WOOL AND BUTTER PROSPECTS

Timaru Herald, Volume CXLII, Issue 20510, 31 August 1936, Page 9

WOOL AND BUTTER PROSPECTS

REVIEWED IN OFFICIAL SUMMARY NEW ZEALAND POLITICS DISCUSSED United Press Association—By Wectrlc Telegraph—Copyright (Received August 30, 6.30 p.m.) LONDON, August 29. The general opinion of the trade is that the Australian wool season opening basis will be closely in line with the current spot values in Britain. Urgent substantial United Kingdom requirements should be sufficient to ensure a healthy demand on the Australian market for some weeks, after which it is hoped here the Japanese difficulties may be resolved. Prominent Bradford firms believe that Japan cannot be so foolish as to scrap standard lines of wool goods, on which she has built up her world-wide trade, which long abstention from the Australian market would oblige her to do. Whatever happens in respect to Japan, Britain is hungry for wool. Large imported supplies last year were liquidated with surprising freedom. At present something of a squeeze is fejt, and there is every prospect that the United Kingdom buyers will rush to get wool as quickly as possible. Sympathy is growing for Australia in her dispute with Japan. New Zealand’s Part “The Economist” discusses the New Zealand situation, paying tribute to the Government’s moderation in the exercise of its new powers. However, it expresses apprehension lest the Reserve Bank should become involved in the dual incompatible business of central and commercial banking. Moreover, it is scarcely just to deprive the trading banks of remunerative business, while expecting them to provide complete banking facilities for customers, at little or no direct cost. New Zealand ought to temper its zeal with circumspection and avoid crippding or restricting the existing machinery of commerce and finance. Stock Markets Firm Although the volume of business is slight, the stock markets remain remarkably firm. Home industrial news has been encouraging, and the city business men are inclined to regard the European situation more optimistically in view of the Italian and German adhesion to the arms embargo. The gilt-enged market has been especially firm. Australians arp attracting buyers. Industrials are steady. Commodity Markets Commodities have been uninteresting, with the exception of the burst of speculative activity in -cocoa, which is regaining its former popularity. The price now over £3l per ton, is the highest for years. Business in wheat is practically at a standstill. Millers are holding off in face of falling prices, bearing on the reports of crop prospects in Europe and the Southern Hemisphere. Butter is also quiet but statistically the position does not warrant an appreciable break in prices, but buyers are getting very cautious. Rubber is slightly dearer, owing to the Russian demand. The Soviet imports in the past eight weeks have doubled, compared with last year. Metals are also steady in demand with rising prices.