COMMERCIAL

Gisborne Times, Volume XXVII, Issue 2601, 8 September 1909, Page 6

COMMERCIAL

♦ HOME MARKETS. N United Press Association — CoPYiuom (Received September 7, 10.30 p.m.) LONDON, Sept. 7. Copper: Spot, £59 Is 3d; three months, £6O; electrolytic, £6O 10s. Tin: Spot, £137 6s 3d.; three months, £l3& 10s. THE WORLD’S WHEAT MARKET. An English newspaper says:— . It is reckoned by the best authorities that .at the presnt time the visible supply, in round figures, is three million quarters less than it was twelve months ago, and it is to this fact that the recent increase in price must be ascribed. It is made up in this way: Farmers’ holdings 1,000,000 quarters, merchants 1,450,000, and on passage 3,870,000; total, 6,350,000, as against 9,350,000 at the corresponding date last year. Against this shortage there is a surplus of nearly L} million quarters' in the United States, but over there values are so big that none of the‘wheat is likely to come here until well over 40s per quarter can be got for it on this side.

The real question is that of the world’s production of wheat, for the failure of the crop in any portion of the globe has an immediate effect upon the markets in the big consuming centres. This is due to the increase in. the number of the wheat-consuming peoples of the world. The population of those countries which -subsist on bread has largely increased of late years, while, on the other hand, there has been no increase in the production. Take, for instance, the United States of America, which fifteen to twenty years ago sent up 60 per cent of our foreign wheat. Now we find that the demand in America has so enormously increased that, while the quantity imported into this country is greater than ever it was, the proportion coming from the United States has-fallen as low as 30 to 40 per cent of our total imports. In fact, it is certain that at no very distant date the United States will require all the wheat grown in that country to feed its own, population, so rapid is the rate at which consumption is overtaking production. The enormous areas of prairie land that- yielded wheat’ which could be put on the British market at 25s per quarter and leave a good profit to the producer are becoming played out, and it becomes essential that a system of farming in rotation analogous to that in force in England must be followed in order to maintain-the fertility of the soil.. Thus the . cost of -nroductipn is increased. ' Of late years Argentine has developed its agriculture to a wonderful- extent, .and corn comes in huge quantities from South America; but the Argentine crops this season have been a partial failure, with the result that stocks in this country became unusually depleted, and, as a natural result, these depleted stocks brought increased prices. To give some idea of the gradual increase in the price of wheat, it ie only necessary to glance at the following figures:— . . - \ s. -d. 1900 ... ... 26 11 per quarter 1901 ... ... 26 9 „ 1902 ... ..: 28 0 „ „ . 1903 ... ... 26 9 „ „ 1904 28 4 „ „ 1905 ... ... 29 9 „ „ 1906 ... ... 28 4 „ „ 1907 ... ... 30 7 „ „ 1908 ... . ... 32 0 „ Present time... 45 0 ~ ~ These figures are not obtained from alarmist sources, but are a true statement of the real .position, .of affaire, because thev are obtained by the Government. It will be ©eon that there lias --'v 3 n a gradual increase in the price of wheat for many years past, and it: seems certain that the price of wheat and flour will never again fall to the low levels experienced in 1894 and 1895. when tho average price was 22s lOd and 23s Id per quarter.