LONDON MARKETS

Evening Post, Volume CXXI, Issue 16, 20 January 1936, Page 12

LONDON MARKETS

ENCOURAGING FEATURES

PROSPECTS FOR BUTTER

{By Telegraph.—Press Assn.—Copyright.) LONDON, January 18. The strong opening of the London iwool sales confirmed expectations. An encouraging feature was that the demand was unlimited, but that there was general widespread competition. The demand for crossbreds is significant and indicates that some of the finer 'grades were purchased to provide a certain amount of substitution for merinos. Topmakers are finding difficulty in passing on the advances, spinners and manufacturers declaring ■that the consumers will not stand the rise They point out that last year s tremendous wool consumption was built up on a considerably lower price Butter declined so sharply that it almost amounted to panic selling. Tooley Street merchants are unable to account for the rapid fluctuations, tut hazard the theory that values became established on a higher level than to which the market had been accustomed lor some years, consequently buyers had insufficient confidence, fearing a break. Supply and demand, however, seem balanced. If the. buyers take supplies regularly there .is no • reason why the present prices should not be fully maintained. The statistical position is excellent. Cold store stocks were reduced 43,000 boxes.in December. Imports during the next three months will be light. Larger quantities of South African are arriving and are taking a firm place on the market. , ,"■ Cheese'stocks are healthy and are considerably below last year. The idemand seems to be about equal to the ■^available supplies, but prices are tending lower.'