THE WHEAT MARKET.

Gisborne Times, Volume XXVII, Issue 2484, 24 April 1909, Page 2

THE WHEAT MARKET.

SHORTAGE OF SUPPLIES, WILL NEW ZEALAND BE AFFECTED.

“It is impossible to say what effect the wheat gamble will have on values in New Zealand,” re marked Mr.- D. W. Vil’tue, agent for the New Zealand Flourinillers’ Association, to a Dominion reporter. Apart from! the transactions referred to in the cablegrams,' lie continued, values were likely to be affected because there was an actual shortage in the world’s supply of wheat In fact, he did not see what was to stop the price of wheat going higher. If values advanced at Home, the Australian and New Zealand markets would in turn be affected similarly. It was a case of follow the leader. Some authorities declared that the total wheat yield in New Zealand this season was exceptionally heavy, but others, whilst admitting that the yield per acre had been high, asserted that a less area had been laid down. He had hoard that a large proportion of the grain was too soft for milling. Farmers in the south were so well off that they could afford to wait and see if the market improved. So far as he was aware wheat had not been offering too freely. By holding on last season, farmers had done well. Wheat was a shade dearer than it was at the opening of last, season. There had been a slight increaso in prices recently. It might, have been the case •that farmers held over large quantities; but the millers held over very little grain. VIEWS OF A LEADING BAKER, According ..to Mr. W. A. Ivellow, president of the Master Bakers’ Association, prospects look black. From what lie could learn—and lie had reliable sources of information —wheat was going to be dearer, and consequently rises in the prices of flour and bread would follow. For the past two years or so the price of flour had been above the normal,-which was from £9 10s to £lO per ton. This time last year the price was £ll, and now it was £ll 10s, to which had to be added charges to Wellington, totalling 12s. The price of wheat and flour was ruled by the values in London. If the surplus} of New Zealand wheat were exported, it would of course make a difference here for a time. But the available quantity ..for export would only be a bagatelle iU the Home markets; it would only he sufficient to feed the inhabitants of London for two days. Fie had it on the best authority that there had been an abundant harvest this year, and the quality of the grain was first-class. The new flour which was coming to hand was a splendid article. Very little of last season’s wheat (so he had been informed) was held over by millers. If the flour held at the present prices the bakers would not be able to sell the bread at present rates, which were fixed on the basis of £lO 10s, f.0.b., for flour. Compared with the price of flour, cost of labor, etc., bread* was cheap just now. He anticipated that it would be found necessary to advance the price of bread by -Jd for a time, at any rate. MERCHANT SUMMARISES TFIE POSITION.

For some time past, remarked Mr. G. Shirtcliffe (of Messrs. A. F. Patterson and Co.), the statistics have pointed to the probability of the world’s requirement out-stripping the supplies. At the present moment, Beerbohm, who was recognised as, perhaps, the leading authority, estimated that the needs of consuming- countries exceeded the available supplies by approximately eight million bushels.' It was evident that the statistical position had become sufficiently, strong to enable American speculators to form a partial corner in wheat, and that no doubt accounted for the excitement that had been created both in the United States and in the Old Country. Up to tne present time, as far as could be seen, there had not been an actual shortage of supplies, and the rise in prices must consequently be attributed to the strength of the statistical position. Australia had already reaped substantial benefit from the advance in prices, the latest sales of Australian cargoes being reported at up to about 42s 3d per quarter s.i.f., U.K., whilst the present f.o.b. quotations stood at an even higher level. He would say that the _ improvement that had taken place in the London market could not fail to reflect to some extent here, although it must he borne in mind that New Zealand wheat could not command as high prices in London as could be obtained for tbe higher and stronger grades that we have grown in Australia. Indeed, the southern prices had already made a substantial advance on those ruling at the opening of toll season, and to-day’s .quotations of about 4s 2d to 4s 2?>d f.o.b. New Zealand shipping ports must be on about par with London quotations. It is impossible to express anything like a reliable opinion as to the prospects. Whatever movement took place in London must influence New Zealand values accordingly. For the present, importations of flour from Australia to New Zealand had practically ceased owing to the extent which the iuarke+ had ad-van-c-ed on the other side, and so far as one could judge such ' importations were not likely to be renewed at any early date. At the present moment the price of flour in New Zealand was not at all out of proportion to the cost of wheat to the millers, and was substantially less than Australian flour could be laid down at. IF PRICES BECOME UNREASONABLY HIGH? It is interesting to recall that under the Flour and Other Products Monopoly Act, 1907, it is provided that despite anything contained in the Tariff Act, 1907; it shall be lawful for the Governor at any time, on- the recommendation of the Court of Arbitration, to declare' that on anc? after a date to be specified, flour, wheat, and potatoes imported into New Zealand shall he admitted free of all duty so long as the order remains in force. From time to time, by direction of tlie Governor, the Court may make enquiry as to wliother tlie wholesale market price of flour in New Zealand is unreasonably high, and if the Court finds that it is so, it. shall recommend the Governor to exercise the powers conferred upon him. For the purpose of enquiry the price of Hour shall be deemed to be unreasonably high il (a) The average price .of flour in New Zealand is relatively to the price 6l wheat in New Zealand higher than the average price of flour in Australia relatively to the average price of wheat in Australiaj unless in the opinion of the Court the additional ,price is justified by the additional .cost of production, or , ■ , . (b) If the. average price of wheat in New Zealand has, by reason of any combination among the holders of stocks, or by reason of any complete or partial monopoly, eotabLukcU-. by any such holders! been raised aboia jpbe