RISE IN BUTTER.

Auckland Star, Volume LXVII, Issue 140, 15 June 1936, Page 4

RISE IN BUTTER.

EXCELLENT PROSPECTS. RETAIL PRICE CUTTING. ! PUBLIC SPENDING POWER. I I In response to an inquiry as to ill' i possible market prices for July am | August, the Dairy Board's London olßc ' lias advised as follows: —- | "Owing to keen competition betweei multiple shops, retail prices so far liavi not advanced in relation to importers prices. Germany is buying freely, par ticularly from Denmark. Russian suppliei are still much below the average of recen years. Small consignments of Canadiai butter have arrived. Estimates of Gunu dian imports for the season vary i'ron 5000 to 7000 tons. "If retail prices are advanced in syin •pathy with importers' prices some checL on consumption would be likely, lnr butter now in sight for June-October i: hardly sufficient at the present consump ' tiou level. The general trend, therefore points to a continued active demand, par ticularly as Tooley Street merchants an short of butter. This is dependent upoi consumption being maintained at a higliei retail price. The public spending power ii certainly _ increasing. Uncertain factors are Russian imports, the continuance ol heavier German buying and the effect ol higher retail prices if the multiple stores advance to a normal profit margin." Estimated Arrivals. In their monthly circular dated June Messi-s. A. H. Turnbull and Company representing Messrs. W. Weddel and Com pany, London, quote estimated arrivals in the United Kingdom during June, Jul.v and August, compared with actual arrivals in previous seasons, as follow: — .NEW ZEALAND BUTTER (in tons). 1034 1033. 1930. June 8,503 8,0-14 8,010 July 0,702 8,354 10,500 August 0,800 0,748 0,000 Totals ..25,155 20,140 25.410 NEW ZEALAND CHEESE (in tons). June 0,455 C.470 7,000 July 8,402 0,570 5,400 August .... 7,124 5,223 5,040 Totals . . 25,101 15,272 10,000 The report continues: The butter market has made one of the most satisfactory advances Experienced for a considerable time, rising from 38/ at the beginning of May to the present level of 112/ per ewt. Messrs. W. Weddel and Company, Limited, cable us that the advance has been caused by the late spring experienced on the Continent of Europe, which has brought about a reduction in stocks in the United Kingdom. Added to this, the rapid falling away of Australian production has also strengthened th'e position. Perhaps the strongest factor, however, has been that the retail price of New Zealand butter has been kept at from lid to 1/ throughout the month, and this has maintained consumption at a very high level. With butter now quoted at 112/, ex the market, it seems as though retail prices will have to be advanced, and it will be interesting to see whether this will have any effect on the present excellent consumption. Latest quotations give the market quiet at 112/, but our principals advise that they anticipate a firm market. Stock Position Sound. The stock position in London is very sound, as, according to the latest figures supplied by the Imperial Economic Committee, the estimated total stocks were 16,000 tons, as against 23,000 tons at the same time last year. Forward buyers have been showing very great activity during the month, with a strong demand for June/July/August shipment, and as high as 1/2 per lb f.o.b. has been paid. Cheese Prospects Bright. The cheese market has advanced rapidly, very much on the same lines as butter, and prospects for the future certainly look bright. Messrs. W. Weddel and Company, Limited, state that the stocks in the United Kingdom and also the English production of cheese continues to be below normal and they therefore expect the market tot remain firm. Forward buyers of cheese have been very taetiye, buying cheese unshipped to the end of season's make and as high as 6%d has been paid. Just at the moment the market is reported quiet at round about 60/ per cwt. , Board's Weekly Report. The New Zealand Dairy Board has received the following market report from its London office, dated June 12: — NEW ZEALAND BUTTER. 12/0/30. Last week. Last year. Salted .. . 111/-112/* 105/-107/ 80/ ♦Equals 13.22U per lb f.o.b. Unsalted . 112/-114/ 106/-10S/ 83/-SO/ Tons. Tons. Tons. Deliveries 1..652 1,438 1,157 In store 4,800 4,300 0,088 Butter.—Australian, salted, 110/ to 111/ per cwt; unsalted, 111/ to 112/. Deliveries:' Australian, 1328 tons; in store, 4877 tons. Irish creamery, salted, 114/ per cwt; unsalted, 110/; Danish, 97/ f.0.b., 118/ spot; Dutch, salted, 100/; unsalted, 108/; Polish, salted. 102/: unsalted, 103/; Lithuanian, salted, 107/. Market quiet at the advance. " New Zealand retail prices, 1/ to 1/1 per lb; Danish, 1/1 to 1/2. NEW ZEALAND CHEESE. 12/0/3 G. Last week. Last year. White ... 61/-Gl/0* 58/0-50/0 44/ •Equals 0.85 d per lb f.o.b. Coloured . 01/-Gl/0 58/-50/ 44/ J Crates. Crates. Crates. Deliveries 18,035 17,042 15,131 In store 07,307 104,147 105,100 Cheese.—Market quiet. New Zealand retail price, 7d per lb. Canadian, white and coloured, 64/ to 08/ per cwt. c.i.f., 32/6. Deliveries, Canadian, 8527 boxes; in store, 45,401 boxes. Market firm. English factory cheese, 56/ to 60/ per cwt. Steady. Imperial Economic Committee's estimated stocks of all butters in store, 714,097 boxes (last year 993,133 boxes).