FIRMNESS OF HOME MARKET

Timaru Herald, Volume CXLV, Issue 21127, 29 August 1938, Page 7

FIRMNESS OF HOME MARKET

UNCERTAIN COMMODITY OUTLOOK United Press Association— By Electric Telegraph— Copyright (Received August 28, 6.30 p.m.) LONDON, August 27 Wild fluctuations in home rails reveals the City’s growing concern regarding the trade outlook. The trend of traffic is dispelling the hopes of an autumn recovery. The returns for electricity consumption are also discouraging and indicate that the light industries are now feeling the full effects of the recession. In view of the unhopefulness of the home situation, the behaviour of the stock exchange is gratifying, but it must be remembered that the firmness rests upon an almost negligible volume of trading. London expects an acceleration in the pace of the United States revival, especially as there is no evidence that the pump-priming programme has begun to take effect. Mild Optimism Justified The behaviour of commodities indicates mild general optimism for the remaining months of the year. Metals with the exception of tin, have been firm. Lead has been strong and active since the talk of the formation of some kind of cartel. Business in Yorkshire is quiet, pending a lead from the Australian sales. The general feeling is that prices will open more or less in line with present quotations. Bradford and France are expected to be considerable purchasers in the forthcoming months, as the export trade is gradually expanding. World values are now regarded on a sound basis and are likely to encourage consumption. Butter has remained quiet. Buyers are apathetic, even in the face of an improvement in Danish and other Continental butters. There have been large offers for Canadian, but It is impossible so far 'o effect sales in useful quantities. It is expected in the next six months, moreover, that exports from Europe will be fully up to last years. Consequently it does not appear that the market will have the customary autumn rise. Consumption remains steady at about 500 tons a week l.ss than in 1937. There is little prospect of improvement unless butter is retailed in the region of 1/- a lb.