THE BUTTER MARKET.

Hawera Star, Volume XLVIII, 23 December 1924, Page 7

THE BUTTER MARKET.

“POSITION A: RIDDLE.” . \ AUCKLAND, Dec. 18. A peculiar position appears to obtain in the butter market, inasmuch, as the price of butter has been reduced by one large distributor locally in face of a report that the London market was stronger and that London buyers were making offers for .butter as far forward as February at prices showing a decided increase over to-day’s parity. “I was astounded,” said Mr. W. Goodfellow, managing director of the New Zealand Co-operative Dairy Co., Hamilton, “to read a report that London buyers were operating at such prices, because there was nothing in the world’s position to justify such action. I therefore immediately dispatched a cablegram to Mr. J. B. Wright, our London manager, repeating the press report and asking for information, as his regular week-end cable, which, arrived the same morning, had merely indicated that New Zealand spot stocks were lightened and that he anticipated good prices until the middle of January, when extra arrivals from the Southern Hemisphere would be likely to reduce prices. Owing to cable delays his reply has not yet come to hand. A curious fact about the whole thing is that the represents* tives of London buying houses in New Zealand themselves seem to have no knowledge of these magnificent offers alleged to have been received by certain companies. I have made full inquiries among the representatives of the best English firms, and am informed by them that in their opinion there is no foundation for the statements that have been made. One of the best-informed houses on produce statistics published in Wellington •on the very day that these extraordinary offers were announced as being received in Auckland, the followings report : ‘All indications are for a general weakening of butter prices from now onwards. Arrivals of New Zealand butter during December and January will show an increase on last season’s arrivals, hut we are of opinion that heavy shipments from Australia will have a greater influence in weakening the market. Forward buyers of butter show practically no interest even in shipments now leaving New Zealand, while it is impossible to get buyers to bid for December make or anything further.’”

Against Mr. Goodfellow’s contentions, however, comes confirmation of high, prices. Mr. H. C. Aickin, of the firm of C. Aickin and Sons, stated that the offers mentioned in the report were received by the Opotiki Dairy Association. Offers of Is sfd for butter afloat, said Mr. Aickin, were practically 2d per lb. less than the present London prices, so that the market might weaken to quite a considerable extent and still be equal to the price offered for butter afloat. The whole position of the butter market was a riddle this .year, he added. Danish butter, for instance, was quoted at 2405, and New Zealand at 2065, the . reason being that Germany, which had been dormant last year, had now entered the market and had been buying Danish butter for many months past. It was more than probable that with a reduction of, say, 20s per cwt. on to-day’s figures, Germany would be a far more active buyer than she was at the present time. Though the production of the Southern Hemisphere would be very much greater this year than the year before, the fact that Germany was in the market was likely fo have a more beneficial effect

The offers reported, he said, were actually offers received by the Opotiki Dairy Association, namely Is sfd for butter affoat and Is 6fd'for February shipments. No word had’yet been received as to, whether these offers had been accepted, and it was unlikely that the former quotation would he, in view of the better possibilities in view. He had, however, made inquiries similar to those made by Mr. Goodfellow, and had. traced another offer received by a Wellington factory fo r Is s|d for the December make of butter.—Dominion Correspondent.