THE BREADSTUFFS AND PRODUCE MARKETS.

Otago Witness, Issue 2923, 23 March 1910, Page 22

THE BREADSTUFFS AND PRODUCE MARKETS.

Friday. The week's advice from London reports no change in the dulness of the wheat position. Further sales of Australian wheat have been made on the basis of 38s 3d and 39s per quarter, and on the strength of this the Australian local markets have advanced by a halfpenny to 4s Id per bushel. Apart from this movement the general market is decidedly apathetic, and. indeed, as is outlined in Beerbohm, this is a result but to be expected in view of the increasing evidence of good general crops in most countries. Writing from London _ on February 4, Beerbohm reviews the position as follows—these remarks being particularly interesting in view of the present position of the market: —"The wheat market has bson exceedingly quiet this week; prices have gradually eased off day by day, and there has been more pressure to sell on the part of Argentine shippers than for a long time past. Australians have been also freely offered, and, in fact, most descriptions of wheat are now obtainable at about Is under the prices ruling last Friday.

Buyers have made little or no response, ami, as a consequence, very little business has been done. The present level of prices, apart from, the last two years, is above the average of recent years, and so long as the prospects of the growing crops in Europe and America continue favourable buyers will most likely pursue a hand-to-mouth policy. The latest official Argentine crop report estimates the surplus for export at 11,000,000 Quarters, or about 1,000,000 quarters less than actually shipped last year. Private estimates point to 10,000,000 quarters as a more likely surplus; even the smaller quantity would mean that there is a very large quantity of wheat to be handled, and, whatever may happen later on, it is pretty certain that farmers at the commencement of a new f-oason will be desirous of soiling a fanproportion of their crop, and consequently arrivals at the various Argentine ports are likely to be quite liberal for some weeks to come, although probably smaller than in either of the two previous years. The exports to date are already 1,410,000 quarters Less than in the corresponding period of last year, so that if the surplus is not more than 2.000 ; 000 quarters less than in 1909, most of the shortage in the total Argentine shipments this year is accounted for, and exports during the remainder of the year would be very little below last year's figurlaa This year, however, Argentina is not the same dominating power as in the two previous years, owing to the fact that there is plenty of Russian wheat still to be bought, very much more than was the case in 1909 and 1908. In a few weeks' time, if nothing untoward happen to the crop, Indian wheats will in all probability be competing mora freely with other descriptions. Shipments from all countries to European destinations in the six months ending January 31 wore very large—viz., 33,820,000 quarters, against 27,575,000 quarters in the same period of the previous season, and this must have resulted in a fair increase in stocks, in both first and .second hands, as compared with the small reserves held at the commencement of the present season. From August 1 to the end of January the net imports of wheat and.flour into the United Kingdom were 11,900,000 quarters, as against 10,030,000 quarters in 1909—an increase of 1,870,000 quarters, but the supplies of English wheat were 3,110,000 quarters, against 3,820,000—a decrease of 710,000 quarters, leaving a net increase this year of 1,160,000 quarters. The weather since harvest has, on the whole, been very unfavourable for threshing, and this may have had something to do with the supplies of English wheat being smaller than last year, notwithstanding that the crop was officially estimated as being 1.100,000 quarters larger than the previous one. A great deal of the wheat was stacked in a damp state, and required a good spell of cold and dry weather to condition it. The American markets have been much more uncertain in their movements recently, and have apparently lost much of the bullish feeling that was so noticeable up to the end of last year. Present indications are for some further weakening in prices, but any material damage to the growing crops would alter the situation considerably." As already stated the Australian market shows unanimity amongst the thee centres at 4s Id per bushel, this being a fractional improvement on the position of the preceding week. Mail advice is generally in the direction of uttering, warnings against the holding of inflated ideas of value. A very practical illustration of the plentitude of wheat in Australia this vear is contained in the very low basis at which flour is being offered in New Zealand. These quotations approach dangerously near the limit of safety to New Zealand millers, though so far, apparently, they are immune from present competition. The current Sydney Mail gives a very adequate review of both the general and particular position of the wheat market. It says: " During the week the trend of the market has been in the direction of easier values. London governs local buyers, and unless they have special reasons for desiring prompt supplies they are disinclined to operate to any extent. At the time our last report was written 4s o£-d per bushel was the average price for wheat; for very prompt delivery 4s Id might have been obtained, and the same may be said to-day. If the wheat is in Sydney, and there is a fair-sized parcel of it, possibly 4s Id may be netted; but if there is any uncertainty as to the date of arrival, it will be hard to get more than 4s. Sellers are looking for higher prices than buyers are willing to give. It is therefore hard to make any forecast of what the next few days may bring. Those who are engaged in the business do not 6eem to have much confidence in the future, and are working for safety rather than trying to push business. The world's position does not inspire much hope of higher values immediately forward. The present average price is only a trifle above the average price for last year, while it is below that of the year before; but those years were substantially above the average that ruled for Eeveral years before, and, as ' Beerbohm' remarks in the issue of the Commercial Trade List, just to hand by the mail, ' So long as the prospects of growing crops in Europe and America continue favourable, buyers will most likely pursue a.hand-to-mouth policy. Shipments to European ports for the .six months ended January 31 were about 5,500.000 quarters in excess of the shipments for the corresponding period of the previous year. In the same period the importations of wheat and floui to the United Kingdom showed an increase of 1,870.000 nuarters, and deducting 710,000 quartern decrease in the home-a'rown supplies, the increase was 1.160,000 quarters. Mr W. E. White, a Chicago authority, taking the most, conservative figures extant, calculates that there -was a month back * 597.000,000 bushels of wheat in the world. He allows 3.300.000 bushels for consumption, thus arriving at a surplus of 300,000,000 bushels available as a reserve." The local market remains on the auiet side. Quite a plentitude of samples have been coming forward, but have not. been going out of their way to seek business. bein'S content to nick and choose good lines, while shippers are still honeleaslv out of the running:. So far as prices hps been . concerned, there is a. •susra'PstiQn. of easiness, and actual business hns bpen done on th« basis of 3s 7d on trucks in the Core, Kelso, Rnd Heriot districts. Apart from these figures millers have dronned their limits, and a™ now foa.rd.lv to pro beyond 3s 9d per bushel landed in Dunedin. which mw therefore be regarA»d as the most absolute market price. This applies to southern wheat, as northern

growers are still a shade above this. This, however, does not concern Otago millers, as this year, contrary to the general conditions of former years, there is a splendid crop of excellent wheat throughout Otago and Southland. So much so, indeed, that whatever may be the course of events in the future, for the present at anyrale the Dunedin market is almost self-contained. At the same time northern wheat is proving to be of inferior quality, and it is reported that a very high percentage of that sent in to Lyttelton has been rejected. Inl the compiliation of the f.a.q. standard for the year it will be necessary to include a goodly proportion of sprouted grain to permit of exporting' business being entered l into on an equitable basis. At the close of the week it is possible to obtain Tuscan) wheat at Lyttelton for 3s Ed, f.0.b., sacks extra. •fhe price list of the New Z-ealand Flour-: millers' Associalion is as follows:—Sacks, £lO 5s per ton ; 1001 b bags. £lO 15s per ton; 501 b bags, £ll per ton; 251 b bags, £ll 5s per ton. In respect of oats, the position remains as at last week. Business in the new ; season's crop has not yet fairly started. Last week's rates still rule nominally, the operators in what small parcels are changing hands being chi.-fly local millers and merchants for coastal shipment. Samples, of new season's crop have been extremely, rare, but it is anticipated that this condition of affairs, will improve after Easter. Probably the deciding factor _in the lethargy of the market is that in l consequence of the camparative lowness of the market farmers are not troubling to thresh, or are content to allow the grain (if threshed) to lie in their barns till' times improve. Bui, little reportable change has occurred in these lines save a further drop in potatoes, the price for these now standing at £3 15s for the best. There is a good inquiry for eggs and butter, particularly the latter, while the former will, it is thought, improve after Easter. Prices are as follows: — Chaff.—Prime, well-cut, and heavy, £3 ,7s fid to £3 10s; medium to good. £2 17s 6d to £3 2s 6d. Potatoes.—Best fresh. £3 15s; inferior and medium, £3 5s to £3 10s. Onions.—Fair demand; prime Melbournes, £5 per ton. Straw, 30s per ton. Clover hay, £2 ,10s to £2 12s 6d per ton. Eggs.—Fresh, Is Id; guaranteed fresh, Is 2d per dozen. Butter. —In good demand. Dairy, to 8d: milled. 7d to 7id; separator in AH> and lib pats, 84d to 9J,d per lb. Piss. —In more plentiful supply.; Baconers, 3§d per lb; porkers, per lb. Bacon.—Rolls, 7j,d; boneless hams, Sd; sid'ps, 6fd; hams under 201 b, 7-gd per lb; pork Germans in 141 b tins (four tins to case), 4gd per lb. FRUIT REPORT. Tomatoes continue to come forward in> tixceptionalliy heavy «on& ; ,gnmen'y;, with the inevitable result of low prices. Approaching frosts will, however, soon limit' supplies and restore the market. Some consignments which came to hand this, week were already touched with the cold. A small Island shipment of bananas came to hand in fair condition, and realised l from 7s 6d to 8s per case; while oranges brought up to 8s 6d per case. Apples are in very plentiful supply with the exception of prime dessert sorts, for which good prices are ruling. Cooking apples range from fd to Id per lb. The prices ruling are as follow: Oranges.—Rarotongan, just arrived, 7s 6d to 8s 6d. Bananas. —Rarotongan (small shipment), best 7s 6d to 8s 6d; medium. 5s 6d to 7s. Lemons.—Messina halves, 12s. 6d to 13s; whole cases. 22s 6d to 255. Apples.—Market fully stocked. Cookers, 2s to 4s 6d per case:. dessert, 5s to 7s 6d. Peaches. —-Good' demand. Dessert. 3d! to 4«d; choice (in orates), 5d to 6d; Nelson (in bad order), from Is to 5s per half-case. Plums.—Market barely supplied. Common sorts. Id per lb; others, from Igd to 2d • damsons. Id. Pears. —Very plentiful. Local choice, from 4s to 6s 6d ; others. 2s to 3s. "blackberries. 5d to 5Xd wr !b. Grapes.—Local and Oamaru, from 6>d to 0?d per lb; Australian, from 3d to 5d per lb. Tom:atop.s.—Christennxch hothouse, lid to 2d: outside U fid to 2* 61 per box of 241 b; choice local hothouse, to 4gd. "Vejrefc&blw.—Cabbages, from Js to 3s per sack. Cauliflowers, Is 6d to 4s 9d per sack. Lettuce, from Is to Is 4d per case. Cucumbers, up to 4s per dozen: outsides, 2s 3d ner small box. ' Green peas, front 2s to 3s per bag of 241 b; choice, 1-gd l per lb. New Potatoes.—Peninsula grown, 2s to 2s M. per case; in cwts. 3s 6d to 4s 6d; southern and Oamaru. £3 5s to £3 17s 6d. Honey.—Choice, 4Ad to 4fd per lb; 101 b tins, 3s 6d to 4s; choice sections, 6s to 7s per dozen; medium. 3s to 4s 6d per dozen. Peanuts. —Java. 2d : .Tapanese, 2id to 3d. Preserved fringer. 7J»d per lb. Walnuts.—Good demand. Prime quality, 5§H to 6£d. Barcelona nuts, sgd to 6jd. IMPORT MARKET. Latest advice from Singapore indicates ai rise in the price of pearl tapioca to the extent of 6d per cwt. A rise of the same sum has occurred in connection with sago. An increase is also shown in the case of nutmegs, but the local market remains unchanged in the meantime. A Calcutta oablegiam shows an advance of 2d per gallon in the price of castor oil. The local \mce remains at 2s lOd for halfoases and 3s for riiums. Owing to a very good seasonal demand most of the Dunedin hardware houses are dear of rabbit trans. There is a. fair demand for all makes of cartridges, the shooting season being now. on.