THE CONSUMPTION OP WHEAT 13 



The movement can best be studied from the graph. 

 Here a fall is noticed in the harvest when wheat is 

 plentiful, after which a slight rise occurs until early 

 spring when price drops a little. But the expected rise 

 soon follows, and during November price is fairly steady, 

 with a slightly falling tendency which develops into a 

 rapid fall in December. This fall, which is maintained 

 throughout January and February, and continued into 

 March, may be accounted for by the fact that farmers 

 are offering their crops in advance. It is significant 

 that such a fall is distinctly in favour of the millers, 

 who are able to command a strong position. But the 

 influence of the Australian harvest on prices in New 

 Zealand is an important factor in some seasons. 



It is highly probable that the assurance of the success 

 of the Commonwealth crop has a depressing effect on 

 the market in New Zealand. But when all things are 

 considered the conclusion is forced upon us that wheat 

 prices vary only slightly from month to month in normal 

 years, and it is doubtful whether it would pay the 

 average farmer to store his wheat until the period of 

 highest prices, which usually occurs in the early summer. 



