TRADE REVIEW

Southland Times, Issue 18928, 30 April 1923, Page 5

TRADE REVIEW

THE BUTTER DECLINE APPLE MARKET UNFAVOURABLE (By Telegraph—Press Assn.—Copyright.) (Australian and N.Z. Cable Association.) LONDON, April 28. (Received April 29, 11.5 p.m.) The Foreign Exchange market has been quiet, the only feature being the fluctuations of the mark. According to the Econ. omist it would appear that the recent break in the mark was the result of no settled policy but would seem rather to be due to the Reichsbank suddenly losing heart on the particularly strong outburst of the demand for foreign currency. The Government and the Reichsbank now seem determined to carry on a policy of stabilisation but the higher level and the raising of the bank rate to 18 per cent, shows the lengths to which the authorities are prepared to go.

Butter continues on the downward course and though some optimists consider the market has touched bottom, supplies are so large that a further decline would not be surprising especially if the Danes continue their present policy of forcing prices down in order to clear their shipments each week. Danish to-day is quoted at from 156/- to 160/-, a decline of 15/- since Monday. In the face of such action it is impossible for holders of colonial to maintain prices. The chief hope of recovery is that the lower retail price of 18d now ruling may stimulate consumption, which should increase considerably at the expense of margarine. The apple trade does not show any improvement. Prices at London, Liverpool and Hull are equally disappointing. The only apples realising above 10/- are Cleopatras and Dunns and occasionally some Coxs. A large proportion of apples are making 6/- to 8/- and some 8/6 to 9/6. One of the largest importers estimates the cost, of landing apples here at fully 10/- a case, so that the present prices represent a serious loss to shippers. Apparently the selling price of apples has got back to prewar level, while the costs, charges, freights, etc., are almost double the pre-war figures. Importers are complaining bitterly of the poor quality of Tasmanian apples, of which many are immature and rotted, comparing most unfavourably with Oregon and Washington of which considerable quantities are still arriving. Some are rather wasty, but good lots are selling readily at 8/3 to 13/-. One Liverpool importer reports that in his opinion the Tasmanian shipments commenced much too early. He urges the Government to prevent such early shipping in future. If supplies of the Americans continue so late in the season, many early Tasmanian varieties ought not to be shipped, for obviously, while good Americans are available, there is little chance of immature Ristones and Alexanders fetching remunerative prices. Although the wholesale prices are so unsatisfactory, some shop-keepers are asking exorbitant prices. One large West End store in a weekly price list offers Australian Jonathans by the case at from 27/6 to 28/6. Importers regard this price as outrageous and some of them are protesting to the managers of stores. Following the reduction in the estimates of the Cuban sugar crop to 3,670,000 tons compared with the turn-out of 4,102,000 tons last reason, there his been wild purchasing of Cuban and prices have risen greatly. The advance is likely to continue. Supplies during the next few months are expected to be below requirements and the position is unlikely to be relieved until late in the autumn when the European beet crops come along. The advance has been serious for many retailers who refrained from buying some time before the introduction of the Budget in the hope that the Chancellor would reduce the duty. The reduction failed to materialise and since the Budget the refiners raised their prices 2/9 a cwt. As a result small retailers have been compelled to sell below cost to meet the competition of multiple shops. Now prices have been raised all round; loaf sugar is Bjd and 7Ad. Jam manufacturers are also likely to advance prices.

The Stock Exchange has reaped the benefit of the satisfactory Budget. Both giltedged and industrial groups have been active. British funds have improved all round, especially the conversion loan, which shows an advance of 6| since the beginning of the year. The improvement in gilt-edgeds generally may be attributed largely to Mr Stanley Baldwin’s generous provision for debt redemption, while industrials have benefited by the reduction of the income tax and Corporation’s profit tax. Another contributing factor to the cheerfulness of the stock markets is the more optimistic view being taken of the European political situation.