THE PRICE OF STOCK.

Sun (Christchurch), Volume VI, Issue 1736, 6 September 1919, Page 2

THE PRICE OF STOCK.

A DECLINE POSSIBLE. LITTLE FOEWAED PURCHASING. With the new season's flocks now coining into being and the necessity for making plans ahead for their accommodation, a question which is naturally exercising the minds of pastoralists is as to the eventual trend of values. To attempt to speak with certainty concerning future prospects is generally unwise, but at present there are certain indications which, to dismiss lightly, would be just as foolish. Indeed, it would seem that a section of farmers, and a section incidentally which studies market conditions with extreme closeness, has not a great amount of confidence in what will occur early next year when store stock begin to change hands. Their attitude is deduced from a falling-off this season of purchases of lambs for forward delivery, which is pronounced by all accounts. And coincident with this reluctance to pay on an average of 20/- to 23/- per head for February delivery lambs, it would also seem that their is less land being prepared for rape and green feed, intended for the fattening of these lambs.. No doubt a part of the hesitation to pay ruling prices for forward delivery lambs is due to climatic reasons. There is certainly insufficient moisture in the ground to face the summer with confidence. The fact that in many localities the wells are below the level usual at this period of the year shows the lack of water in the subsoil. The presence also of the Romney cross in so many lambs is not a thing which is assisting sales, as these lambs are looked .upon with some disfavour by "fattening" farmers as they do not respond so well when removed to the new pasture. Indeed, business on the Peninsula, where the bulk of the forward purchasing is done, this season has been practically confined to recognised or standard lines. But possibly their main fear is as to the prospects regarding prices to be paid for fat stock. The factories have concluded a phenomenally successful 5-ear, not only in their live-stock buying operations, but also in the sale of byproducts. Items written off have come into undisclosed profits, and in cases shares haye been "watered" by creating fresh'issues of stock to shareholders from these. Naturally this has led to a considerable changing hands of shares. Now a good proportion of the shares held in the various companies have been bought at enhanced prices based on the prosperous times which the exporters have experienced. Obviously ,it is expecting too much to anticipate ■that the war-time prosperity, will continue indefinitely, but it is just as reasonable to suppose that profits commensurate with the present high level of shares will be looked for. So, "hard" trading and a constant endeavour by the companies to keep fat stock prices down is expected by many farmers. The fact that a great portion of last season's meat will be in the stores when the new season opens may later on assist in bearing down the fat stock market, just as a space shortage was taken advantage of in this respect early in the war, and again in the. closing months of last season. There, certainly seems some justification for the fear that the store market may weaken during January or February. Especially is this so if there is then any decided North Island competition; NATIVE.