TRADE REVIEW

Ashburton Guardian, Volume 55, Issue 298, 30 September 1935, Page 5

TRADE REVIEW

BUTTER MARKET IMPROVES. LOWER SUPPLIES RECEIVED. (United Press Association—Copyright) (Received This Day, 8.5 a.m.) LONDON. Sept. 28. The third week of September was an anxious one for the Stock Exchange. All markets were sensitive, ana reacted quickly to various newspaper rumours. The gilt-edged market was especially nervous, and prices fell to the lowest level this year. Industries also generally declined. This week confidence returned, the markets taking less notice of unfavourable aspects of the international situation. Prices generally recovered sharply, although there was a slight decline yesterday, chiefly due to slackness in business. Old consols, which fell last week to eighty-one, rose to nearly eighty-three, conversion 3£ recovered two points, and funding loan 2J. Industrials also improved, though rubber shares dropped slightly yesterday when the Dunlop Rubber Company announced that it was not paying an interim dividend, the directors stating that the volume of business had been duly maintained, but the rise in raw materials, coupled with the lag in the adjustment of selling prices and unsettled conditions abroad had to some extent adversely affected the profits According to the “Economist’s” trade supplement, business in Britain has been marking time in recent weeks. The improvement in the first half of the year has so far' been well maintained. There are no signs of a setback in the near future. In fact, strong and seasonal upward movement is expected in activity in most industries during the next few months, provided there are no untoward international developments. The butter markets continues to improve. Prices have reached the highest level since 1931. This is largely due to the strength of the statistical position, for not only are the quantities afloat from Australia and New Zealand, —110,000 boxes, — less than at this time in 1934, but the gradings both in Australia and New Zealand have been considerably lower. Our supplies from Denmark will soon be considerably reduced, for Germany has just increased l her imports of Danish butter by 4000 casks weekly, and Argentine shipments are not yet coming owing to unfavourable weather. It is estimated that arrivals of butter of all kinds during the next two months will not exceed 7000 tons a week. Our consumption is ever 9000 tons, so we may expect a further reduction in coldstored stocks, which had fallen on September 14 to 21,774 tons, a decrease of 7708 compared with a month earlier, and 21,359 compared with a year ago. In this state of affairs traders have decidedly “bullish” ideas about the future. Russia is again taking an important position in the butter trade. Last year our imports of Russian were lower at 25,421 tons, compared with 32,061 in the previous year, not on account of increased production, but because larger supplies were required for home consumption. Weddel Company’s annual report says that the improvement effected in the quality and packing of Russian butter in recent years is most striking, as hygiene methods now govern manufacture at all stages. Grading is strictly enforced and carefully checked in London, with the result that Russian butter has gained enormous popularity among butter buyers, who are now enabled to purchase with confidence on brand alone.

Australian canned 1 fruits—peaches, pears and apricots—'have been selling well. Sales for the season exceeded 1,000,000 cases, and wholesale traders would like more.