ON THE LAND

Southland Times, Issue 21949, 25 February 1933, Page 5

ON THE LAND

REVIEW OF THE WEEK GOOD FALL OF RAIN HARVESTING DELAYED Rain has fallen in plentiful quantities during the past 10 days and, although the pastures benefited, farmers with crops to harvest suffered inconvenience. There are a number of crops yet to be harvested. The rain was badly needed for turnips and pastures, but farmers with crops remaining to be harvested suffered and throughout the province many crops have yet to be cut. Although there has been a good deal of rain, the weat<:r has been warm and, in such circumstances, the moisture is apt to cling, especially in the absence of wind.

So far no new oats are offering, although there has been a good deal of ryegrass forward. The lamb schedule has dropped to 4.? d per lb. on a basis of prime lambs. 361 b and under. This makes a drop of |d per lb during the past month. Prices at different stock sales during the week, including Lorneville and Gore, must have been the lowest known for over 20 years. The majority, if not all, of the primary products of New Zealand seem to be finding lower levels every week and many producers wonder when the bottom will be reached. They consider that if only costs would come down proportionately something might be done, but standing charges appear to be difficult to reduce.

There is still a fair inquiry for land, but few suitable properties are offering, that is, suitable to the ideas of buyers. The Wheat Research Institute has to date received for testing 256 samples of wheat from the new season’s crop, and has milled and baked them. The average baking score is about six points above that of the samples received to this date last year, so that this season’s crop is equal in quality to that of 1931. This recovery to normal quality will be most welcome to millers and bakers, and shows that the difficult nature of last season’s wheat was purely the result of the abnormal drought to which the wheat was subjected during its ripening period. Stability of Prices.

From a sheep population of between 110,000,000 and 115,000,000 the yield for the Commonwealth this season should be approximately 1,000,000,000 pounds of greasy wool. There might be a considerable shortage in Queensland, caused by droughty conditions, and ’I is feared that the clip in New South Wales will not reach the aggregate quantity anticipated when early estimates were made. On the other hand, frem some of the southern grazing areas the yields have been exceptionally heavy, and it will surprise even the most conservative if the aggregate clin for the 1932-33 season falls short of *950,000,0001b. Placing the yield for the Commonwealth at that figure the gross proceeds should be slightly more than £35,000,000. Last season the realizations by the various selling houses aggregated £29,363,156, and wool disposed of in other ways brought in some £3,000,000 more, so that the total sale price of the 1931-32 clip was less than £32,500,000. If the proceeds from the sale of this season’s clip exceed £35,000,000 there will be a very welcome addition to the national revenue Nevertheless, these figures carry with them a grave warning. They show that despite a most bountiful, season over the greater part of Australia, flock increases to the limit of over-carrying capacity, and a record clip, the proceeds are far too low to maintain the stability of the wool-growing industry. To meet current commitments, provide funds for necessary repairs and upkeep, and combat the inrush of rabbits and other pests, growers require a gross return from the wool clip of not less than £45,000,000, but a combination of singularly favourable conditions is needed before the prospect of wool returns reaching £45,060,000 can be contemplated. Fortunately, the demand continues to be strong and healthy. If we take a wide survey of the wool markets we must acknowledge that values have reached a state of stability. Rates are extremely low, it is true, but there have of late been remarkably few fluctuations. A little irregularity for some types was reported from London last week, but at the Australian selling centres excellent clearances were made at firm rates. In New Zealand, also, vigorous competion was experienced, and in the South African market the demand for more wool has been stimulated by the movement of union currency away from gold. It is predicted that more wool will go through the mills of the world during 1933 than ever before. Wool is used in large quantities because it is cheap. With improved trading conditions overseas an era of better prices may return, but at present everything points to a continuance ox low wool values, and the most that can be expected is that current rates will be maintained for some time to come. . , People not in close touch with the wool market are prone to gain misleading impressions from reports of a few sales of specialty wool at spectacular figures. Recently in Sydney seme small lines were sold at more than 20d. a lb. One lot made 26]d, and another 261 d., which was the record price for the season on the mainland. In Tasmania these figures were eclipsed early in January and some of the choice wools still to be offered may defeat event the Tasmanian records. Such prices have, however, no bearing whatever upon the wool situation. They are for the top lines, usually of four or five bales, of the choicest fine wool clips, which are very rare. It is the avreage which counts, and values generally must advance if the average for the current season is to exceed 9d. a lb. Nor have the values of the choicest wools reached a level payable to the fine wool producers. The superfine quality merino wools, which are among the records this season, commanded twice as much money a few years ago.