THE BREADSTUFFS AND PRODUCE MARKETS.

Otago Witness, Issue 2934, 8 June 1910, Page 21

THE BREADSTUFFS AND PRODUCE MARKETS.

The cablegrams from London in the early part of the week brought doleful news for those desirous of seeing a return to high prices. Australian cargoes first sold at 32s 6d, and then fell to 325, while the latest sales were as low as 30s 6d, 30s 7jd, and 30s 3d. This‘drop has been a very decided one in view of the contrast afforded with, prices of nearly 40s ruling some two or three months ago, and fuly justifies the stand taken and the comments made by the Town and Country Journal and reproduced by us below. This view is strictly in accordance with the natural economic law of supply adjusting’ itself to demand. The prices realised during the past couple of seasons would naturally offer a great inducement to increase the areas sown, and the present position of the market is simply attributable to the' completion of that factor. At the same time, while the general trend of the market is undeniably behind the present drooping of the position, the very sudden drop taken may have been influenced by antifieial manipulation of the market. If that be so, then a sudden recovery may -not come altogether as a surprise, as such rebounds are not unknown. At present, however, it must be said, there is not much in the general position to favour the idea of any substantial rise, although now that the producing level has practically been reached a settlement may reasonaby be looked for. The latest issue of “ Beerbohm ” says: “ The continued absence of demand, the further decline in America owing to more favourable crop prospects in that country, and the improvement in European crop prospects, have combined to cause a more pronounced weakness in the wheat market than has been experienced for so ae time past, and prices have further declined 9d to Is 3d for most descriptions, without, so far, leading to any particular increase in the amount of business passing. Buyers appear disposed to continue the policy of have pursued for some considerable time past; they come into the market from time to time and purchase sufficient wheat for their requirements in the near future, but show no disposition to enter into contracts for any long time ahead. Up to the present they have been justified in this course of action. The statistical position, compared with a month ago, is rather in favour of buyers; this statement also show’s how different the position is as compared with the last two years. Whereas this year .'there has been a small increare of 300.000 quarters on the month, last year there was a decrease of nearly 2,000,000 Quarters, and the year before a decrease of 850.000 quarters. The much more favourable crop prospect in Russia has induced holders to be more willing sellers, and if the reserves from the last cron are large, as they should be if the official estimate of the last crop is correct, supplies from the interior ought to increase, especially as farmers in many parts of the country have finished their soring sowings. Recently the fresh arrivals at the ports have been only on a moderate scale, and as a consequence port stocks have been steadily decreasing, the exports being much larger than the receipts. Shipments from India this week are liberal, but consist principally of old cx-op Kurrachee; they are expected to shortly show a fair increase from Calcutta, hut the movement from that port so far has been somewhat disappointing. The American markets close much steadier, after being lower in the ea.rlv part of the week. Spot prices at the principal centres have, however, declined sharply, being 4 cents to 44 cents lower, princinallv owing to the verv poor demand from local millers. Trade having been quiet for several weeks, .and prices having declined to a fair extent, it would not be very surprising if there ■were a slight reaction, but unless there should be some decided impairment in cron prospects, any improvement _ would probably be only temporary. It is true that reserves in importing countries are nuite' moderate, - but stocks, owing-to fairly large imports, have increased somewhat during the past few weeks, ard th.» quantity on nassr/re' is now w' 1 800 000 quarters larger than at this time last year,

all the increase being in the figures for the United Kingdom and orders. Whatever may happen in June and July, present indications are that shipments for the. next month or five weeks will be sufficient for the requirements, and the course of prices in the future would appear to still mainly depend on the progress of the growing crops." , The Australasian of May 28 writes: " T.he Melbourne market has continued to show weakness, reflecting the recent tendency of London. While supplies are not being offered with much real freedom, there is enough offering to supply millers' current requirements, while the surplus still remainng in Victoria available for export is still a substantial one. As the' crop prospect is a favourable one, there is no basis for the market to assume an independent footing, and when prioes are above shi'ipping parity the disposition of buyers is to operate only from hand to mouth. Sales have been made at declining prices, the market closing at about 3s 7£d to 3s' Bd. Small farmers' lots in the country . are quoted at lower rates. For flour the local demand is slow, the asssociation basis for ordinary trade parcels being reduced to £8 10s delivered. Business for export is difficult to do, any offers being- generally at low prioes." The Sydney Mail of May 25 writes in the following hopeful strain. It should be noticed, however, that this was penned when the Rome market was at 34s 6d per quarter, whereas now it has dropped 4s below that: : —"During the week rain fell in many of the wheat-growing districts, and brought on a resurription of ploughing operations, which had been suspended for some time. Farmers are now hopeful of having a fair average area under cultivation for the ensuing season. While the drought continued, the market was practically at a standstill. Large holders in Sydney would: not sell at the full rates that had been ruling; the consequence was that shipping business continued quite infinitesimal. The cramped conditions have now, however, worn off. Buyers and sellers are looking to the future, not with dismay and uncertainty, but with a hopefulness that is quite cheerful. The market had not, up to to-day, responded to the reduced buying prioes which shippers and millers adopted vipoi? the advent of the weather conditions, but there Was ft feeling of satisfaction, which was expected to lead to business of an extensive kind in the near future. Shippers were offering 3s 7d to 3s 7£d per bushel for parcels, and the ruling rate for gristing pui'poses was about 3s B£d to 3s 9d. London offers were on the basis of 34s 6d per quarter of 4801 b, but no finality was reached in respect to business. Merchants were inclined to the opinion the bedrock had now been reached."

The Town and Country Journal of May 25 writes as follows: —" It is much to be regretted that nearly all the wheatgrowers in New South Wales have paid no heed to the repeated warnings fpublished concerning the fact that the world's wheat shortage ' has been more than made good, and that the normal surplus has commenced to be accumulated in the world's granaries. Private cables to Sydney quote the London and Liverpool markets as flat, with a drooping tendency, the weakness being partly attributed to the abnormally heavy supplies offering to London from Russia, and partly to the expectation that India will be a huge exporter. Further, the wheat crop prospects in most of Eurcipe, all Canada, and nearly all the United States are good. Hence the deficiency in the Argentine yield is much more than compensated by abundant crops elsewhere. The rains over the Riverina and interstate wheat areas have brought out' a number of sellers of wheat in the country districts of New South Wales. The farmers as a body are, however, not yet reconciled to the. notion of accepting 3s 3d per bushel (on farm), seeing that early in .the season they refused buying offers' of 4s to 4s Id (on farm). Milling wheat once touched 4s 5d (Sydney) this season, current rates showing a fall of about lOd per bushel since. It is curious how insistent the New South Wales growers .as a rule are in trying to get a penny or twopence per bushel above the market rate. This insistence drives a big- percentage of the wheat shirpincr business, and of the flour export from Sydney to Melbourne and Adelaide, for the Victorian and South Australian farmers are more amenable to reason in meeting the shippers and millers. Unfortunately, several of the New South Wales country newspapers make a constant practice of telling the farmers that wheat is too low, and that they should hold. This holding policy has this season prevented hundreds of New South Wales farmers from accepting 4s to 4s Id (on farm)."

The cablegram from Australia reveals a still further decline in the price of. wheat, and the position is eloquently shown by the fact that 3s is offered for wheat in Sydney with no operations proceeding. In Melbourne wheat is quoted at 3s 2d, and in Adelaide at from 3s Id to 3s 2d. Further reductions of 10s per ton have been modern the price of flour, Melbourne being quoted in the association scale at £8 per I ton, and Adelaide at £7 10s to £7 15s. It is this drop in the price of flour that is going to affect the New Zealand market. Already it is known that over 1000 tons have gone to Auckland, and locally offers have been received which will enable flour to be landed in Dunedin from Melbourne at £9 5s per ton. It is thereforel seen that serious competition awaits the local oroduct, which is now quoted at £9 15s. Millers were fair buyers earlier in the season at good prices—3s 9d to 4s per bushel. At present farmers show little inclination to recede from the margins taken U P b y them ea.rlier in the season owing to the belief that there is in New Zealand not more than enough milling wheat for local requirements. This view was a sound one so long as outside competition could be prevented, but it remains to be seen what influence the inception of the Australian assault will have upon the local position. Meantime, this remains dormant, with farmers altogether out of the market. Many of those still holding a.re in a position strong enough to hold for some time, and it is not improbable that rather than accept the low prices inevitable at present, after having allowed bigger figures to go by, they will continue to hold. If this course should obtain to any considerable degree it will still further strengthen the attack of the imported flour and operate disadvantageously to local millers, who, thus cut off from a measure of good wheat, may be forced to use inferior grain, with resultant bad effocts on the flour. One factor to the miller's advantage in the incipient oontest its custom. It may be that bakers and con-

sumers, recognising the advantages and courtesy of the association in the course of previous business, may be reluctant to go to the extra trouble of securing the imported article, and still continue association supporters. As anticipated and predicted, the New Zealand Flourmillers' Association was obliged to reduce its price list for flour by 10s pei- ton all round. This now stands: — Flour: Sacks, £9 15s per ton; 1001 b. bags, £lO 5s per ton; 501 b bags, £lO 10s per ton; 251 b bags, £lO 15s per ton. Oatmeal, £ll 10s per ton. Pearl barley, £l4 per ton. For bran and pollard there is a keen demand for shipping purposes —in fact, the supply cannot meet requirements. The pressure is caused by the necessity of artificially feeding stock consequent upon the shortness of winter feed owing to the summer dryness.' Bran is bringing up to £3 ss; white pollard has been commanding up to £4 and £4 10s per ton. The official price has now been advanced by £1 per ton. • The oats position remains very quiet on the week. Many farmers have been in town, but this has in no way affected the ■i'arket.. Prices are on the easier side, but a significant feature of the position is that the farmers evince no tendency to ease their holdings, but remain a,s firm in then* determination to await their market as ever. At the same time, prices are fully Id lower than they were a fortnight since. and may be set at 2s to 2s Id f.0.b., s.i., at Bluff, for A grade Gartons; Is to 2s for B grade; and 2s for B grade sparrowbills, arid 2s Ogd for A grade of the same grain. Since the commencement of the season to May 31, 543,000 sacks of oats have been carried over the railway to Bluff, as against 508,000 to the corresponding date last year. Only 130,000 sacks remain at Bluff now, and of these a large portion is said to have been negotiated for for June and July shipment. It is therefore seen that the farmers' holdings in store at Bluff are perhaps less than was anticipated. The demand from Auckland has of late been altogether off, and it is known that they have some stocks in hand. When these are- exhausted recurrence will again have to be made to Southland, which district commands the oat position of the Dominion in a very large measure. The firmness in potatoes is well maintained, and prices are going well up to £6 per ton for good quality. The shipment taking place is for North Island ports. There is an embargo against trade with the Commonwealth, end no shipments have been made there. Chaff is forward in ample supply, and prices, though not reduced, are barely maintained. Eggs have come forward in good supply, with the result that prices have dropped 3d to 4d on the week. Bacon and pork continue firm. Current prices are as follow: Chaff.—Prime oaten sheaf, £3 15s to £3 17s 6d; medium to good, £3 5s to £3 10s; inferior, £2 10s and upwards per ton (ex truck). Potatoes. —Prime Up-to-Dates, £5 17s 6d to £6; medium to good, £5 10s to £5 '.ss: inferior, £4 10s and upwards per ton. Onions.—Market firm, prices improving. Prime Canterburys, in centals, £4 per ton (ex store). Eggs.—Fresh, Is 8d to Is 9d; stamped, Is lOd. Butter.—Brisk demand, supplies coming forward slowly. Dairy, 9d per lb; milled, ,10d; separator, in ilb pats, lid. Pigs.—ln more plentiful supply. Baconers, 3fd per lb; porkers, 4d. Bacon.—Rolls, 7gd; boneless hams, 9£d; sides, 6|d; hams, under ,201 b, 9d per lb; pork Germans, in 141 b tins, i four tins to case, sd'per lb. FRUIT REPORT. Contrary to expectations based on the past, show week has proved disappointing to wholesale and retail fruit merchants. This is perhaps accounted for by the poor supply available in the market, there being nothing of exceptional merit forward. What strong demand there is is centred upon dessert pears and apples. As regards island fruit, oranges and bananas are both likely to be short, with prices ruling higher. A shipment of 51 cases of bananas came to hand in the Suva boat, and was sold N at from lis 9d to 12s 9d per case. There is every likelihood of oranges ruling higher in price, as stocks in wholesale hands are diminishing, "with no further- supplies probable till the Rai'otongan boat arrives on June 21. A few Rarotongan bananas were forward, but owing to the poor condition in which they arrived they realised only from 2s 6d to 10s per case. Vegetables are in very poor supply owing to the ravages of the blight, and will continue so till the coming of the spring supply. The prices ruling are as follow: Oranges.—Market about clear. Rarotongan, landed, 6s to 7s per case; repacked, 8s 6d. Bananas —Market barely supplied A few Tongan, in very poor condition, 2s 6d to 10s. Lemons.; —Barely supplied. South Aus-

tralian, 10s 6d to lis 6d; Sydney, 9s W 10s.

J Apples.—Market better. Cookers, 3s 6d to 5s per case; dessert, 4s to 7s; windfalls and inferior sorts hard to place; prima cooking, lid to l|d per lb. Pie Melons. —Market bare. Pears.—Choice Winter Nelis and Winter Coles from 10s 6d to 13s per case; others from 5s to 8s; inferior from 2s 6d to 4s. Market barely supplied. Grapes.—Local, 8d to lOd; choice. lOd to Is 8d; extra choice Grc6 Colman 2s. Tomatoes. —Supplies about over. Chrisfc-chu-ch hothouse, 5d to 7d; choice local hothouse, from 8d to 10gd. Vegetables.—ln short supply. Cabbages, from 2s 6d to 5s 6d per sack; loose 3s 6d to 5s per dozen. -Cauliflowers, Is 6d to 5s 6d per sack; choice from 4s to 5s 6d per doz. Boetroct. 6d per dozen. Horseradish, Id to 2d per lb. Vege',able marrows, 5s 6d to 6s 6d per sack. Honey.—Choice, 4d to per lb; lOIfa" tins, -3s 3d to 3s 9d ; choice sections, 5s 6d to 6s--6d per dozen; medium, 3s to 4s 6d per dozen. ' Peanut?.-—Java, 2d; Japanese. 2gd to 3d. Walnuts.7—Good demand; to 7d per lb. Barcelona nuts, s£d to 6ad. i IMPORT MARKET. Business throughout the week has been reported as being gcod and of fair volume for the time of year. The Aparima brought a small shipment of pineapples, which in some measure replenished a low market. Prices continuefirm at 5s 9d to 6s for 21b tins, and 4s 9d to 5e for 141 b cubes. The same vessel also brought a supply of sago, which was in very short compass locally. The stock brought is less than the requirements, but the price is the same as formerly—namely, 18s per cwt. Tapioca also cam; by the same boat, and is q-ioted at 13s 6d per cwt. The Waimate, which has iust arrived, brings soma lines which are badly wanted. Chief among these are: Lea and Perrins's sauce (pints and half-pints), Enjrlish split peas, Sapon, Coleman's starch, Royal sardines, Luoca oil in quarts, Peck's salmon and shrimp paste, and ham and chicken | A small parcel of dedicated cocoanut has ! come to hand. Prices are still 5 3 d for chests, and 54/1 for half-chests. ! In the hardware market there & r « n + ! local alterations. It is to be noted that : the Home position reveals continued nrm- : ness. in many staple lines.