THE FLOUR MARKET.

Wanganui Herald, Volume LIII, Issue 16035, 28 January 1920, Page 6

THE FLOUR MARKET.

DEMAND IN CHRISTCHURCH,

PROSPECTS OP A RISE.

CHRISTCHURCH, January 25. Now that the sugar situation has eased a little, an abnormal demand for flour has developed in the city, and as millers are unable to cope with the position, supplies are being regulated. Grocers are limiting quantities to customers in moat cases to 251b. lots. Two factors have largely given rise to the present position. One is that there is a probability of a rise in the price of the new season’s flour, and the other is that before the year is over there may either be a scarcity, or the quality may deteriorate. Millers’ stocks are low, as they are on the eve of a new season. They state that if the demand had been normal, the present trouble might not have occurred. In any case, in their own interests, millers are likely to prevent grocers, bakers and others from stocking up with flour at its present rate, in case there is to be an increase shortly in price. The position as to supply is been somewhat accentuated as one large mill has been closed down for several weeks for overhaul of machinery. Some relief is now in sight, for the Kauri is at present in Lyttelton with 26,000 sacks of Australian grain. A food deal of this, of course, may be ©pt for mixing with new wheat. This will bo necessary ,to take the place of the Hunters and Pearl varieties, the sowing of which has fallen off, and is required to “strengthen” the flour. It is not known whether the price of flour will be increased to correspond with the increase in the price of wheat. At present millers are paid a subsidy, and flour is thus kept down to ,£l3 a ton. The system of subsidy apparently is to be retained, but the amount may be revised. In any case it is possible that millers may be allowed to charge a higher price for bran, one of the byproducts of wheat, as an off-set to any increase in the rate of flour. Whether bran could stand the rise in price will depend on that ruling for chaff. Last season chaff was dear, and bran could have «old at a higher rate. The whole subject, it is understood, will be discussed at a conference between the Government and the flour-millers.