'BULLS' AND 'BEARS'

Evening Post, Volume CII, Issue 38, 13 August 1921, Page 6

'BULLS' AND 'BEARS'

BUTTER AND CHEESE MARKETS

A LONDON MERCHANT'S VIEW,

Mr. Maurice J. Nathan, one of the managing directors of Joseph 1 Nathan and Co., Lt&, in London, is at present in Wellington.' He has been intimately connected 1 with the provision trade for the past thirty years, and, for all that, he takes no pessimistic 1 view of the' preBent withdrawal of buyers of New Zealand outputs. Crystallising his opinions on the subject, Messrs. Joseph Nathan have advised all their dairy produce friwids'that "the right way to view this position is that sometimes tho 'bulls' are at work, and sometimes tho 'bears' are at work in the market, just according to how tile general tradang conditions wx> working," The London dairy produce trade is not confined to produce of New Zealand, Th« trading there applies to all dairy produce received from oth«r partis of the World as well as New Zealand. ■ ,

Mr, M, J, Nathan has, in bia addresses to meet of the factories, pointed oat that the butter and cheese market is largely ruled by sentiment. Consequently advantage us taken of the slightest indication by the "bull*" or | "bears" to try and influence the market in whiahiaver way they wish it to go. I While beneficial rains have fallen, there are no reports that they are gen* eral, "but advantage is taken of this fact," Messrs, Nathan's daEy advice* from London are; to the effect that, although "there is an easier tone, our advices show that the market remains fairly steady, but quiet,, without./any big- fall, suoh fts newspaper .reports would indicate, and our peoplel at Home still take an optimistic view !'about the returns that will be received for New, Zealand butter and cheese. -The recent buying of cheese has no 'doubt been for speciall orders, and not in any way speculative, so that, when, these orders are filled', houses who do occasionally speculate! in cheese, would no doubt withdraw, fettling that the rates are too high. This in itself ■ would' have am easier effect upon the market, and ia quite a manoeuvre that is frequent in connection with trad© of this description." The firm does not think that buying orders in New Zealand even at Hid for cheese were numerous, and that ther© were still 1 fewer for butter at any pricfc, and it adidfe :. "We see no rea-. son why there should be a pessimistic! tone imported into butter and cheese prospects to-day, because, not only does this statistical position point to reason,; able returns, but also the prices are 1 today on a range of values which do not look to be at all dangerous." A decidedly optimistic note is struck with reference to butter and: statistica i?iv«n to show that supplies from ftance, Scandinavia, and Siberia are practically nil 1; from Denmark about half that of pTe-war times. France is a buyer of butter; and England will have to look to Australia, New Zealand, and Argentine for about 80,000 tons. There is always a market for butter in England, ho matter what the price or how keen margarine competition may "be. The Uirited States k also a buyer of butter, 1 Oheeee Is being consumed ia larger quantities than ever before, notwithstanding the relatively lessened produotion. Concluding, Mr. Nathan writes £-.. , ' -■ ; ; '■•

"We see no reason to alter the opinion we have expressed many a time in meetings with factories, that ther« is no cause to be anything but optimistic, feeling that' the facton«B will be satisfied with reasonable prices for their produce somewhat on a parity with what are to-day's market values, #8 indicated! by this tradte m theh-Tecent buying." ,'