MAY REACH 120/.

Auckland Star, Volume LXVI, Issue 216, 12 September 1935, Page 8

MAY REACH 120/.

PRICE OF BUTTER.

LONDON OPINION.

MARKET QUIETER TO-DAT.

The price for New Zealand.butter may reach 120/. This level, or at least a level which is definitely higher than the normal of tho past few years, may be expected to be maintained until about the middle of October, when , a gradual fall is likely to take place. There is every indication that the average butter and cheese juices will be better tills season than last.

This is the text ot a came received by Messrs. Joseph Nathan and Co., Limited, from their London principals, Messrs, Trengrouse and Nathan, Ltd. In view of the startling rise in values in the past few days tho Auckland Jinn sent for their principal's views as to present and future prospects. The cable added that the price was due to a genuine shortage of stocks. On the day <>n which the cable was sent, Monday, prices were 112/ for butter and 54/ for cheese. The latter product might be expected to advance in sympathy with butter. It was also expected that the high price for butler would affect consumption, but not for a few weeks, during which time the high level would continue.

Stocks of New Zpahind butter in London on September (! were '4308 tons, compared with 11,118 tons a year ago.

Going back over past quotations, it would appear that the present rise began at the beginning of April, when the market was 77/ per cwt. From then on each week has shown a small but perceptible increase until the first week in July, when 90/ was recorded. Fro'n that date the market gathered increasing momentum, and at the beginning of September the 100/ mark was reached. At that point the market jumped tip daily, and whereas on Friday last it closed at 107/ per cwt, it opened on Monday at 112/ per cwt.

To-day there is a suggestion of rasing, a« Messrs. Joseph Nathan received a cable this morning stating that the market is quieter after the advance, and some resellers are prepared to accept 1/ to 2/ less.

September arrivals in London will be about 11.2(17 tons.

After being practically stationary for many months the cheese market, too, is showing signs of sharing in the general rise, though, as in the case of butter, a slight reaction is reported in to-day's cables. with quotation* at 53/0. Stocks in London on September f> were approximately 710(1 tone, against 1(1.0(1(1 tons ii year ago, and are the lowest since January, 1f). , !. , ). Arrivals during September will be approximately 5400 tons.