UNEXPECTED DROP IN BUTTER PRICE

Dominion, Volume 29, Issue 299, 14 September 1936, Page 9

UNEXPECTED DROP IN BUTTER PRICE

Tooley Street’s Gloomy View SPANISH WAR AFFECTS LONDON MARKETS By Telegraph—Press Assn.—Copyrigbi (Received September 13, 7 p.m.) London, September 12. The Spanish civil war is creating serious difficulties for British importers and merchants. Shipments of Spanish grapes are indefinitely held up, and <t is uncertain whether the usual November supplies of Seville oranges will arrive as fighting and lack of attention to the tryes have damaged the crop. • It is also feared that the Christmas trade in dried fruits wifi be seriously hit, consequently Australian • varieties are in increasingly good demand. The position of firms operating coppx” and iron pyrites mines in Spain is serious. All the British concessions are in areas occupied by the insurgents, who insist on receiving full value in foreign currency for cargoes exported, while the British Government requires that the value again be paid on arrival in Britain. The proceeds are entered into the Anglo-Spanish trading account. Insofar as it has increased the difficulties of ,the French Government, resulting in a renewed attack on the franc, the Spanish situation has been a depressing influence on the stock markets, which passed a lifeless week The outbursts at the Nuremberg conference havq caused general uneasiness, and in view of this combination of influences it is not surprising that the advance in industrials has been halted, ,011 s aud gold shares are quiet. There’ has been an unexpected collapse of butter. • and Tooley Street gloomily inclines to the lielief that the market has not yet touched bottom. Operators are nervous, especially as thev recall that prices went to pieces in October, 1935. One of the few props to the market has been the prospect of American Inquiry owing to the drought affecting production there, but so far onlv a few odd shipments have materialised. Continental varieties are also depressed, though Danish has been pegged during the last few weeks. Some dealers are hopeful of a slight improvement when buyers regain confidence, but none go so far as to predict recovery to any marked extent. Cheese is affected by the weakness of butter, but the position is statistically sound. »

Woolbuyers find difficulty in assessI ing the course of values at London sales. They are impressed by the small quantities offering, which emphasises that stocks are very much lower than thev have been at this time of year for a long time. The extent of the Continental demand is uncertain. Some feel that the recent movements of the franc will make France an important influence. Italy will possibly operate. Responsible traders anticipate that the sales will not open at a lower level than the values now ruUng in Australia. ,