THE BREADSTUFFS AND PRODUCE MARKETS.

Otago Witness, Issue 2805, 18 December 1907, Page 21

THE BREADSTUFFS AND PRODUCE MARKETS.

Friday. The period of inaction, which has characterised the wheat markets for several weeks continues, the only indications pointing to the resumption of operations being the news cabled from London under date 11th, inst., that offers of 39s 6d have been, made for Victorian new crop, January and February shipment. Under date 7th inst. the Australasian sums up the situation fairly correctly as follows: — The English and foreign markets have remained in a dull condition. The financial position in America, although it appears to be a little more settled, still contains elements of uncertainty which rendor the trade unwilling to operate freely. It is also to be> considered that when the actual pressure of the crisis is over business is likely to remain in a dull condition in America for some tune afterwards, and tins condition of things will be adverse to speculation, while it will tend to stimulate the export trade in all American produce. Thus, instead of. being a firm holder, the United States will be a steady seller, and while, on the other hand, European requirements are exceptionally heavy, the change in American financial conditionsv vill make the task of " supplying European wants an easier one. Another circumstance which is row aff-ct-ing the London market is the more assured prospect of the Argentine harvest, in consequence of which there is mote disposition on the nart of Argentine- shippers to sell new season's cargoes for Europe. Argentine wheat exports in 1906 amounted to 89,300,000 bushels, and! this year to October 31 they have reached about 98,000,000 bushels. The area under crop for the new season shows an increase of about 5 per cent. Excepting for the heavy rainfall during part of Novem-' ber circumstances- appear to have been generally favourable, and the latest news indicates that the harvest prospect is a good one. Australian wheat has Deen inactive in London. At the end of la«t week sellers were asking 42s 6d per 4801b, cost, freight, and insurance, for South Australian cargoes, December-January shipment; but later private advices only indicate 41s. Recent Sydney sdvices report that the decline in the Commonwealth markets is partly due to the improved cereal position in India, and partly to preliminary official estimate that the export surplus of the Argentine yield may touch 17,500,000 quarters, as against 13,500,000 quarters for last harvc-et. Writing under date London, November " BeeTbohm" maintains the optimistic view of the wheat market whioh until recently has been fully justified, and expresses the opinion that the present decline in prices will be fully recovered later in the 6eason. The report reads as follows: — Tho paßt week has been a somewhat exciting, although a quiet, one, jn the wheat market. All eyes have been very naturally turned to America, where the financial unrest has been, of course, the controlling factor. The end of the financial crisis is not easy to see, but it must be regarded as highly j improbable that the American Government would allow anything like a general catastrophe. Very probably the worst is now over, and the only surprising feature is that suck a stato of affairs in America, from which country, with Canada, we have since August 1, been receiving the greater proportion of our supplies, has not led to a much more serious decline in prices than has actually taken- place. The explanation evidently is that the prices of wheat this season are being ruled by the European requirements, and not, as is so frequently the case, by America's export surplus, by far the greater portion of which is probably by th£« time disposed of. In other words, the position of wheat must be fundamentally strong to have been able to withstand the effects of large shipments, "brought about by the high prices, and of an almost unparalleled financial crisis in America. W« made it clear, we think, in our )&> review, that the total import requirements ' this year are likely to be of 'record size — namely, 73,600,000 quarters, a total which ; can be reduced by drawing upon reserved j stocks; but when one essays to find out ' whence this enormous bulk of wheat is to come this season, with very little apparently ' available from Australasia, and reduced exports from Russia, one finds it very difficult j to believe that the exporting capacity of the various countries much exceeds 60,000,000 ' quarters. This .condition of the future has, of course, been largely discounted by the big advance which has taken place in values, but the real race between supply arid demand will come later; and we are of opinion that • whatever decline may be caused by the abnormal condition of the American money market will be regained later. Latest estimates of the Commonwealth crop place the anticipated surplus for export at anything from 15 to 25 million bushels. This week's quotations show a further fall in the market ; in Sydney wheat is quoted at A& 6d to 4s 7d as againet 4s 7d to 4s 8d last week; in Melbourne 4e 2JW ia this wcek'6 figure as against 4s 4£d a week since, while in Adelaide 4s is quoted as against 4s 4£d last week. The following reports from latest Aue-

tralian files give a fair idea of the Common*wealth position: With the improvement in harvest prospects (reports the Australasian), supplies have been offering more freely from the country, and the market has declined. The Victorian> crop is expected to yield, between 12i and! 14 million bushels, which will leave a surplus of several million bushels available for export after providing for local consumption. The Australian crop, as a whole, will probably reach about 40 million bushels, so far as can be judged at present, and the surplus available for export beyond the Commonwealth will therefore be nearly 15 million bushes. With this outlook, the markets in-South-Australia and Victoria have beet* settling down to export conditions. An unusual feature , of. tie Melbourne market is that o d wheat for prompt or early delivery has shown more weakness than new wheat? for forward delivery. A fair quantity ol old wheat appears to be still held in tha country, while the demand from millers it quVu, as many -bakers are well supplied with flour, and fresh business in flour is inactive. Shippers were obliged to suspend operations' for export during- the period when apprehension ruled as to the fate of the harvest, and the dullness of the markets in other parts of the world has stood in the way of their resuming operations in old wheat, their energies being now devoted to preparations for the new season. With the demand in. such an inactive state, it has been difficu'fc to make sales of any parcels of old wheat;' offering, and to' do business a further decline has had to be accepted. Moderate sales have been made at declining prices, and! the market closes at 4s Sid to 4s 4d, according to position. Purchases of new wheatf , for forward delivery have been made to a moderate extent, and the market is now steady at 4s 4d for small lots, and 4s 5Ad for good-sized parcels. Small consignments of f.a.q. new wheail, grown in the Narrabri, Gunned.ah, and Manilla districts (reports the Town and/ Country Journal) have already arrived at some of the Sydney and suburban flourmills. The grain is prime in weight, colour,, and gluten contents; and realised within » penny a bushel of the best old wheat. It is to be regretted that one or two agents misled the farmers some weeks ago by predicting that the new wheat wouid, open in Sydney this summer at 6s a bushel.'and that this price would be maintained throughout the wheat campaign. The whole complexion/ of the case has been altered by the zains. It is now practically a certainty that N.S.W. will have a fair exportable surplus. Victoria will have a small surplus. South Australia will have the fourth largest crop on 'record. West Australia will have abumper yield, with over two million bushe1 * to spare for shipment. The Darling Downswill harvest 10 to 18 bushels to the acre,, and will not need to draw "'so heavily as this year on the southern markets for wheat or flour. Tasmania will be self-supporting, with no necessity for importing wheat from the mainland, yet with none to spare for oversea shipment. It seems quite likely that the Commonwealth exportable surplus may be 25 million bushels. Evidently some of the N.S.W. growers take this view of the statistical position, as last week closed wita sales of prime old wheat at 4s 7d and 4s 7id a bushel (Sydney) in farmers' lots. Th« N.S.W. millers seem to be in no mood to buy new wheat forward. They prefer tc-> ■wait a little longer, especially as some oJ them, feel sore about having bought 800,000 i>ags of old South . Australian wheat beforej the N.S.W. rains, at a time when wheat was Is 3d a busbel dearer in Sydney than it is now. This South Australian wheat was bought out and out, and will have to b« gristed here There is absolutely no business passing in the local wheat rpar&et, the drop in tha pxioe of flour having the effect of etill farther adding 1o the existing deadness. T*he market is in an unsettled condition/ and quotations are largely nominal. Miller* 1 who have for the most part sufficient stocky of flour in hand to ccc them into the ,new year are not in the market for wheat al, any price, while holders, realising the foll^ of trying to force wheat upon a dead market, have made up their minds to wait and. see what the new year will bring forth. The only indication of values is seen in tha offer of a email line of a few hundred! sacks at 5e on trucks northern stations, buti without leading to'busincss. It is doubtfu\ however, whether any quantity of wheatf would be obtainable at that price. There is a- small demand for fowl feed for local orders, and this is being supplied at from 5a 4d to 6s 6d ex store according to quality. The directors of the New Zealand Flouc Millers' Association, as announced yesterday, have made a further reduction of 30s per ton in the price of flour, or a total drop of £3 per ton from the top of the marketf three weeks ago. For this drop rh price the weakening of the Commonwealth markets is largely responsible, the importa^ tions of Australian flour having lately been on the increase, thus affecting the sale of the locally-manufactured article. In addition, Teport6 are going about of an extensive importation of American flour, but :hese reports lack confirmation. Australian flour Jww been quoted at £9 10s f.0.b., and* this could be'larded at a little above the aresent local quotation, which now, stands w follows:—Sacks £11 ss, 100's £11 ,15s, >o's £12, 25'fi £12 ss. The shinning price

•c now £11 per ton, and the Invercar^ill price £11 10b. , The tariff for offal is unaltered as follows:—Bran, £4 15s locally and £4 10s for thipmenl: pollard, £5 10s both for local •jrders -arid shipment. There is practically no change in the oat market, and, as with wheat, in the absence of business quotations axe nominal. "Merchants for the most part indicate 3s 7d to 3s 8d as the value of lines of B grade f.0.b., s.i. ; but small/ lote are offering at Ss 5d f.0.b., s.i., on the Auckland market. JPor local orders good feed oats are obtainable at from -3s 4d to 3s sd, ex store. Oatmeal remains nominally at £18 per sj>n," but the demand is small at this price, rearl barley is also quoted at £18. There is no improvement in the potato market, and lines of -good picked Derwents are offering at Is per bag without finding buyers, while inferior lots are unsaleable at any price. The market is now fairly well supplied with new potatoes, which are quoted as follows: — Peninsulas, lid to 2d per 1b; Oamarus, 1£ to l|d; and New South Wales, Id. The local market is well supplied with butter, which is quoted as follows: — Dairy pats and dairy bulk, 6£d to 8d ; separator pats, 7d to 8d ; separator bulk,

9d to 9^d; milled— lst "rade B±d, second ?, r , ade , Q \ d > fi rst grade factory— prints, lljd booked, yid cash; bulk, lid cash. C&eese : Factory mediums, 6d to 6£d ; Akaroa loaf, s|d to 6d : mediums, 5Ad to 6d. * t Eggs are in good supply at Is to Is Id per dozen. Poultry.— Hens, 2s to 3e per pair; roosters, 4s to ss; goslings, 6s to 7s; ducklings, 5s to 6s; turkeys — hens 6d, gobblers Bd. Pigs.— Baooners and porkeis continue scarce at s|d; bacon, Bjd; hams, 9d to 9Jd. The chaff market is fairly supplied. Prime oaten sheaf is quoted at from £6 to £5 15s per ton. IMPORT MARKET. j Satuidav. Business in the import market continues , seasonably brisk, and merchants express themselves as satisfied with the volume of distributing trade. All Christmas lines are in ample supply. The quality of the goods generally is up to the average, and prices are reasonable enough to ensure an over-the-average demand. The short crop of dates has created a scarcity at tha source of supply, and the

local demand has firmed in consequence. Dates are now worth 4s to 5s 6d in cartons, according to size of package. Wire has hardened a little in the English and American markets, and the local price of barbed wire has been raised to £15 per ton. Quotations for all other import lines are unaltered.