THE WHEAT MARKET

Gisborne Times, Volume XXVII, Issue 2523, 9 June 1909, Page 5

THE WHEAT MARKET

A SENSATIONAL. REPORT AND ITS CONTRADICTION.

(Per Press Association.'

AUCKLAND, June 8

Inquiries made yesterday elicited information as to the state of the wheat market, and if the position is as bad as represented, then a flour fam'u.o would seem to be imminent. It was explained that the reason- why flour is dearer in Auckland than in tho south is because practically' no wheat is grown in tins province, and local milters and bakers have to nay the cost of transport to Auckland,’which, with all incidental expenses, means a considerable item.

A gentleman prominently interested in tho bakery trade said that dear as flour now was at £l2 ,10s per ton in 'Auckland, it ought to bo selling .at £l3 her ton at Ic-ast, in order to allow milers a fair margin of profit. The mar, ket quotation for wheat in New Zealand was at present the lowest in the world, but it was very unreliable, to take as a guide, as farmers know their strength, and would not sell at that figure, the consequence being that the millers had to- pay through the nose. At the present time there was a great shortage of wheat throughout the world owing principally to previous non-bread countries, such as Japan -and China, now using bread as a chief article of 'iet, and drawing upon, the wheatproducing countries or the world. The consequence was that these countries were unable to supply the demand as well. as their local markets. It -was costing New Zealand millers too much to manufacture flour at present, and one Southerner had found he could make far more money by exporting wheat than by making it into flour. 'At present New Zealand bad a surplus of 2,000,000 bushels of wheat, which were, being hold tight. Two ships were bow on their way to New r Zealand, it kas stated, and two Australians wore coming over to buy up every available bushel of wheat in New Zealand. By August next there would in all probability be not a bushel left in the Dominion, and flour would at- least jump up to £l4 per ton with, of course, a corresponding increase in the price of bread. CHRISTCHURCH, June 8. Air. H. Wood, chairman of the New Zealand Fourmillers’ Association,-seen to-day re a message from Auckland that two Australians have left for New Zealand to buy up all the surplus wheat., that- two cargo boats are o'n their way out to ship the grain, and that by August next there will not be a particle of wheat left in the’country, and flour and bread will strongly advance in price in consequence, said that he had heard nothing of the sort, and he thought-, that, if anything of the kind was contemplated, those interested would not have allowed any information to leak out before they had secured the grain. So far as he was aware, there had been no buying on any scale. In fact, for the past week br two business in wheat had been of a hand-to-mouth character. He looked upon the information as being of tho nature of a-canard or as having been put in circulation by persons who are probably anticipating the dissolution of the Association, and are desirous of keeping up the price of wheat, Regaining the Association’s affairs, Air. ■Wood said that there was no news that he could give for publication. DUNEDIN, June S.

In consequence of a telegram from Auckland with reference to the position of the wheat market, predicting <a great rise in tli© near future, a ‘‘.Daily Times” reporter made extensive inquiries among those most intimately engaged in the trade to see what degree of truth was contained in the telegram. The essential point of this was that in proportion to the present price of wheat, the rate at which flour .was soiling was unremunerative to manufacturers, and it was said by a northern miller that the Auckland price of flour should be at- least £l3, in place of £l2 10s. A leading miller said the shipping .price of the New Zealand Fourmillers'’ Association was £lO 10s, f.0.b., less 2-V per cent, discount. To get the Auckland price you must add the cost of freig-ht~(9s) and .wharfage (Is 6d). Thus southern flour can be landed in Auckland at £ll 0s 6d on the wharf, and from this you deduct 2] per cent, 'discount, leaving the price to Auckland bakers £lO 15s. A southern iniilor lias even sold to Auckland at £lO •los, delivered int-o the bakehouse. If tho Auckland miller'sells to bakear at >£l2 10s, you must ask him what discount he allows.v The. position is that the Auckland bakers calculate the price of bread on the price of flour at £l2 10s per t-on, but they don’t pay that. They get big discounts. When the Auckland bakers can get the very best southern flour landed at their floors for £lO 15s, it stands to reason thev will not pay £l2 10s for it. There *is a mill in Auckland which poses as Clio working man’s friend, but which •is really working hand in glove with the bakers. It keeps the price nominally high, and allows heavy trade discounts. By threatening the bakers to 'reduce the price of flour, >and thus them to reduce the price oi bread to the public, it continues to do •business, but at rates which are really on the Southern basis. The miller expressed the opinion that the visit or 'Australians to buy up surplus wheat was unlikely. ,