TRADE SUMMARY

Southland Times, Issue 20539, 16 July 1928, Page 7

TRADE SUMMARY

POSITION IN BRITAIN AWKWARD PERIOD FOR STOCK EXCHANGE HARDENING IN BUTTER MARKET (United Press Assn.—By Telegraph—Copyright.) (Rec. 5.5 p.m.) London, July 14. The Stock Exchange passed through a somewhat awkward period, not due to anything here, but to conditions abroad, chiefly’ unfavourable money developments in New York with an advance in the Federal Reserve Bank’s rediscount rate to five per cent, and forced liquidation in Paris and Brussels in connection with the Lowenstein catastrophe. Even the gilt-edged market has proved susceptible to these adverse influences, and although leading stockshave only showed fractional declines there seems little hope of any early improvement in them for the present. In some quarters fear is expressed that the rise in the Federal Reserve Bank rate will necessitate an increase in our bank rate, but a well-informed financial writer says that there is no need for anxiety. The Bank of England is in a stronger position than it has ever been since the outbreak of the war. The exchange is certainly moving against us, but it is still a long way from the point when it would be profitable to export gold to the United States, and it is evident that the situation compared with a year ago has altered very much in our favour. So it seems improbable that a rise in the bank rate will be necessary. On the other hand the present rate is likely to become more effective and discount in the open market should have a further advance. The butter market continues to harden and the demand is improving. Many people in the trade are looking forward to higher prices, especially for choicest Al first grade qualities during the next few months, and there is some speculative buying. One factor contributing to the firmness is active buying on the Continent, especially Germany, so that supplies are being well absorbed. Cheese has also a very firm market. Canadian prices are too high for our buyers, and w’ith New Zealand supplies on the short side and English also scarce, values seem likely to harden still further. The Australian and New Zealand apple season is finishing satisfactorily, for though arrivals during the last week at various English ports aggregated 250,000 boxes, the demand has been so good that prices have been maintained. For this we have to thank the spell of hot weather we have had for a fortnight, which has given enormous stimulus to the consumption of fruit of all kinds, so that although the market is well supplied with both home-grown and Continental soft fruits the demand for apples is sufficient to clear all arrivals and we have not had the end of season slump in prices which was often previously experienced. A feature of the apple trade this season has been the heavy sale at Hamburg where 17 steamers landed 666,885 boxes from West Australia, South Australia and Victoria. This is easily a record for Hamburg and importers there are claiming that the Hamburg market is regaining its old position as one of the most important centres for the distribution of Australian apples, and they are carrying out an extensive “eat more fruit” propaganda campaign. To this they attribute success in selling such a large quantity of apples at prices which they claim average about two shillings a case more than was realized in other markets.—Australian Press Association.