TRADE SUMMARY

Otago Witness, Issue 3495, 8 March 1921, Page 20

TRADE SUMMARY

LONDON. March 5. After a fortnight oi cluiiiess mid depression Uie Stock Jixciiange has taken a decided turn tor the better, with improved sentiment, not only in the investment sections, but also in tho industrial and speculative groups. The amount oi business don© shows little increase, but an optimistic teeling is prevalent. The chief cause is the premier’s masteriy presentation oi the Ailies’s case regarding reparation, but the announcement oi Sir Eric Geddes’s retirement from the Ministry of Transport and the probable end of the Government control of railways also had a stimulating effect on the railway section. The Australian exchange position is gradually improving, as wheat and other products are being shipped, but so far, bankers are unable to increase the trader's facilities to any great extent. The trouble is the accumulations of the past live months. Till they are removed the bankers cannot possess the freedom of action necessary to put the trade on anything like the old basis. Movements in the wholesale prices of commodities during February were universally downward. The average level of 20 food commodities and 20 raw materials showed a decline of 9£ per cent., as compared with January, and 43 per cent, as compared with February, 1920. American cotton, crossbred wool, jute, rubber, and tin, are all bad, and aro all below pre-war level. Butter supplies continue and large stocks are accumulating, prices tending to be lower all round. Danish butter is ieducod to 216 s f.o.b. The Government’s last I distribution consisted of £0 per cent, unsalted Argentine, which consumers do i ct like. Consequently, it is mostly unsold. Although butter is very plentiful, tho Food Ministry is not reducing the price, as was confidently e.xoected. It is understood that the Ministry is anxious to reduce, but the Treasury refuses its sanction, as it will entail a considerable loss. Cheese is decidedly firmer. New Zealand white is at 147, 148, and coloured at 158, 160 s. No fresh New Zealand arrivals are due till the end of the month. There are hopes that the present values will be maintained till the end of April. The Government’s final distribution of imported cheese next Wednesday will clear the Government’s New Zealand stocks. Importers are well satisfied with Surreys. Australian is selling: White 1465. 148 s, coloured 1525, 1665. Tho wool sales, which arc just closing, demonstrated the weakness of demand and dulness in the consuming centres. Although present values are on so reasonable a basis as to encourage operations, American actiJ vitv has temporarily ceased, owing to the | uncertainty of tariff legislation. It is possible if may have a retrospective operation, but when the situation becomes clear, a steadier demand for good wools in that quarter seems likely. The Continental demand has been the stablest factor of the sales. Germany and France are both operating increasing, and Germany is once more making her influence felt on the ?8w material markets, which is an important step towards more normal conditions. Large stocks and financial stringency are hampering the wool trade in Great Britain. Retailors are holding out for- higher prices, based on the boom period rather than on the cost of replacement and until values ! of the retail end of the trade are adjusted | there cannot be a general revival of busi- ! The existing stock of .wool must be cleared, and costs, of production reduced before an increased turnover will be obtainable. Old stocks do not present the same diffioultv in America and Germany, where wool is go-ng as consumption, there becomes more steady. T OXDOX WOOT, SALES. LONDON. March 5. At the wool sales there was an average selection of British and Australian Wool Realisation Association. The reserves were high and loss than a-third were sold at late rates. New Zealand. St. Helens, brought 34J,d. Tho total offerings concluded the series. 72.507 being free and 57.807 British and Australian Wool Realisation Association. About three-quarters were sold. Th« next sales will be held on April 5c