BUYERS WITHDRAW

Evening Post, Volume CII, Issue 36, 11 August 1921, Page 8

BUYERS WITHDRAW

CHEESE PRICES IN THE AIR

EFFECTS OF* BREAK IN. THE

DROUQHT.

Thene was considerable speculation, with some tinge of anxiety, on the part of .butter and, cheese producers to-day at the withdrawal of offers made to buy cheese by the representatives of British importing and distributing houses. Cables received from their principals yesterday conveying the instructions to withdraw also stated that the New Zealand cheese'market in London had fallen to.an average of 130s per cwt, whereas a week ago the price ranged from 136s to 140s. On this and other events all limits were withdrawn. In the meantime offers of outputs of butter and cheese are not being taken, although only a couple of days ago they were being eagerly competed for at meetings of factory directors. _ '. Canadian cheese prices are cabled as having dropped 10s' to 15s per cent, during the past few days. Buyers have been ■ advised also that not only has the drought all over the Northern Hemisphere broken; bnt large shipments of cheese have arrived one on top of the other from both New Zealand and Canada. Buyers at the other end, in these circumstances, are showing: no eagerness to buy "spot" or forward. The market has suddenly assumed a lower tendency. FORMER ACTIVE BUYING. ' As already stated .in The Post, buying of cheese has been active up to as high, as ll^d per pound.; but where factories were disposed to sell at all, instead of the general North Island practice of consigning, gome of them held the cheese to be worth llfd to Is, and said so with emphasis. However, the price at which actual business up to now has been d«<ne is from ll£d to lljd'—in one case llfd, an exceptional price. These prices would be for the whole of the season's output of particular factories: One London cablegram (shown to ThePost) to local (representatives readl, inter ■alia : "We think prices have gone far enough, in fact, too high. We.ar© afraid to buy. at 'these prices for the whole; season.", .!■,:■! On the other hand, as a large number Sot factories in both) North'and South Island are keen sellers, it is hoped that the present state of things is but a passing phase in the cheeso market. Buyers may then be operating again, and that presently. Butter Buyers have also retired for the time' being. They wiire hot eager to buy for shipment beyond September, in any case, but they had bought at Is'.lljd'up'to 2s Id. A rough average up to now for early shipment would be Bs. '' ■. ' ■ . , I ■ ... NO BUTTER SUBSIDY; It is believed that as the outcome of * the meeting of butter suppliers to the New Zealand market yesterday, they will operate on the basis, of-a parity of: export value. That is to say, if the" butter is,worth 2s to export, that, will be the local price, plus profits of merchant and refedler and costs of distri-; foutktti. ". In any case, as suggested by The Post a couple of days ago, the Government subsidy of 2d per pound to factories supplying the local' market will, be discontinued. .BntteT wilWbe "free," as the producers have insisted it ought to be. The total cost of the butter sub-, sidies to the country is not ascertainable, but it is believed to be well overl £1,000,000 already. It expires on the 31st of this month. The local price of butter after that date is problematical, but all. will-depend upon what-it is worth. itoexpbrt. It will be noticed that the tallow market has sharply advanced to-day, 1 consequent on ' the demand of margarine . makers r for the finer sorts. The high price of butter, combined with the distress at Home, has given a greater impetus than ever to margarine consumption. Latest mail advices show standard j brands retailing at 8d to lOd' per Ib, and Is for superior lines of mar-] garine. i -