BUTTER MARKET

Gisborne Times, Volume LXXXIV, Issue 12870, 25 May 1936, Page 5

BUTTER MARKET

SUSTAINED ACTIVITY AT HOME. STRONG FORWARD POSITION. COLD SPRING !N EUROPE. HI.P A. hv Elec. Teh Copy right (Received 'May 24, C> p.m.) LONDON, May 23. Better news for Australia and New Zealand is the sustained activity as to butter, the most favourable feature of which is the strong forward position.

The rapid decline of Australian and New Zealand gindirigs is the principal reason for the “bullishness”.

Another factor is the backward production throughout. Europe on account of the cold spring.

I Most buyers have boon running light stocks and the rise in prices resulted in a scramble for supplies, which were inadequate to meet the demand.

Some Toolev Street dealers, however, are wondering whether the appreciation was not too steep and sudden. If tho retail price of Empire butter rises abovo a shilling per pound consumption is likely to suffer. The cold store stacks are beginning to increase. For May, June and July the total arrivals are likely to exceed consumption hv approximately 1000

tons a week. It is doubtful whether the trade can absorb the surplus, except at a price yielding a good margin of profit if retailed at a shilling. Cheese continues firm, though overshadowed . by. blitter. A further appreciation is expected in the near future. Canadian production is backward and little is offering.