TRADE SUMMARY

Southland Times, Issue 22040, 13 June 1933, Page 5

TRADE SUMMARY

MARKETS IN BRITAIN MORE HOPEFUL OUTLOOK FOR DAIRY PRODUCE WOOL PRICES FIRM (United Press Assn— Telegraph Copyright.) London, June 10. This has been a dull week on the Stock Exchange. Most of the markets have been inactive, but no weakness has developed, except in German bonds, which naturally fell sharply , on moratorium announcement, and in Kaffir mines, which suffered a severe setback as a result of the new taxation proposals and the resultant heavy selling from Johannesburg. The best section has been the gilt-edged market, which shows an all-round firmness, partly due to the improvement in the sterling exchange and the cheapness of money and partly to the, cessation of speculative activity in industrials, which have been more or less neglected, with the exception of brewery shares in which there have been considerable dealings, the consumption having been apparently increased materially since the reduction in the duty. Dominion stocks have been quietly steady. The lists of the Commonwealth conversion loan closed this afternoon. No announcement as to the result will be made till Monday, but it is generally believed the cash applicants will receive only a small amount. Commodity prices remain firm and show a remarkable recovery compared with three months ago. According to the Evening Standard barometer, which counts the average prices in 1930 as 100, prices averaged on June 8 <7.3 compared with 68.1 on March 2, the advance having been practically continuous. A satisfactory feature is the improvement in most Australian and New Zealand commodities, even hides, which have long been depressed, showing a considerable advance. Butter Prices Low.

Butter prices are still very low, but the outlook is regarded as more hopeful than for some time past, and although no great advance in values is probable, traders generally anticipate a gradual upward movement. The stocks in cold store certainly show an increase of 1,153,793 boxes compared with May 27. but against this may be set the declining production in Australia and the fact that this is the first time for many months that the quantities afloat from Australia, New Zealand and Argentina are smaller than at the corresponding period of Ij3~. tne present consumption, aided by hot weather, should make a considerable reduction in stored stocks. Tradeis apparently take a confident view of the position, for there has been a ‘s*l ge amount of forward buying, both _ot Australian and New Zealand, dining the last fortnight. The cheese position is also regarded as sound, the consumption being as large as usual in hot weather. The apple market is suffering from the effect of heavy supplies, and the prices realized for many varieties can hardly be remunerative. Fortunately apples have not met such serious competition from the soft fruits as expected, for the spell of almost tropical heat and the absence of rain have practically spoiled the strawberry crop supplies of which arc only about half the normal quantity and most of the berries are very small. They are retailing at 1/- to 6d per pound compared with apples at 5d and 6d. Ihe prospects for apples in the immediate future seem bad, because during the next seven days 637,000 boxes of Australian and 132,000 of New Zealand are due to arrive in the United Kingdom. Discussing the quality of Australian apples, a leading London importer says fruit from the mainland generally is satisfactory, but little praise can be given to Tasmanians which generally are rather of poor quality and overripe. These defects are reflected in the prices. . •. , The improvement in the prices or mutton and lamb during the past three weeks encourages a more confident outlook at Smithfield. The rise has been partly at the expense of beef, which is stagnant, but the low retail prices have caused a high consumption of mutton and lamb, which should continue if there is no marked rise in retail prices. The arrivals of mutton and lamb during the next few weeks will probably be light, and the. only factor likely to cause a setback is the possibility of a heavy supply of homegrown lambs which the hot weather may bring forward. Wool Prices Maintained.

Mr V/. P. Devereux, representative of the Australian Woolgrowers’ Council, reports that prices in all of . the wool centres are firmly maintained with a hardening tendency. The official statement that the German moratorium will not interfere with the financing of foreign trade and current business appears likely to remove some of the anxiety that at the beginning was felt in this connection. Merino tops at Bradford are very firm at last weeks higher prices. Users are reluctant to pay the advance, but topmakers are adopting a strong protective attitude, especially in view of the latest Australian reports. Crossbred tops continue to be stimulated by the advance in Merinos. Rather more business has been done in medium sorts at higher prices. Tire majority of spinners are well employed on the finer sorts of Merino yarns, and prices are very firm with a tendency against the buyer. There is an expanding interest in crossbred yarns, and higher prices are being asked. The recent improvement in France is being maintained. Sales of tops in Germany have been maintained at a good volume and prices have improved, especially for Merinos. The Continental futures markets are firm with an. upward tendency.