WHEAT AND FLOUR.

Timaru Herald, Volume XIC, Issue 13438, 9 November 1907, Page 6

WHEAT AND FLOUR.

TIMAEU WHEAT MARKET KEEP ING UP.

Merchants report that the wheat market is very quiet this week. There is plenty of enquiry by both buyers and sellers; but little business is being done. One small line of red chaff was sold yesterday at 6s, f.0.b., so that it will be seen that the slump in Australia has not affected the market here, beyond, making buyers a little timid. They are at present holding off to see what is going to* happen. One merchant received a telegram saying that in view of the shortage of wheat the world over, the New Zealand market could not be affected. The rain in Aus tralia had not been sufficient to account for such a sudden as was recorded in the papers. One- merchant said that he thought the re-importations into Australia had something to do with the drop in prices there. He suggested that had been "bearing" the market with a view to creating a corner. in wheat. Another prominent merchant, discussing the wheat question with a " Herald" reporter was also optimistic regarding the local markets. The market here, he said, had received a check and buyers were standing off, thinking that prices might come back a little. Owing to the uncertainty of what the future would' bring forth, both in the way of an improved prospect in Australia, and the effect of the new Bill to attempt the regulation of nrices there was more enquiry than actual business. The "Herald's" informant- said he knew of one line of wheat which had changed hands six times during the past fortnight, each time at advanced prices. The effe?s of these sales and re-sales was to create a false impression of the amount of wheat in the country. There was not much wheat being held by farmers. He knew of eight growers in this district who

held 5400 sacks between them, but this amount would not go far if placed on he market. One farmer at Winchester r<?ld 1700 sacks for which 'ha- refused 6s on trucks a feAv days ago. In conclusion he said that, unless prices in Australia yer-e loav enough to alloAv flour to be in ; orted to New Zealand the prices hero Avould not be likely to recede for the pres ,;c.