STRONG BUTTER MARKET

Evening Post, Volume 55, Issue 55, 3 September 1923, Page 7

STRONG BUTTER MARKET

HIGH PRICES AND CONSUMP-

TION.

(UNITED TRESS ASSOCIATION.—COPtMOBT.)

(AUSTRALIAN - NEW ZBALAND CABII ASSOCIATION.)

(Received 3rd September, 9 a.m.)

. , ■■ LONDON, Ist September. The butter position appears to be strong, and there is a'decidedly "bullish" feeling iv the market. As is usual .at this time of the year, supplies from all sources are diminishing, and for the. Inext two' months the quantity arriving will be small, consequently retailers are buying freely to fill their requirements during the lean time, and a further increase in the wholesale prices is not improbable. Much, of course, depends on what effect the higher prices will have on consumption. Already the retail figures have been raised to Is lOd per Ib, and even this' price leaves but little profit for the retailer. ' If, as seems likely, the retail price will be raised later to 2s, there may be reduced consumption,'but the middle-class public have returned to the butter habit, and though the poorer working classes may be compelled to revert to margarine, the very best quality of which is selling at Is per Ib, the consumption of butter is expected still to be sufficient to absorb the limited quantities which, will arrive until November. It is interesting to note that Danish and New ..-Zealand butter are "now fetching practically the same price, Danish being 190g to 192s per cwt; New Zealand 188s to 190s per cwt. The recent dock strike proved a blessing in disguise- to the cheese market, for it caused such a shortage that from the moment the delayed ships commenced to discharge buyers have been actively competing, and, contrary to ' general expectation a fortnight ago, prices have advanced by nearly 10s per cwt during the past week. The strength of the market is greatly as-sisted-by the United States purchasing laree quantities of Canadian cheese, probably as a speculation, for jt .Is said that some of the American cheese purchased may ultimately be shipped here. It is unfortunate that there is no Australian cheese on the market to benefit from the enhanced values.