A BEAR IN BUTTER.

Dominion, Volume 1, Issue 158, 28 March 1908, Page 3

A BEAR IN BUTTER.

RUMOUR. ;

■ VAN EARLY. FALL'IN PRICES. ' It is seriously rumoured in Wellingtonthat there is .a movement afoot to bear ,the. butter market, and that in pursuance ,of the scheme a fall of price, will take place in, the first week in April. A bear will :be a, charming novelty, for New' Zealand;; .. .. ; The bearSjVit: is, alleged, havo two objects in, vioiyv First,:to. frighten the outside factories from entering the local markets when their British; contracts expire at the end.of this month, arid secondly, to secure the out-' puts at a low .'figure. If tho scheme should succecd, and satisfactory contracts be made controlling-;the 'winter supplies,'; it :is alleged ; that the price, will bo again raised.', It is; considered essential to the ' scheme, that the fall in, price will be rather decisive; and that; in tho meantime as much butter as possible:, will -be .stored in order to; give the ■ drop a semblance of . genuineness. ■ It is hard to', estimate the quantity stored until the official; returns for the : month ''come in, but one estimate puts the quantity as high as 35,000; boxes. Tne quantity ,at the end of February was only' a' little 'over 21,000 boxes. . It is considered almost certain that factories will' not export after the expiration of their con- 1 tracts- if the-present, wide; gap between local andi Home prices, continues, and city merchants are said to be particularly anxious ; to avert noiv : competition just now. The success of a.-boar,;.however; .floes, not; seem to .be '/very ■..much -. pre-assured so:' far, as it ;may' aim; at cornering' supplies for a? future, rise, arid , probably this part of the rumour, need riot be taken very seriously.; .It could only succeed ■if large supplies could' be. diverted to the British market—a con- ; tingeiicy which is by no hieans likely. The; London price to-day is only equal'.to about | lid: per pound net, and it will bo. hard to persuade local factory directors th.it the loc.il price is going to be less than; that. ■ During the .last two years-the qifftntities of butter, exported in the six months of April-September, which represented the ■ surplus after • supply-. ing ithe ;local''needs', were, in .round fijgdres; ,'86,000-boxes'.in; 1906,■.'arid 1 -139;000..b0xes 'iin" .1907.'',- If there should bo anything like 35,060; boxes';in store at v the"\end! pf March, .it.will! only need another 50,000 boxes to be pro-' duced during ;the next six months to fill all the :needs ! ,;pf the' Dominion'. V Since .-.the .'end of February.33,ooo .boxes .of. butter have been p.exported..over, tlio quantity, reserved for" the, -local; needsif.krid .if' all. future;, outputs; come ■ upoii .the'; local markets there:is: every justiJ fic'atiori ; for'belief that,the, local markets will: be well supplied. • ' "iv ■ On'the'whole; there seems-to;be no need of a bear; to warrant an immediate; drop. : \<