POSITION OF OAT MARKET

Southland Times, Issue 24545, 20 September 1941, Page 3

POSITION OF OAT MARKET

Farmers Want Better Price (Special) DUNEDIN, September 19. The position of the oat market today in Otago and Southland, and no doubt in Canterbury as well, is considered to be distinctly unsatisfactory. On March 28 of this year the Government issued a price order under which A Gartons were to be sold at a maximum value of 3/11 f.o.b. s.i. It is now common knowledge that the Government entered into a contract with the millers in New Zealand some time ago to supply a large quantity of oatmeal for soldiers overseas, and this order, naturally enough, has meant a greater demand for oats. Supplies have gradually been depleted and farmers have been reluctant to part with their holdings. The position has now become acute as farmers refuse to part with any more of their oats at a value equivalent in the country to 3/11 f.o.b. s.i., and there is also a keen and unsatisfied demand for seed oats. The price order is now making it very difficult, in fact impossible, for merchants to secure oats. It is imperative that seed requirements should be met for the coming season’s crop, which will be seriously reduced if the present position is not remedied. Millers an* now, in the circumstances, forced to contract for the purchase of new season’s oats on a much higher basis than 3/11 f.o.b. s.i., and it is not certain yet whether they will secure any increase in prices for the oatmeal which is being manufactured for the soldiers overseas as well as for consumption in New Zealand. MILLERS’ CHOICE Millers, however, are faced with the position of either offering the growers a price above that fixed or going without supplies, and they have accepted the only choice open to them. The price at which the millers have contracted for the new season’s oats is on the basis of 3/6 net a bushel, on trucks, country sidings, for oats suitable for milling, a value appreciably above the shipping price of 3/11 f.o.b. This increased price has stimulated the demand for seed oats for the coming season’s harvest, but merchants are having the utmost difficulty in securing seed lines. There are, however, sufficient oats in the south to relieve the position, but holders simply decline to sell their stocks at the equivalent of 3/11 f.o.b. s.i. It is not clear whether the millers, who are offering higher values than the fixed price of 3/11 f.o.b. s.i., or the farmers, who are holding out for a better price, are offending against the order. Merchants do not blame the growers for asking for higher prices in view of the increased costs of labour on the farm. The next move is apparently with the Government.

OTAGO PRODUCE MARKETS

POTATO SCARE FAILS (P.A.) DUNEDIN, September 18. Business in the milling wheat continues almost negligible, as last season’s crop is now practically all cleaned up. Nominal business is going through in fowl wheat. The wholesale value of this quality remains unchanged at 5/10 a bushel, sacks extra, ex store, with higher values ruling for small quantities. The bulk of the local requirements of chaff is still being drawn from Canterbury. Prices are unchanged. Interest in the seed market is chiefly in white clover, and perennial and Italian ryegrass is also receiving attention from exporters. Values of all these seeds remain firm at recent rates. Stocks are gradually being reduced as the season advances. It is interesting to record that notwithstanding the shipping difficulties a larger quantity of seeds has been exported from New Zealand than has been customary. The market for Chewings fescue and browntop remains quiet and little interest is being shown in these two varieties of seeds. Stocks of potatoes in local stores are quite sufficient for immediate requirements and wholesale prices remain unchanged at £lO to £lO/10/- for freshly picked Arran Chiefs with King Edwards saleable at £ll to £l2 a ton. There has been an attempt to create a scare in the market, but this attempt was quite unwarranted by the present outlook and has been unsuccessful. It would seem, indeed, that the market is stabilized at current prices and that these will prevail until the end of the present season. CANTERBURY MARKETS (P.A.) CHRISTCHURCH, Sept. 19. The wet weather recently has held up country work, and though some seed wheat has gone out this week it is probable that many farmers who would have sown spring - /heat will now have to sow ->eas or barley instead. It is unlikely that this will have a great effect on the total acreage, as the weather in the autumn was almost ideal for getting the crop in. A certain amount of retail trade in small seeds is passing and should increase when the weather settles. Potatoes are very quiet, with little business. It is not yet known what Quantities the Government will land in the North Island and until this is known the market here is likely to remain quiet. Good onions are becoming increasingly scarce and are now worth £l5 to £l6 a ton. COLOMBO TEA SALE J. Rattray and Son, Ltd., have received the following report on the tea auction held in Colombo on Tuesday:— The quality of the offerings showed a seasonal decline with a firm market and advances for all grades. Common teas were Id to Id dearer, medium kinds Id dearer and fine teas Id to |d higher. SALE OF SHOW PONIES Two show ponies will be offered at the Wyndham saleyards on Thursday, September 28, on account of Mr A. Duncan, son of the late Mr Alan Duncan, of Invercargill. Mr Duncan was formerly inspector for the Society for the Prevention of Cruelty to Animals. One of the ponies is a black gelding, aged seven, and is an outstanding harness pony. At Southland shows last season it was awarded one championship, two reserve championships, six firsts and two seconds. The other is a chestnut mare, aged four. Last season she was awarded one first, one second and a reserve championship.