BRIGHTER OUTLOOK

Dominion, Volume 28, Issue 283, 27 August 1935, Page 12

BRIGHTER OUTLOOK

Butter and Cheese Markets

The prospects for the coining season look considerably brighter than for some time, remark Joseph Nathan and Co., Ltd iu a review of the butter and cheese markets. “It is difficult, however, to forecast what the coming season. Wbl bring forth. A substantial rise in the price of primary products is well overdue but the chief disability in this respect would appear to be the continual changes of the political aspect in Europe. There is no doubt that the upheavals which have occurred from time to time in various parts of the world have had a depressing effect on trade in primary products. “However, with the stocks ol both bu.ter and cheese being considerably lower than at this time last year, the prospects would appear to be for a continuance of the upward tendency which had been apparent in both markets during the last few weeks” , , , , * In a survey ot the butter market. Joseph Nathan and Co. state that it must be admitted that the lot of the primary producer has been a very trying one. While it is generally believed the world is slowly recovering from the depths of Ihe recent depression such recovery has not to any great extent, been reflected in the, returns for our primary produce. “At the commencement of last season prices were in the seventies, but up to the middle of October they had slipped back into the sixties, and recovery from that low point was very slow indeed. In the meantime, a great deal of the season’s output had been disposed of. . . . “With the cessation of America’s support the market receded from the nineties in February back to the seventies, but a more healthy tone, has made its appearance, and since April, when quoted at 76/- per cwt., it is now 94/- to 95/-, which is over 20/- per cwt, higher than at this time last year. The present high prices, however, will have little effect on the old season’s returns, as the bulk of that season's production has already been sold, and the guantities available for sale at these prices are very small .as is natural at this period of the year. Nevertheless, a continuance of present prices for a few months would do much to lift the average returns for the present season well above that of the preceding one. “As last season’s returns are not yet complete, the actual average is not ascertainable, but estimating the unsold produce at present market rates an average of 80/- per cwt. for the season would appear to be somewhere near the mark. This is practically the same return as the 1933-34 season, but on account of the lower quantity produced the actual return to the producer will be less than last season. “During the season much discussion of the restriction on f.o.b. selling was manifest. and all sorts of arguments for and against gained prominence. It is interesting to note, however, that for the season the amount of butter sold f.o.b. was 18 per cent, and cheese 18 per cent, also, against 15 per cent, and .7 per cent, respectively for the preceding season. "Producers of cheese last season fared even worse than those of butter. Prices generally were remarkably steady throughout the greater portion of the season, but unfortunately at low levels. It is onlv during the last week that any interest has been taken in the cheese market, and prices are showing a welcome advance with an upward tendency. During the season much cheese was held for higher prices, and it was reported at one time that over 90,000 crates were so held. In view of this holding shipments from New Zealand were retarded and no doubt this action is now having an effect on prices. "The chief bugbear of the market, however, would appear to be the large quantities of cheap English cheese which has been Hooding the market for many months. Times are bard and with cheat) English cheese selling retail at 2}d. and 3d. per lb. against 6d. for New Zealand, the effect on prices can well be imagined. “Owing to th< re still being a fair amount of cheese to be shipped and sold it is difficult to estimate the season’s average. It is expected, however, not to be morn than 45/- to 46/- per cwt., which would be about 3/- to 4/- per cwt. below that of last season. This expected lower return, coupled with the decrease of some 11.000 tons for the season, places the cheese suppliers in an even worse position than butter.” ’ AUCTION DIARY TO-DAY. Ashliurst heifer fair, 12 noon (Dalgcty). Fordell spring burse fair, 1 p.m. (Lean and Mere.). Levin sale. 11.30 a.m. (Abraham ami Williams). Oddfellows’ Hall, Pelone, 10..10 a.m., sale i-outeuls Hotel ' (Johnston). Dixon St., 1.30 p.m—Furnishings (C. W. Price). 123 Ghuznee St.. 10.30 a.m.—House Furnishings (Johnston). 24 Molesworrh St., 2 p.m.—Maori Artifacts (McKenna). TO-MORROW. Johnson rille fat stock sale, 1 p m. ( Wright Stephenson) Martinborougli. 2 p.m.- Cambridge property (Wright Stephenson). Rangitikel St., I’aliu. Ntli., 2.15 p.m.—Residence and Training Stables (Mounsey).