10 WHEAT PRODUCTION IN NEW ZEALAND 



not warrant the establishment of such institutions as 

 exist in the United States of America for the marketing 

 of wheat. Sales are carried on in the leading provincial 

 towns by samples, the producers themselves approaching 

 the buyers (millers for the most part) and endeavouring 

 to secure a good price. The great disadvantage of 

 the system arises from the fact that a great many 

 farmers require immediate sale, and consequently there 

 is generally a slump in prices in the late autumn, owing 

 to the fact that millers have plenty of wheat. Reasoning 

 a priori, it is obvious that the price should show little 

 improvement during the winter months, but commence 

 to rise slightly in the spring. In some years, on account 

 of bad weather at threshing time, there may still be 

 sufficient wheat on the market, owing to spring threshing, 

 to stop this upward tendency or even to cause a slight 

 fall. The summer months should witness a substantial 

 rise owing to a general scarcity, but the approach of the 

 harvest in autumn once more brings prices down. 



Turning to statistics of actual price movement, we do 

 not find these deductions represented in all respects. 

 From a table of monthly prices covering the period from 

 February, 1898, some interesting observations may be 

 made. A glance at the table will show that in four 

 single years the cereal years (February to January) 

 1902-3, 1909-10, 1911-12, and 1913-14, the course of 

 prices from month to month followed the directions 

 indicated above. But in the other 12 years the result 

 is vitiated by a fall commencing in summer, just at the 

 time when scarcity is acute. Taking the average for the 

 16 years we get the following actual prices : 



Average monthly prices over the cereal years from 

 February 1898, to January, 1914 : 



February, 3/5|; March, 3/6|; April, 3/5; May, 3/5$; June, 

 3/6; July, 3/6$; August, 3/6$; September, 3/6; October, 3/7$; 

 November, 3/7$; December, 3/6|; January, 3/5f. 



