DAIRY PRODUCE TRADE

Dominion, Volume 23, Issue 75, 21 December 1929, Page 14

DAIRY PRODUCE TRADE

DECREASE IN ADVANCES FACTORS IN THE SITUATION A decrease of a halfpenny in the consignment advances on both butter and cheese as from December 18 is not welcome news for the farming community, the only consolation being that lower prices will be offset to some extent by greater production. The grading figures for the Dominion showed that 9.56 per cent, more butter was produced during the four months ended November "30, in comparison with the corresponding period of last year. One of the largest companies operating in the Auckland province paid out approximately £500,000 in its November cheques to suppliers, and this is believed to have been a record amount; The new rates of advance, of which advice has been received from London, are 1/3 for butter and 7id. for cheese. hour drops of a halfpenny have occurred m the butter rate since October 5, when an Increase to 1/5 was made. The rate tor cheese then was BJd, and it has come down to the present level by two drops of a halfpenny. No Improvement for Four Months. In their market report Issued on Ihursday. Joseph Nathan and Co.. Ltd., state that their London principals, Trengrouse and Nathan, indicate that an Improvement in the butter market cannot be expected "for at least four months, and between now and then a lower market Is "'■Summed up. the present position has been brought about by the continued depression in trade, which in turn restricts the purchasing power of the putolic. c °m bined with the atrocious weather recntlv experienced. This has caused an accumulation of stocks in London, buyers naturally have been drawing only hand-to-mouth supplies, relying on stored butter to help them over any shortage between steamers. Speculative interest is non-existent, and there is no confidence still continues to be heavy in other countries. Possibly some factnrinß mav be giving serious considerat?ol to the question' of holding at the London end for an Improvement in values, but in view of our Information, we would suggest that factories think twice before deciding on such a policy which, in our experience, generally Is a costly one in the end. Sometimes factories tend to overlook the fact that while holding butter in store charges and interest eat up quite a considerable sum. and to cover this, the ultimate prices returned would need to be quite a few shillings per cwt, in advance of the price they would have received, had they sold on arrival. We should not lightly forget the severe experience of a few seasons back, when there was an enormous sum owing by factories to agents for reclamations on held ' JU Qifotatlons during the week have been as under December 11, 164/- per cwt., December 13, 162/-; December 16, 162/-, December 18, 160/-. The latest quotation of 160/- peri cwt. is equal to 15.43 d. Cheese Market. “The weakness shown in earlier quotations continues,” says the report, and the same remarks covering the butter market can be applied here. Lower values are anticipated, buyers being extreme0^ Nathan anTco? during the last week are. as uncdo7o^de W-?Decemb W er 13. M/-. coloured 87/-; December 16, white, 87/-, coloured 86/-; December 18, white 89/-, . C ° lo c l i™ 86/-. The latest quotation for white show a slight Improvement, there being a premium over coloured of 3/-, due to temporary short supplies; 89/- is equal to B.lBd. and 86/- 7.87 d. MARKET VERY SLOW LATEST QUOTATIONS (Rec. December 20, 5.5 p.m.) London, December 19. Butter.—The market is very slow. Danish, 168/- to 169/-; choicest New Zealand, 160/to 162/-; Australian, 156/- to 158/- ; unsalted scarce. New Zealand, 180/- to 18-/-, Australian, 166/- to 168/-. Cheese. —The market is steady. New Zealand, coloured 88/-, white 90/-, Dalgety and Company, Limited, have received the following market advice from their head office, London, dated December 19:—Samuel Page and Son. report—Butter: Market very slow. Danish, 168/- to 172/(176/- to 180/-); New Zealand, finest salted, 156/- to 160/- (160/- to 164/-); Australian, finest unsalted, 160/- to 162/- (166/- to 170/-); Australian, finest salted, 154/- to 157/- (158/- to 162/-); Australian, g.a.q, 150/- to 152/- (154/- to 150/-). Cheese: Market quiet for Canadian; market steadier for New Zealand. New Zealand, white, 88/- to 89/- (88/- to 89/-); New Zealand, coloured, 87/- to 88/- (87/- to 88/-); spot price for Canadian, white, 94/- to 98/- (94/to 98/-); spot price for Canadian, coloured, 94/- to 98/- (94/- to 98/-). (Last week’s quotations shown in parentheses.) Mr. G. A. Mills has received the following cabled advice from his principals, A. J. Mills and Co., Ltd., London, dated December 19:—Butter: The market is quiet but steady. New Zealand, finest, 158/- to 162/-; New Zealand, first, 156/- to 158/-; Danish, 172/- to 174/-; Australian, 154/- to 156/-. Cheese: This market is steady. New Zealand, white, 89/- to 90/-; New Zealand, coloured, 87/- to 88/-; Canadian, white, 95/to 06/-; Canadian, coloured, 95/- to 96/-. GRAIN AND PRODUCE CANTERBURY OUTLOOK. By Telegraph.—Press Association. Christchurch, December 20. . The Christmas feeling has crept into the offices of the grain and produce merchants, and a wait and see policy Ims been adopted generally. Apart from this the present is what is known as the “between period.” The old crop has, for the most part, been dealt with, and the new one is hardly ready for marketing. Under these circumstances the business that is being done in grain and seeds at present is negligible. Some oat crops are now being cut. The area in this cereal is limited and although it is not expected that the yield will be heavy, it promises, in the opinion of merchants, to be sufficient for requirements. There are still old oats in stor , and these can be purchased at 3/9 for A’s and 3/8 for B’s, f.0.b., s.l. A few merchants have attempted to do some forward buying, but with crop prospects so uncertain the overtures are not resulting in business. The chaff market has eased a little. Sales had been made to the North Island at up to £5/17/6 a ton, on trucks, and at that price the few holders of unthreshed oats preferred to chaff rather than to thresh; but by yesterday the price of chaff had dropped by 7/6 aton, to-day's quotation being up to £5/7/6 on trucks. The wheat crop will be lighter this year, but it is estimated that it will be sufficient. The carry-over from this year is put down at about 1,500,000 bushels. Fowl wheat is in moderate demand at 6/- to 0/1, f.0.b., s.i. Bran is quoted at £6/10/- a ton and pollard at £B, with a 10/- Increase for small sizes. The potato crops are looking well. A much larger area is considered to have been planted this season, The .price recently offering (£3/15/- a ton on trucks) is scarcely being maintained by merchants. NATIONAL MUTUAL LIFE SUCCESSFUL YEAR The head office in Melbourne of the National Mutual Life Association of Australasia, Limited, has cabled Mr. VV. A. Martin, manager for New Zealand, regarding the results of the association’s financial year which ended on September 30. The following particulars are taken from the directors’ report: The new business for the year was £9,868.350. The total income for the year was £4,941,130. The sum of £2,400,265 was added to' the Assurance Fund, which amounted to £31,547,595 at the close of the year. The amount payable to policy-holders or their representatives during the year was £2,093,781. The rate of interest earned on the mean funds was £5/6/- after deduction of rates and taxes. The total assurances in force now amount to £81,262,284. Members may expect to receive their bonus certificates on March 1, 1930.