9

THE BREADSTUFFS AND PRODUCE MARKETS.

Friday. There appears to be a likelihood of a certain amount of competition between the rival shipping companies for this season's dairy produce for the English market. It will be remembered that the contract arranged some months back between the New Zealand and Shaw-Savill Shipping Conipanies and the National Dairy Associations of both islands provided for the carriage of butter at |d per lb and of cheese at per lb. A fortnight ago we announced the likelihood of the shipping companies making a further concession of £d per lb iv the butter freights, thus bringing the rate for both butter and cheese down to ,id per lb. The Federal-Shire-Houlder line has now entered the field with, its direct monthly service to "West of England ports. Ifc. has just intimated -its intention to carry butter to Barry (Bristol Channel); Liverpool, Manchester, and Glasgow at id per lb, or per lb lower than the rate quoted by the New Zealand and Shaw-Savill Companies for London; It is also understood that t)he Federal-Shire-Houlder line will take cheese for "West of England ports at id per lb. It is reported that the representatives of the New Zealand, and Shaw-Savill Companies are in conference in Wellington discussing the situation, and it is possible that the competition "may lead to yet lower rates being quoted. One of the conditions upon which the London companies contracted with the Dairy Association was that ' they should get the entire season's output, and it will be interesting to see how^tfoey will meet the latest competition. "" ' The Fede-fal-Shire-Houlder steamers will ensure regular sailings by first partially loading its beats in Australia, reserving as much space as is required by New Zealand shippers, and making the last port of call iir this colony. The passage from New Zealand to the West of England will thus be -don© in about 45 days. " With reeord^prices, in some cases reaching as big-has 10^d for butter and sfd for cheese, tog-ether -with the promise of exceptionally low freights, dairy producers may look forward to a highly profitable season. The most noteworthy event of the week is the decline of the Commonwealth markets. This wreck's Melbourne quotations are- cabled as quiet at 3s $d, a drop of lid, Sydney and Adelaide prices being also a shade easier at up to 3s 7d. Improved crop prospects, owing to the rain falling in various -of the- 1 wheat-growing districts of the several States, is probably the cause of the easing. The Sydney Mail reports 17The indifference manifested by wheat buyers still continues, and notwithstanding / the fact that prices have reached 3s 9Sd to 3s lOd ship's side for prime wheat in Melbourne, there has been practically no response in this State, and, so fax as can be ascertained, 3s 6£d is the highest figure yet paid by millers for prime_ grain. Melbourne holders are/ of course, at an advantage from the fact that exports of wheat are still being made irom. the port, whereas for some time 'past New- South Wales has exported no wheat ■'and only comparatively small quantities of 1 flour.- Prices may be given as 3s 5Jd to 3s 6Jd per .bushel, according to grade, with holders showing, no anxiety to do business at less than 3s 7d, andjnilleis unwilling to pay more than 3s~ 6id~. Most of the latter state that they ha.y^, supplies for some time to come, and those who have not are apparently holding off as long as possible, doubtless fearing that if they came on the market to tray they would send up prices. From December 1 of last year to date the exports of wheat and flour from the Commonwealth total ths equivalent of 29,806.368 bushels of wheat from an estimated surplus of 30,200,000 bushels, thus leaving 391,632 bushels for shipment. Victoria bas exceeded her available expoits by 1,175,438 bushels, and is either trenching on her food supply or her carry over for shipN ments. New South Wales has, exclusive of food supplies and carry over, only 107,120 bushels left for shipment. The position for wheat should, therefore, be a strong one, although, of course, the rain now falling may lead* millers to bold ofLjs buying still longer in prospects of the good harvest. The local market has been inactive during' the week, the drop in Australia having caused buyers to suspend operations.. At the same time there is a growing feeling that really prime wheat is in small compass, for of the few samples now offering the bulk can only be classed as medium quality. No re-ally jirat-class milling wheat can now be obtained at under 3s Id on " trucks ; a. little medium quality is offering at from 2s lid to _3s. There" is., very 'little inquiry for chick wheat, whole fowl fee<3 "being- nomijially worth 2s lid ex store. Shippers are ;filljmr orders at northern ports at 2s lid ffcSb.., sacks in. \ The demand for flour keeps brisk, and the', month's sales have been large. The New Zealand Flourmillers'' Association's tariff stands as 'follows: — Sacks, £9 10s .per ton; 100's, £10; 50's, £10 ss ; 25's, £10 10s. The shipping price is £9 per ton f.o.b. There is nf> alteration in the offal market. Bran is quoted at £3 15s per ton for local orders, and £3 10s*per ton for shipment; pollard.,,, at '-£4- per .ton. both for local orders «nd .shipment. There is a good inquiry for bran -for Australia, which is explained by the following from the Melbourne Leader: — In referring to the strength of the wheat position on August 21, reference was also made to the fact that the reduced output of .flour following on dearer wheat would^materially affect the supply of mill offals. Up to date this season Victoria has been turning out about 7000 ton's of flour per month for the export-trade alone, and in the making of this quantity about 275,000 to 300,000 bushels of mill offals were turned out. Now, however, with wheat supplies reduced and prices high it is impossible to carry on a flour export trade of any extent, and the oxitput is reduced to merely meeting local reqiiir-ernents. As a consequence we find both bian and pollard in light supply and firm, and prices comparatively high. In the stme connection the Sydney Town and Country Journal remarks: — The more general the rain north and south the more pronounced will be the fall in the values of lucerne, chaff, bran, and pollard, with the reservation that, as the dearness of wheat has stopped the oversea export of Victorian flour, a. stronger inter-State demand has sprung up for New South Wales mill offal, since- the Victorian make is now inadequate to even meet the local consumption. Queensland and West Australia are short of mill offal. Our Temuka correspondent writes: — " During the last week the wheat market lias shoron marked signs of improvement London and Australian cables have been received showing decided turning ia these

markets. There has only been small quantities on offer dun'ng f.he week, and these at an advance of fully Id per bushel. Prime milling- Tuscan and velvet are difficult to pick up, and apparently are not plentiful. Sales have been mado at 3s, but holders are asking 3s Id. Whole fowl wheat is in strong demand, and not much is offering. Oats are more difficult still to obtain, practically nothing offering from fanners, almost all being in the hands of speculators and merchants, who are not inclined to sell. Farmers, who generally at this time of the year are able to sell surplus stocks, this year are buyers themselves, and between this and the end of the year wiU require quite a large quantity for feed purposes, while tho amount required for seed must be considerable. As the continued wet weather has prevented the sowing of springwheat, a great deal of the land prepared for wheat will have to go into oats. If given fine weather it will be some time before the heavy lands can be worked. A number of farmers here have abandoned the idea of getting the balance of their wheat sown. This muat make a stronger demand for seed oats; 2s 6d per bushel is being- asked for beat seed lines, while a line of 1200 sacks was sold this week at 2s (sacks 6d) on trucks, a portion of which. v,ere B grade Ga.rtons. Potatoes arc much weaker, practically none offering, but the few coining forward are not meeting with a strong demand- at about £8 per ton. Mixed lines of wheat may be quoted at 3s to 3s Id f.0.b. ; Danish oats, Is lOd ; Gartons, 13 "lOd to 2s; Duns, Is lid to 2s,* I country stations, practically none offering." Tlhe oatmeal market remains in an un- [ settled state, and quotations are being made at from £9 10s to £10 per ton, according to the fancy of buyer and sell&r. Pearl barley is quoted at £13 to £13 10s. The potato market shows a further decline in consequence of arrivals of consign- ! ments of Calif ornian \ Burbanks from j Auckland o.nd of circular heads and ! Derwents from Tasmania, in addition to which the consumption continues to show a falling-off. New j Zealand Derwents are quoted at £9 15s to I £10 for best table varieties, second-grade j being quoted down to £9 per ton. The Taimanian potatoes are at present held for £10 5s per ton, whilst the Californians are selling at from £10 per* ton for-aline up to 12s 6d per cwt and l^d per lib for smaller quantities.' These Californians vary, some of them, which have beeu shipped green being decidedly soft, whilst others are of excellent quality. It is impossible to forecast the future of this market. Sydney advices state that the New South Wales market is stronger, and that the crop oj new potatoes there will be late. It is therefore possible that the next arrivals of Califo.rnia.n potatoes may be diverted to Sydney, in which case the New Zealand market may 'improve. In any ease, the trend of prices is problematical, though some holders look for an improvement between, now and the end of the ye-pr. In any case, with an,- uncertain market, importation on a large scale will be a risky business. There is a, continued scarcity of butter in the \loeal market; first-grade local factory is unobtainable. North Island factory bulk finds ready sale at ll^d. Farmers' pats are in short supply, and command ~9£d to 10£ d. Separator salt has been sold at up to lid. f ~ The local cheese market continues firm. Factory mediums are quoted at 6d and Akaroa at s^d.* Eggs are firm at 9^d per dozen. Current quotations for poultry are as follow: — Hens. 2s 3d to 3s; roosters, 3s 3d to 3s 9d : ducks, 3s to 4s ; geese, 4s to ss ; turkeys^-heiis sd. .gobblers 7d per lb. Pigs are plentiful, baconers, sellinsr at 3|d overweights, and at 3d underweights. | Hams are quoted at 7£d and bacon at 7cf. Chaff has again hardened, and prices are j as follow : —Prime oat-en sheaf, at urj to £3 12s 6d; medium to good, £2 15s to £3. Saturday. There is nothing new to report concerning the London wheat market, and the fact that both here and in the 'Commonwealth prices are above London parity robs the course of the European market of much of its interest for the" moment. The following comparison made by " Beerbobm of j the wlheat requirements' of the importing countries for the coming season, and the shipments from each producing country during the past three seasons cannot fail to int&rest all -wheat-growers and buyers, especially since it shows so vividly the J changes in the source of supply during the j pei'iod under review. "Beerbohm" remarks : — " > 1 Wheat. — The interregnum between the old j atid^ new crops is being attended, as- usual when the world's crops. show no serious failure in stay direction, by declining- values. There had been a good many reports about crop failures in Russia and France, but these reports, if they prove to be true, can only be expected to influence the market in the , more distant future; meanwhile, the world's markets seem satisfied with the prospective supplies of new wheat, and it looks as if it would be difficult' to move prices from their present level unless the American spring wheat crop prove to he- again deficient. The present indications seem to us to point to the world's crop being equal to the high average of the past three years — viz., 400 million quarters. It has been our custom at this period for many years past to attempt to forecast the probable isequirements of the various importing countries during the forthcoming season. This task is rendered more {ban usually difficult this season because of the uncertainty with regard to France. Proceeding, however, on the lines that the United Kingdom may be satisfied with 2,000,000 quarters less than in the past season, and that the French crop may not reach 40.000,000 quarters, and that consequently 4.000,000 quarters may be required for that country, we suggest the following^as the probable requirements of each country in the season^Just commencing, compared with the actual net imports for each of the two previous seasons (in quarters, 000 omitted) . — The Wheat Requirements op Importing Countries.

From this statement it will be seen that we think it probable that importing countries wiil require practically as much as last season. It is cl course difficult to suggest where this iinraeuse volume of wheat is to ccme from, because we do not yet know with, any osrtainty what the American surplus mry be, nor can we yet judge of the Argentina £.nd the Australian crops, which have a considerable influence iipon the shipments during the second half of the season. It is, howver, regarded as highly probable that both Russia and India will ship considerably less than last year. Roumania, however, may probably have a record surplus, and thus kelp to make up for Russia's ffclling ofi. For purposes of comparison wo give the following record of the shipments from each country during the past three seasons, ended July 01 .

From this statement our readers may be able, as the season proceeds, and as information regarding the results of the crops become more definite, to form their own conclusions as to the capacity to export ooi the part of each country during the forthcoming season.

Ke the disappearance of sheep from the Gore district, the Ensign says: — "Amongst 1 th-e sheep which, lately went missing from .the paddocks of local farmers and breeders was a line o£ some 130 from a farm on the Otakarama hills. We understand that during the last few days theee sheep have been returned to their owner's flock. In the .meantime the owner had transferred the remainder of his fleck to a holding at Charlton, and was agreeably surprised to find the missing sheen were shortly afterwards turned into the paddock at, Oharlton. They had, we understand, been well taken care of. and were in exeellect condition.

Russia and. Danube U.S. America Canada. Argentina . . India . . . . Australasia „ Sundries 1904-1905 1903-1904. 1902-1903. Quarters. Quarters. Quaxieis. 29,000,000 24,500,000 23,250,000 5,500,000 14,325,000 24 J 45O > or-O 2,500,000 3,250,000 5,500,000 12,750,000 9,500,000 7,100,000 9,250,000 7,200.000 3,400,000 4,550,000 3,500,000 — 1,330,000 1,830,000 1,650,000 Total 61,800,000 64.125.000 65,350,01)0

1905/06. Probable. Qrs. United Kingdom 25,500 France ..- .. 4,000 Germany .. .. 8,000 Belgium „,, .. 6,000 Holland .. .. 2,250 Italy .7 ~ .. 4,250 Sweden .. .. 1,100 Spain 2,000 Minor countries 5,000 1904/05. Actual. Qrs. 27,535 1,200 7,770 5,700 2,000 4,650 1,050 2,725 6,250 1903/04. Actual. Qrs. 27,480 1,450 8.780 6,285 2.385 3,600 1,105 725 4,750 Total for Europe 58,100 58,880 56,560 Extra European Countries . . 7,000 6.500 7,500 Grand total .. 65.100 65,380 64,060