MARKET REVIEWED

Evening Post, Volume CXXI, Issue 36, 12 February 1936, Page 3

MARKET REVIEWED

DANISH FOR GERMANY

Reviewing the London butter market for January, A. H. Turnbull and Co. remark that it continued to decline chiefly owing to the report of increased production in New Zealand, and increased production and shipments from Australia. However, towards the end of the month and during the first two weeks of February, very much greater quantities of Danish butter have been shipped to Germany. This has enabled the Danes to lift their price to 1255, which has had a firming effect on New Zealand prices. However, in spite of the fact that Germany is taking greater quantities of Danish butter, the estimate of stocks of butter in the United Kingdom shows an increase. The following comparison showing the stocks on January 14 and February 11 for the past two years is of interest: — 1935. 1936. January 14 .... 12,700 8,775 February 11 9,675 11,162 Less 3.025 Plus 2,387 From this it will be seen that whereas last year stocks for the month declined by 3000 tons, this year they have increased by nearly 2400 tons. Messrs. W. Weddel and Co., Ltd., cable, however, that notwithstanding the increased stocks and the heavier shipments from Australia, they do not anticipate any great alteration in the prices for colonial butters in the meantime. Buyers have not been very active in the forward market, but a fairly steady business has been done at 11 l-8d per lb for February shipment, and a few sales, chiefly for outside countries and ports, have been made at lljd. Buyers, however, are not following the rise in spot prices to any extent, and seem to prefer earliest possible shipment. They are apparently not anticipating any great improvement in prices in the meantime. The cheese market weakened during the month, lowest quotations being down to 52s for white and 56s for coloured during the week ended January 21. Since then a steady improvement has been shown. Estimated arrivals of New Zealand cheese for the next three months will be nearly 5000 tons short of last year's totals. W. Weddel and Co., Ltd., advise that unfavourable weather has seriously affected consumption of cheese, but they anticipate a steady market. Not much activity has been shown on the part of forward buyerc of cheese, although a few buyers were in the market at s?d per lb for early shipments.