THE OATS MARKET

Otago Witness, Issue 3398, 30 April 1919, Page 10

THE OATS MARKET

THE VIEW OF A LARGE OPERATOR. One of the largo operators in oats, commenting on Monday on the report communicated by tho Press Association in our issue of Saturday last to the effect that there are indications that oats aro not going to be in such superabundance in Canterbury as we have been led to believe, made the following statement: — "Auckland merchants and their brokers have been doing their level best to demoralise the market and beat prices down, but apparently tho farmer is not going to be browbeaten into accepting whatever prices buyers come along and oifcr him for his oats. Forward sellers are beginning to realise this, as they are making frantio efforts to cancel their contracts and apparently some buyers are agreeing to that course rather than put up with the humbug and annoyance attached to the matter of getting lines delivered at suitable ports and at a suitable time to catch a partioular steamer. Canterbury merchants have been scraping and scouring the country in an endeavour to keep faith with their commitments for April, and quantities duo thia month have been contributed in dribs Jmd drabs, of 40, 50, 70, and 90 sacks at 's. time from various stations, thus indicating what difficulty sellers have experienced in procuring supplies from the grower. In spite of all this Auckland merchants and merchants In many other towns will /persist in wiring and writing a lot of nonsense about A and B grade Cartons being procurable at from 3s 9d to 3s lOd, f.0.b., s.i.. for forward dolivery. What they aro all /ailing to realise is tho difference between the Auokland 'paper' oats and 'actual' oats. Np one in tho business donies that the •ale of hundreds of thousands of sacks of (pats has been transacted and recorded on jbapor, but what we do deny is that the yiniers of 'actual' oats have undertaken to

supply any material quantity of the sales effected. In fact fe ..with the exception of an odd farmer here and there, who has been tefcipted to sell, all the oats are practically still in the growers' hands. I know for a certainty that one of the biggest brokers in Christchurch hunted round for two days to get a quotation for actual oats, and the very best he could succeed in picking up was a quotation for 250 A's 'at 4s 2d and 500 B's at 4s H, f.0.b., s.i. Business has already been done with Australia at these figures, and, judging from latest reports, there is likely to be an outlet a little later on for a considerable quantity of New Zealand oate. It has been reported that sales aggregating something approaching 25,000 sacks were cancelled last week in Christchurch on the basis of 3s 7d and 3s Bd, ,f.0.b., s.i., but these are presumedly 'paper' oats, and although _ the cancellation may relieve the immediate tension, it will, not have very much effect upon the enormous quantity which has been booked by forward sellers, and which, if demanded by the purchasers as they become due for delivery, will place the sellers in a very awkward position. Mary doubt the bona fides of the reported cancellations on the basis of 3s 7d and 3s Bd. and seem disinclined to believe that buyers would_ be so foolish to release sellers from their engagements at prices so much below even what Auckland merchants would have us believe are rulintr here and in Canterbury ports. One Auckland broker arrived here last week and was talkincr quite freely of his ability to Hell B Cartons at 3s 9d. f.0.b.. s.i.. with the—result that ha was asked to book 3000 sacks. He. _ however, replied that he would have te wire to his firm in Auckland before booking tho line, and this he apparency did. for word was received by-wire to the effect that business was impossible at 3a 9d. The offer was then increased to 3s lOd for the line, but so far there has been.no response. Growers havo tho future of tho market entirely in their hands, and in view of tho _ great Fcnrc'ty of winter feed throughout this dominion together with tho prcwet of an ooeninc in Australia, farmers would be very unwis» to aooeps the northern buyers' of value, and if they w'H onlv make ito ►ketr minds to hold on to their oats for some little tlmo at least, T feel sure tho market

wilt - right itself gradually, and prioes will become established on a reasonable level of values, commensurate with the prices at which the forward sellers have entered into their contracts.."