IMPROVING CONDITIONS

Taranaki Daily News, 20 June 1930, Page 11

IMPROVING CONDITIONS

WOOL TRADE PROSPECTS. BUTTER MARKET CONDITIONS. (Special Correspondent). Wellington, June 18. It is generally admitted that wool values .havo reached a point of stability, but there are many who expect prices to go in tho past season dropped 'very considerably, selling at times below pre-war level, but there were many factors operating to depress the market, the chief of these "being the New York Stock Exchange slump, which caused such world-wide disaster. Another factor has been the trouble with the wool textile workers in' the Bradford district. Happily this has now ended. With cheap money'ruling the conditions point to steady trade at about the present level of prices, with some fluctuations .within a moderate compass. Butter has improved in value, but an advance of 6s per. cwt in a week points to some special circumstances, of which we can have no knowledge. Current London quotations are 133 s to 134 s per cwt for finest salted, which shows a slight improvement on the previous week. But it is reported that buyers for f.o.b. shipment are offering Is IJd per lb in the Auckland district, which is the equivalent of 138 s in London. This, seems to indicate that buyers anticipate higher prices in tho autumn, and this is somewhat remarkable in view of the comparatively heavy stoqk and the fact that the European output is larger than usual and is tending to expand. The heavy stocks must pass into consumption if there is to be an improvement next season. Even if New Zealand butter reaches 138 s there is no guarantee that it will stabilise at that figure; on the contrary, with tho heavy carry over and prospects of increased output prices must recede. There will be constant fluctuations, and it will be surprising if the price reaches 1495. The average price for the season now closing must be many shillings less than last year, and unless we can make definitely certain that prices will again touch 165 s it will be imperative to revie vz costs of production with a view of reducing them. Land values, too, will have" to be-written-down; * :