THE BREADSTUFFS AND PRODUCE MARKETS. EFFECTS OF THE DROUGHT.

Otago Witness, Issue 2818, 18 March 1908, Page 21

THE BREADSTUFFS AND PRODUCE MARKETS.

EFFECTS OF THE DROUGHT.

Friday. There has been a certain amount of tiuo tuation' in the London wheat market, which, pending further cable advices, it is a littlo difficult to account for. London advices at the end of last week reported the wheat market firm, with a cheerful tone prevailing and cargoes more animated. Australian afloat was then said to be offering at Zti 9d and 37s for February-March shipment, while the sale of a parcel afloat was reported at 36s 9d. Since then the sale has been cabled of an Australian cargo at 37&, while last night the sale wa9 cabled of another Australian cargo at 36s l^d. In tho absence of information as to the position and condition of thees cargoes, the salos are very little guide to the state of the market ; but as inclining to show some weakening in Mark Lane is the report that a private cable was received a few days since by a South Canterbury miller reporting a drop of Is 6d per quarter, in London. In the light of tbis aparepnt. fluctuation, " Bcerbohm's " latest report to hand, dated London, January 31, will be read with a good deal of intei est : — The trade this past week has sunk into a very discouraged, dull state; almost daily deciniing pric&s of new La Plata, wheat have taken most of the pluck out of the trade, and a further decline has <to be recorded. Last week's shipments from America showed! a marked falling off, but the total for Europa was still a large one— namely, 525,000 quarters. Argentina is doing all that was expected of her in the matter of exports, andT littlo else appear* to count, although it is quit© agreed that, in the absence. of -Indian, and Russian wheat, the South. American. Republic will find it difficult, not .to say impossible, to fill European requirements during the remaining half of the season, without considerable aid from America. The question whether that aid will be forthcoming after the abnormally large shipments (from a short crop) since August 1, will, no doubt, be soon solved, and then confidence -will not b« slow to return, especially as the- level of price is now a very moderate one under the special circumstasces of this extraordinary season. The imports of wheat into European countries since August 1 have not been up ta the estimated requirements. With the exception, of the United Kingdom, and, to some extent, Germany, none of the fmporting countries have imported as much wheat so fai this season as might have been expected; the reasons for this are fairly obvious, as we have already pointed out in these columns. High prices of wheat and dear money have combined to cause- the demand to run on home-grown wheat aa far as possible, and) what seems to be the inevitable purchases of foreign wheat have been adjourned to th»

second half of the season. This may be said to especially apply, to Italy, Spain, and Austria-Hungary. The following is a return sf the xxeft imports into tue principal countries (partly estimated! for the five months from August 1 to December 81, compared with last season: —

Total Europe .. 23,830,000 24,142,000 58,800,000 The rate per annum of this season's imports for -these first five months has been, (t will be seen, about 57,250,000 quarters, as sompared with about 58;000,000 quarters per innum in the corresponding period last year. Our estimate of this season's European reauirements is -from 60 to 62 million quarters, and there appears to us to be no reason to suppose that this is tin exaggerated estimate; the Con-tiHental requirements roust indeed be very large during the remainder of the season. "Beerhohm" has sko issued a revised estimate of the wheat crop of the world, which, together with the preliminary refnarke, » well worth the attention of the Jtudent of the wheat position at the present time: — -.At the end of July last we published our preliminary estimate of the world's wheat

It is the commercial traveller who finds the many changes of climate and water hying. The experience of Mr Cbas. G. Chapman, who represent a large Brisbane concern, is not the exception. He had |>een troubled" in year witfa chronic diarrhoea, and w*s especially bad when in North Quenxland. On one of bw trips a fellow traveller recommended him to ixj Chamberlaia'e Colic, Cholera, and Diarrhoea Remedy. which he did, and what he has to tay ia most interesting: — "I procured a bottle the first oportunity, and experienced graot relief mfter taking a few doses, and was cured before the bottle was finished. I have not been troubled since, and wish to recommend this wonderful medicine to anyone suffering from the same complaint." Por sale everywhere.

crop for 1907, the total then given being 388.750,000 qrs. Now that we have fuller and more complete particulars from the various countries we are able to give a more definite estimate; the total now is found to bo 394,275,000qr5, which, as will he seen below, is about 47 million quarters below the production of 1906, and about 28 million quarters below the average of the past four years. When it is borne in mind that the world's consumption increases very materially year by year, it wi'l, no doubt, be agreed that whatever the present condition of supplies may be, this season, as a whole, must be one of " short commons " by comparison with former years.

Tola! for Europe 200,335 231,430 252.660 223.010

Total ■ out of ! Euxope '.* .. 137.94© 210,050 189,826 178,850 . Grand Total .. 394,275 441,080 422,485 401,860 j * Including Slavonia and Croatia. ! + Including Poland and Siberia. This -week's Commonwealth quotations show a slightly firming tendency. in Sydney the price is cabled as 4s 6d, and in Melbourne at 4s 4£d — in either case a j shade above Ja«t ysa^~\ level,— while the

Adelaide price at 4s 3d shows an advance of Id /per .Dushel. A private cable received in town two days ago, however, reports that the Melbourne market has receded to 4s 3d. The following mail advices from Australia make interesting reading, because, written from different standpoints, they disclose the views of those who look for higher prices, and also of those who expect wheat ■to come back. The news cabled from Sydney this evening that New South Wales wheat -growers are iolding back their grain in expectation of a better market should be read in connection with the following .reports : — N>w South "Wales wheat growers (remarks the Town and Country Journal of 4th inst.) will weigh carefully the reasons why wheat iias- shown a slight upward tendency here an-J abroad. The Sydney wheat market is still 1 7d a bushel above London parity, and the recent advance of Id to l£d a bushel in London may turn out to have but little Bignifican&p for this side. Last week sen-era! of the biggest Australian grain houses reported that they were not in receipt of any private cableß confirming the press masages respecting an improvement at Mark Lane, while several private messages pronounced the London tone to be slack. The inference was that the fractional rise in London was merely a temporary filip. partly due to the gales around the English coast having delayed the arrival of a portion of the grain fleet from Australia, theArgentine, India, the United States, and Canada In that case, the advance of 6d to Is per quarter in London is only for spot wheat, as merchants in urgent need of immediate deliveries, and disappointed by the delay with cargo s, would not hesitate to pay on extra penny or so per bushel for prompt parcels. This would not prevent " futures " in England from continuing depressed. V Thin view of the situation abroad is confirmed by recent press cables stating that some of the prominent "bears " presumably in Chicago and New York, hay« been covering up their sales of wheat, which would, no doubt, cause a spurt in the " pit " ; while the legitimate trade in London is slack. The fsab'ed sale of a cargo of South Australian wheat in London at 36s 6d per quarter represented 4a 6Jd per bushel (f.0.b., Sydney, Melbourne, or Adelaide), without allowing for profit to the exporter. This shipment left Adelaide on January 21. The price nowrealised in London, compared with the value of wheat in Adelaide towards the dose of January, shows a heavy loss to the shipper, assuming that the grain had not previously changed hands on the water. It is weJl known in the Sydney breadstuffs trade thvt on© or two of the Australian shippers complain that they cannot get an offer from London for distant cargos or " futures," and 1 [ it ia ©aid to be the opinion oi come o! the

Argentine shippers that wheat will have had a sharp fall in London by the first week in June. The upward movement in the Lond.n wheat market (remarks the Sydney Mail of the 4th inst.) was very soon reflected upon local va-lues. The 4s 3d quotation (reported in last issue as being the nominal market price) has since been lost sight of in favour of a giadual impiovement. It was reported even that the Lota had been chartered by a, Sydney firm to load some 20,(XX) bags for London. The improvement of the- European market has not, however, been such as to induce others in Sydney to think seriously of buying for export. Sufficient for the present, to their way of thinking, is the mere indication on am exportable outlook for th« future. If each improvement in London ia to mean higher rates here, the margin of difference between the buying price here and the selling price in London which, of course, exporters look fox their profit) might be some time in coming about. Sellers were on the looal market to a limited extent on Friday, when some 3000 bags were disposed oi at 4s 5d per bushel. Buyers, later on, were prepared to speculate pretty freely at this price, but there were then no sellers. Prices advanced this week to 4s 5Jd, at which rate a little amount of business was done. One firm declined »n offer of 4s 6d per bushel for Adelaide wheat delivered in Sydney. It may happen -that growers will «cc justification for holding on -to their stocks. They have certainly held control of the position in Sydney for some time past because of their waiting attitude no general disposition being shown to brin^ stocks forward. - But the future cannot be" foaecaste-d with any degree of possible certainty, and those who continue to hold shocks in the hope of further improvement r?s ' Th COUrM ' * P re P ared to accept' the li&is. lnere were many who held on in JSovember last, when the local market m up to 06 lOd, and -fchev have orobab'y re£r«_t qq n, ever einoe JLnglwh market, and local prices are several pence above the shipping parity, a 8 they have been since tlie beginning rf January? Sato c thing* that appears 8 likely to fas? uLtH SL^fr^om.^ 111 to "" ** * h ** -"h A fresh advonoß has tatem place in the sales, at Aa 6d tm trucks in theWaS district, in some instances 4s 7d TxsinJ^ES for choice lines of velvet Th*. ™™ P t a^id prices quickly receded *> and *. sd, and ju «r least one instance 4s 4id wiieat. To-day there jb & luU in operations the nominal quotation being 4s 5d to £ Sid on trucks with very little offering at this price and with buyers holding off awaiting fre 6 h developmente in X^don Sue^oT/r 16 ] s ec S Uw Qlle - With the the sh?r+ r «™ed Government statistics the short acreage this season is confirmed, 2?iU l£ Se^T S ? ostl y in Canterbury while the yields for the most part are beiow the average The fact that millers hate been compelled t o commence" gristing new wheat so early an the year, taken in conS5 n f *"« other factors mentioned, pomte to more tJan a probability of U c Dominion's wheat thie year bein^ insuffi cient for requirements, thus necessitating importations, either of wheat or Hour from Australia. Consequently New Zealand growers will be inclined to hold out for top prices for their grain, and millers, f orcod to pay prices for wheat which entails their gneting at a loss, are plaoed in far from an enviable positon. The local inillere are known to hold * comparatively light stocks at the present time, and there is apparently no hope of any advance being established m the price of flcur. Thus the future ot the wheat market is difficult to forecast but it may safely be said that prices will closely reflect every movement in Mark Lane. There is no fowl feed available, all the new season's wheat having been «aved in the pink of condition. Consequently orders for chick wheat axe being filled with mill^n?? quality at the nominal quotation of 4s 6d ex store and 4s 7d f.0.b., s.i. Further orders have been taken for flour for Auckland at prices up to £11 5s net delivered. There is no alteration in the local price, and the FlourmiDers' Association's tariff is unaltered as follows: — Sacks £11 ss; 1006, £11 10s; 50's, £12; 25's, £12 ss. The shipping price is £11 per ton, and the Inveroargill price £11 10s. There is no alteration in offal, and the association's tariff stands : — Bran, locally £5 ss, and for shipment £5 f.0.b. ; pollard, £6 per ton, both for local orders and for shipi n>ent. The demand is very brisk, especially for pollard. Deliveries of oats are still on the small side, and everything offering is being eagerly taken up to supply shipping and local orders. Merchants are busily engaged in filling contracts already entered into, and are not anxious to do fresh business except at nn advance on late rates. The continuance of the demand from the : North Island is an indication of the extreme bareness of that market, and of the absolute depleni&hmenfc of all etocks prior to the coming of the new organ. It is anticipated that there will be a difficulty in filling all contracts made for March delivery, and that fact alone should keep the market firm until the end of the month. What will happen in April is a matter of opinion, und of extremely varying opinion at that. One feature of this j season's trade is the splendid quality of the oats so far delivered, the bulk of which grade "A" easily. Indeed the absence of inferior samples is a feature of the business being done, v.hich, in itself, makes for a firm market. It is difficult to fill I orders now at under 2s Id on trucks south, and a sale is reported of "A " grade at 2s 2d net on trucks, Balfour. Shippers are } disinclined to fill orders at 2s sd, f.0.b.5.i., for feed oat®, and are indioating 2s s£d and even 2s 6d as the probable price, while proportionately higher rates are asked fot seed lines and for duns. The local market is bare of stocks, snd 2s 3d to 2s 3^d ex store is the nominal quotation. I The price of oatmeal is unaltered at £12 per ton. , There is still a good demand from the North Island for pota-ioe*, and a brisk shipping trade has been done -during the week. At the same time deliveries have been heavier, «nd the looal market is a. 1 ahjuifi easier. The curreat quotation £o£ ■

1 Oamarus is from £5 5s to £5 10s pef ton. There is no ohange in the butter anarket> and quotations range «6 follows I—Firstl—First grade factory—bulk Is Id, prints Is 1%9 booked and Is l^d cash; dairy pats, 9d to 9id; separator bulk, lOd; separator pate, lOd to lid; milled, '9d to &4d. Cheese is firm, and inclined to harden 1 * Factory mediums are worth 63d, and , Akaroa loaf 6d. . The egg market is easier, and fresh eggs] are slow of ,3a le at Is 2d per dozen. Quotations for poultry are *s follow:—* Hens, 2s 6d to &s per -pair; rooafcers, 4^ to ss; goslings, 5s to 6s; ducklings, 5s 6dl to 6s; duoks, 4s 10 4s 3d ; turkeys—hens 50% gobblers 8d to 9d. Bacon pigs are quoted at s£d; porker*, 5Jd; bacon, 9d per ib. The shipping demand having fallen offy the chaff market has an easier tendenoy, j Best new chaff is quoted at £4 per torJJ ex truck, and old up to £4 5s per ton. Saturday. From the Sydney Mail of March 4 w^ take the following: — The New South Wales Flourmill Owners^ Association of -Sydney is affiliated with, thet district associations in the southern, the) western, the north, and the notfch-westero. As the outcome of various conferences heU during the last three months between delegatea from the metropolitan and country} fiourmills, certain :rules and .regulations havfl been agreed to by these associations which, it is confidently anticipated., will, on the one hand, put an end to the pernicious trada practices, such as unrestricted forwardl selling, and, on "the other, lift the commercial conditions of the industry on to at higher level of efficiency. These rules ajnfl regulations, Which are now ia operation throughout the State, provide ihtft the members of each association shall subscribe to ttl substantial bond, based upon ~fehe -capacity! of the respective mills. Tie Txrandaiiea oil each district have been defined. Each district association will regulate and fix thtt price of flour and offal in its own district, and the prices so fixed will be respected ana adhered to "by the members of any -of "th« di-striot associations .doing business in either 1 of the said districts. All contracts or for* < ward sales of flour will be limited to thxetf 1 months, and deliveries are to be in tftipu* la ted quantities monthly. According to the New South Wales &t*titf* tical just published, there were 78 flourmills in operation .in 1906, employing 873 hands. The wheat operated upon amounted to 11,151,126 bushels. The flou* made aggregated 225.995 tons. The plani and machinery represented 5532 horse-power, valued at £297,659. To some extent the future of fhe oat market would appear to depend upon the prospect of a demand from Australia. The latest issue of ° the Australasian reports the Melbourne market quiet, owing partly to the importations from South Africa nowt in progress. The total quantity ordered] from South Africa, including .that whiohi has alreadr arrived, is estimated -a* 130,000 to 140,000 bags. Private advices from Melbourne, under? date sth inst., «ive, however, the other* side of the story. These state that thai 'Victorian -oat crop this year is a lights one, and growers are storing pretty freelj?] in anticipation of -an advance in price. Unexpectedly, shipments arrived' from South! Africa, and for a time caused considerable v depression in the Melbourne market. Oni arrival, however, the South African oats were found to be of very ordinary quality, as a rule, and packed in any sort of begs, including bags which -had contained' phosphates and manure. The waste consequent on re-bagging and the cost of new bags is considerable, and the buyers aa?© not likely to repeat their orders. IMPORT MARKET. The following new price list has been arranged for Duryea's Maizena:—Ten boat lots s§d, less than 10 boxes s£d, ordinary terms and discount. This is a slight ad-> vance on prices previously ruling. A brisk business continues in all lines affected by the new preferential tariff, which comes into effect at the end of tha month. In addition to the articles mentioned a fortnight since, the following ines are also affected: Capsules, trico* pherous, peerless gloss, and corks. The market is very bare of twines of alt kinds, and prices are firm at the recenti advance. There is a considerable amount of specu-c lation amongst merchants as to how fart business in certain lines will be effected bj] the operation of the Pure Foods Bill. Inl the absence of definite schedules, this is) difficult to determine. There has been a good demand for fishS of all kinds for the Lenten season. "v--The market is bare of Brown's Cbrm Flour pending the arrival of further supplies. The Invermay. now in Wellington, brings supplies of Liverpool salt, both coar.se and fine, as well as xock salt. As thia shows an increased cost of 5s per ton, there is a possibility of the distributing tariff being advanced slightly Sunlight soap, Lifebuoy soap, and other of Lever's soaps are in short supply. Owing to the strike in Sydney and the uncertainty which prevails in shipping circles, bherql is, unfortunately, no immediate prospect of further supplies being available. There is so brisk a demand for sugar that: it is not easy to fill all orders from Auckland. The Colonial Sugar Company is Bill] shipping from Australia bo supply the demand. Linseed oil has advanced in price. Ravr oil is emoted at 3e 3d and boiled at 3s 4dl The Invermay brings -further supplies of dates in lib packets, which are quoted atf 4s. There is every indication of higher prices for salmon. Recent American advices report that England is purchasing freely, anci stocks of sockeye are nearly exhausted. Best flats and tails are commanding nigU prices. The prospects point to another) short run of fish this year, and canners are preparing to curtail their operations accordingly. Very few of the canning rac* tories on the 'Frisco River will be at worlc during 1908. Out of 35 factories on thai "Fraser," only eight ar-e beintr worked, il is not anticipated that the 1908 pack will equal that of 19TJ7, which in its turn wag below the average. 1

LOSSES BY DAIRYMEN, (Fbom Our Own Corbespohdent.) WELLINGTON, March 16. A Rongomai pettier informed an Eket£* huna. Express .reporter that, owing to thtf shortage oi grass and water, he had been compelled to. drx his cows off three month*

tf&oner than he anticipated, and as a result w'thiß his loss would amount to about »100. Another dairyman at Ihuraua, who ?as milking: 80 cows, stated that his loss ould be between. £200 and £300. Thess Are only instances of general losses throughOut the district.

Tutub . . . . Argentina ttepuk, AuHru-tofsi* Aftift Mtbcf .. Canada . . „ Cane Colony .. Chili ..... Egypt .. .. India „ .. .. Persia .. .. Syria .. .. .. U.S. America . Uruguay .. .. Mexico ... Japan «• .. ;:,890 4,250 2,700 3.550 VJ.'.O I.2SU 760 1,200 2i,000 JW.tOO 17,ftW) 19,600 (J,OW) 10,000 0,500 7,900 n,guo 6,o:kj 6,000 4,r.00 if».ftoft IS,4W 23 ( 6{«J fl.fiiM) f,OO g<« iOO 650 1.300 3,700 1,660 2,000 1000 3, §00 J. 600 1,600 Bs>,OOo 40,000 11,000 44,700 4,000 3^oo 3,100 3,000 3,001) 3,000 9,800 2.500 78,000 91,000 gg,Ooo 60,000 1,500 800 S?S 750 1,000 3,000 7flo 1,100 10,080 12,009 10,000 11,600

IHU7. ltfOb. 1905. Qrs. Austria .. .. 6,250 •Hungary .. .. 16,250 Belgium .. „ 1,860 Bulgaria .. .. .2,500 Denmark .. .. 500 France „ 46,000 Germany , r . .. 15,935 Greece .. .. 750 Holland .« .. 650 Italy 20,000 Portugal .r .. 400 Rouruania . . 5,850 iKussia „ .. 63,675 Servia .. .. 1,500 Spain .. .. 12.000 Sweden .. .. 725 Switzerland .. 600 Turkey (Europe) 3,500 Uuiiea Kingdom 7,000 Qrg. 7,200 25,900 1,750 5.150 500 41,000 18,000 750 600 20.000 50C 13,600 63,800 1,850 17.600 750 500 5.000 7,580 Qr B . 6,750 21^500 1,500 3,750 500 42,000 17,000 750 590 20,000 500 12.750 79,000 1,400 11,000 620 500 5,000 7,550 Qrs/ 6,700 18,300 1,750 5,250 51C 37,40 C 17,50(1 75C 75C 21,(KXJ 350 C,75C 82,000 1,500 12.00 C 70C 45C 4.50 C 4,75 C

The Wheat Crop of the World. (In Quarters oi 4601b, 000 omitted.)

■ Total for 1997-08. Quarters. wted Kingdom .. 10,930,000 ?r*nce „ 775,000 xermany . . 4,500,000 3«lgium .. 2,350,000 loUand .. 725,000 taly .» .. 1,150,000 Spain .. . 250,000 Sweden .. ..- 450,000 Sundry oountiies .; .. 2,700,000 season 1906-07. 1906-U7. Quarters. Quarters. 10,527,000 26,060,000 900,000 1,675,000 3,125,000 9,225.000 2,570.000 6,175;000 1,135,000 2,240,000 2,400.000 5,800,000 635,000 1,000,000 600,000 875,000 2,350.000 5,750,000

Net Imports from Atjgttst 1 to Decembeb 31.