DAIRY MARKETS

Evening Post, Volume CXVI, Issue 87, 10 October 1933, Page 10

DAIRY MARKETS

BUTTER PRICE TOO HIGH

A. H. Turnbull and Co. report that during the first three weeks of September the London butter market remained steadily firm, and values rose from 92a 6d per cvvt on September 1 to'llos for finest on September 20. This price proved to be the peak for the moment, as a sudden weakness occurred, and prices have since fallen to 102s, with the possibility of a further decline. Consequently very little trading is being done except for immediate requirements. W. Weddel and C 0.,, Ltd., cabling on October 5, slated that the reaction in -the butter position was due to the fact that prices had been forced too high without any general buying taking place. Another factor had been tlje" sudden increase in shipments and [grading? from Australia. Buyers were acting very cautiously, expecting lower prices. The future of the market depends upon production for the next few months both in New Zealand and Australia. During September, forward buyers continued to show a considerable amount of activity, particularly for butter that would arrive in Great Britain not later than early "November, and up to ll%d f.o.b. was paid for some of these early shipments. Generally speaking, not much interest was shown in later arrivals, although fair quantities changed' hands at ll J/4d f.o.b. for late October shipment. Today butter is being offered on the basis of lid f.o.b. for October shipment, but buyers are showing no interest whatsoever. The cheese market to a great extent followed the rise and fall of butter, and reached the peak with butter about September 22. The market, however, has weakened, and quotations for New Zealand are down to the basis of 50s for white and coloured, with a stagnant market. W. Weddel and Co., Ltd., in later cables report that the statistical position of cheese is sound, that the home make of cheese is much below normal, and they are therefore of the opinion th»t prices should improve. However, if butter continues to decline, it is bound to have a depressing effect upon the cheese market aI Arrivals of New Zealand butter in London during October and November wiU be 19,280 tons, compared with 14,308 tons for same months last year, and 10,885 tons for October arid November, 19. U.