BUTTER REACHES 102s

Hawera Star, Volume LIV, 4 September 1935, Page 6

BUTTER REACHES 102s

London Market Reported Firm at Advanced Rate RISE OF 5/= SINCE SATURDAY THE HIGHEST FOR TWO YEARS Advice was received in Hawera this morning that the price of New Zeaiand butter in London was 101 s to 102 s, with the market firm at the advance. On Saturday last it was reported that butter was quoted at j7s to 98s, and yesterday it had advanced to 100 s for the first time in two years. The reason for the rise and future advances in the price of butter is held to some extent in the drop in Australian production. Recent reports from Australia show that in Sydney it was not expected there would be anj substantial gain in production until the middle of September, and grading figures are considerably short of lastyear. Melbourne reports indicate that the cold weather experienced in August adversely affected the returns, while from Brisbane it is reoprted that throughout Queensland there have been only light rains, which were followed ay sharp frosts. The State is in need uf good heavy rains in order to hold production which, in the middle of August, was considerably below last year.

It is interesting to compare the pre. sent prices with those of the past two years. On September 1, 1933, New Zealand stocks in London were 67G9 tons, and the price rose from 91s to 94s on that date to 105 s to 110 s on September 22, which was the highest peak reached over the previous number of years. The price, however, was not maintained, and soon fell to below 100 s. At September 1 last year the stocks of New Zealand butter in London totalled 11,227 tons, the price being from 79s to 81s, while the stock position at the present date is 5240 tons, with butter 101 s to 102 s on a firm market.

It is thought that the" present strong position of New Zealand butter will 'o maintained on the average until the end of October, but whether the price will make any further material advance is, at the moment, doubtful. At September 1 the retail price in London was Is per lb., but with the recent advance, the retail price must take a further move, and this will be the controlling feature of a- further rise. The estimated stocks of all butter in the United Kingdom at present is 9.382 tons, compared with 46,432 tons at this time last year. A number of butter sales have been made of the end of August make at 11 l-8d f.0.b., which is equal to 94s landed terms, London. Enquiries have been made for September make at up to lid f.0.b., which is equal to 935, landed terms, London. Cheese is quoted at present at 50s to 51s, with the market firm at advance.

The Ne.v Zealand Producers’ Cooperative Marketing Association, reviewing the London market as at August 31, stated: “The butter market still continues to improve. The present position should continue for some little time, although we do not anticipate the market going a great deal higher. Stocks of New Zealand butter in the United Kingdom at date are 5240 tons, as against 11,277 tons at the same date last year, when the market was 79s to 81. Stocks decreased during the month by 1905 tons. Estimated stocks of all butters in the United Kingdom at date are 29,382 tons, as against 46,432 tons at the same date last year/ which is a decrease of 16,950 tons. “Arrivals of New Zealand butter in the United Kingdom during September will be 3507679 boxes, as against. 266,707 boxes for September, 1934, an increase of 83,972 boxes. Approximate arrivals for October will be 353,800 boxes, as against 320,064 boxes for October, 1934, an increase of 32,736 boxes.” HENRY A. LANE REPORT Messrs. Hem-y A. Lane and Co. Ltd., Hawera, report having received the following cabled market report from their London office: Butter, 101 s to 102 s, market firm at the advance; cheese, 50s to 51s, market firm.