THE BREADSTUFFS AND PRODUCE MARKETS.

Otago Witness, Issue 2785, 31 July 1907, Page 22

THE BREADSTUFFS AND PRODUCE MARKETS.

Friday. Another quiet week in the world's wheat markets evidences a period of marking time while awaiting something like an accurate estimate of the near approaching harveata in Europe, America, and Great Britain. In addition, the brilliant summer weather reported in the last news_ to- hand from London ias. added .to .the " general, but temporary, inaotivity, resulting, •as we pointed out last Saturday, in a decline of a shilling & quarter in the LcftdoM market. It is, however, a striking tribute to thei strength of the wheat position that in the face of an approaching harvest pricesehould 1 show 9uch steadiness, especially' in the absence of business, which the lack of any cabled sales of cargoes would seem to indicate. The following summary of the situation ; given by " Beerbohm," under date London, June 14, will be found of intense interest at the present juncture: — Improved crop reports from South Russia, coniinued liberal shipments to Europe, and the presence of a rather large fleet of white I wheat cargoes off the coast have combined, with the aid of a slump in the American markets, to bring about » very dull state of things in the wheat market this week and a decline of about Is per quarter in values. I The American markets may be said once more to have shown their power over European markets. The Chicago operator or manipulator of wheat may, and, indeed, often does, go to the extreme in either an upward or downward direction, and Europe usually follows these movements, being perhaps the more inclined to do so this year i because of the big American-Canadian visible I <uipply, -to which we •'drew attention last ) w-eek; -we fail, however, to find *ny fresh feature in the position or the ouflook which I would account for the past 'week's "breatdowri in American prices. The American crop is clearly promising 100 "million bushels less than last year, and B' is' " highly ' probable that the late-sown Manifobaif crop will also be a partial failure. The European «rop, on the other hand, is obviously "going to be seriously less than last year, notwithstanding the improvement in the Russian spring-sown crop so that, except on the ground that this prospective scarcity has been discounted, I and that there is present fulness of supply I whatever the future may have in store, it is ! difficult to account for these exaggerated ! movements in the American markets. In our view the position of wheat, with regard to future supplies, fully warrants -the higher level of prices recently reached, and it stoouid not be probable that any serious reaction should take place; rather should we be inclined to expect renewed -periods of excitement in America wheTe the position, a» indicated by the crop indications on June 1, shows the following comparison with former | years: — The Amebican Cbop and Exports. Crop— bush. Exports— bush. I icoft-07 .. .. 735,000,000 150,000,000 : I°os-06 .. 693,000,000 100.000,000 .. .. 552,000,000 44,000,000 1908-04 .. .. 637,800,000 120,750,000 1902-03 . .. 670,000.000 203.000,000 I 1901-02 .. .. 748,000,000 234,750,000 Average .. 672,600,000 142,000,000 [ 1907-08 „ .. 605,000,000 ? There is one point which seems to us to be very clearly shown by this comparison, and that ib the very great increase in the home consumption in the U.S. It is indeed, now estimated, by some American authorities that I the iequirementu increase 12 million bushels annually; if "this be so, and it is quite probable, the requirementa for the coming year should not be less than 560 million bushels. , The pith of the above summary lies, of j course, in the disclosure of the apparent ' impossibility of America shipping any I appreciable quantity of wheat to Eutoe? during the coming season. Take this m connection with the following comparison of the officially declared crop in Russia, together with the total exports for each following season and the strength of the statistical position stands prominently out: The Russian Wheat Crop and Exports. (In quarters, 000 omitted.) 1906. 1905. 1904. 1803. Qrs. Qrs. Qrs. Q« Winter wheat 29.722 27,400 25 690 24.970 Spring wheat 33,630 51^835 57,130 51,500 Total .. .. 63,352 79,235 82,820 76,470 Exports .. 11,500 19.230 22,500 17,500 One striking result of this comparison, if these official Teturns can be relied upon (comments " Beerbohm"), is thai the hofne consumption is very much larger than had been generally expected, and that in consequer.ee an important dram upon reserve stocks must have been necessary to enaV.o Russia to have exported 11* million quarters in the present season. This week's Commonwealth quotations indicate that sellers have given way slightly in an endeavour to get the ideas of buyers. In Sydney the market has declined from 4s to 3s 10£ d, the Melbourne market is quiet at 3s lid, while in Adelaide prices have receded to 3s lOd. Under date 17th inst. the Sydney Mail reports : — Another period of inactivity has come over the wheat markets, both here and abroad. Our London cable advises that prices remain steady, but that immediate supplies for Europe aie ample for requirements, consequently the demand for cargoes has been neglected. Private messages received, at the end of the week indicated that 37s per 4801b c.f.i. could be obtained for Australian cargoes, early shipment. No business has, however, been reported. Locally milleTS have been " marking time," although not refusing to accept any minor lota offering from the country on' the basi3 of 3s lOd to 3s lid Darling Harbour. The quantity so obtained has beea limited, the majority of holders

wanting 4s, and in the cas© of one at two> city firms even higher rates. A SSyitaejrwheat merchant managed to sell sw)o btgav some days ago to a miller at 4s Id, extended deliveries being granted. The Melbourne! market has declined, but the business don« has been small, buyers now naming 3s lOJcK, In South Australia farmers are offered 3s 94 to 3s lOd, but continue to show no anxiety Us sell. ' In the local wheat market a trial ofi strength is proceeding between millers and wheat-holders, the outcome of which is being closely watched. The bulk of the wheat now offering k held by speculators 1 ,, and millers naturally object to giving at profit to men whose intrusion into their? market they resent. At the same timev some millers are right out of wheat, while others cannot continue working upon present stocks for more than, a few weeks longer. _ They are thus faced with two alternatives — either to come into the market or close down. Either course would appear to entail a less in working, for in default of gristing their ordinary output of flour the conditions under which they eabscribe to, the association demand their making provision for its delivery from another mill. And~no miller will accept an increased output except at a substantial premium. This explains the report of sales of several lines of wJieat , in North Otago - at- 4s 7cl * and 4s 7J on trucks, whilst other holders are asking 4s Bd. A' South Conterlrarji report thus views the situation: "The market is quiet, but exceedingly firm, holders becoming more and more confident of the shortage for this season, and prospects of a more serious shortage for next season owing to want of sufficient- rain. 'By a very carefully worked-out estimate of sto.sk held by millers and merchants in South Canterbury, keeping well below the capacity of the mills of South Canterbury, there is barely sufficient wheat leffc to- keep these mills running until Msrebi next.' This being anywhere near the mark, where is the wheat to come from for mills north and south whose stocks will be run out long before that date? " The scarcity of chick wheat continue** and for local orders from 4s 5d to 4s 6d,_ex: store, is being paid for medium milling quality to take the place of good whole fowl feed. For shipping orders 4a 5d f.o.b. is the current quotation. There is no change in the price of flour, and the tariff of the associated millers stands:— Sacks, £10 ss; 100's, £10 15s; 50's, £11 ; 25's, £11. ss. The shipping price m £10 f.0.b., and the Invercargill price £M> The demand for offal continues brisk, and stocks are light. Bran is quoted at £» 10s per ton for local orde», and--£* 5s f.o.b. for shipment. Pollard is quoted a* £5 10b per ton both for -local orders *n«I for shipment. ' •'•!.»' _u.i_ '.The oat market is quiet, trut'firnr, wrtn but little business passirrg. "' Holders *p» asking 3s lid to 3a 2d f.o.b.s.i. for snail lines, but the current quotation is at 3s Mf.o.b.s.i. for B grade. Locally, Bood fee* . oats are firm at 3s ex store- There is a good demand for seed oate, which command full rates. - Oatmeal is quoted *t £16 per ton and. pearl barley at £14 to £14 10s. The potato market keeps firm. Pnm« samples of Up-to-dates are saleable. at up • to £4 10s. Tasmanians are offering as Butter.— Dairy, 8d to 9d ; milled, 9d to10d; separator, Sid to 10d. First-grade* Letory-iprmte, lljd booked, ll*d i «sh;. bulk llid. North Island pate, 10|d to Cheese.— Market firm. Factory «dium^. 6±d to 6id per lb; Akaroa loaf, 6±d peff lb; medium, 6d. * ' . Ejrgs are in full supply and the price l» receded to Is sd, with expectations of * further decline. Preserved *re m demand at Is 3d. , . . _ Poultry.-Supplies J *«w, P«w» Jl™:J 1 ™: Hens, 2s 9d to 3s 3d; roosters,. 3b 64 to ss; duck, 4s to 6s; turkeya-iena bd pe* lb. gobblers 7d. <• . Piga. — Bacon and porkers are quoted *« 5d to sid; bacon, 8d; ham, Bid. Chaff.— Extra prime oaten sheaf, «p w* £5 12s 6d per ton. IMPORT MARKET. Merchants continue to complain bitterly of the interruption to business caused bjf the proposed tariff revision, and reassert their belief that the suggested postponement of the taking effect of many of th» alterations will in the end -curtail a greater* loss than if all - the remissions and proposed new duties had become immedi*telj! operative. Already" transactions in all the lines affected have been reduced to the smallest limits, retailers acting" npon tho policy of allowing stocks to run right out, and then only buying from hand to montbv - And this must now necessarily be the aspect of business for many months to come. . . The quotations now coming to nano lor all new season's fruits are based - upon * very high range of values, and it would appear that some proportion, at anyrate, of

the duties proposed to be remitted will be absorbed by this market fluctuation. Cable advice from Smyrna reports a farther rise in the price of new season's sultanas, and American advices indicate a similar tendency in almost every line of Californian fruits, particularly prunes and seeded raisins. A fairly correct indication of the condition of the Caljfornian fruit market is to be seen in the quotations just to hand for new season's canned fruit. Based upon theee quotations, the distributing price of these lines will be as follows:— Nbw Season's Canned Fbuitb. Apricots. Peaches. Pears. Water goods .. 10/ 9/6 9/6 Second standards 10/6 10/ 10/9 Standards .. .. 12/ 11/ 12/ Extra standards . . 14/6 13/6 14/6 Quotations just received for new season's salmon indicate that prices will be upon the same basis as at present, with the prospect of & smaller catch and proportionately higher- prices for the following sesson. The metal marfcet continues to show a. firming tendency. Sheet lead has advanced Is per cwt, and is now quoted at 29s 6d. Standards have advanced 10s per ton. .