BUTTER FAMINE

Hawke's Bay Tribune, Volume XXIV, Issue 235, 17 September 1934, Page 9

BUTTER FAMINE

South African Drought

COMMERCIAL SUMMARY

By Telegraph—Press Assn—Copyright LONDON, September 16.

11.10 butter trade is still in the doldrums. but there are some signs that a slight improvement may possibly come before long. Stocks in cold store, though still very heavy aio beginning to decline ami the total afloat from Australia, New Zealand and the Argentine is also tailing otf. There are prospects of an increase 111 German quota imports tor the remamdet oi the year. This should mean smaller arrivals ot Danish here.

it is reported that south Africa is threatened with a butter famine as 1 result of last year’s drought. This may mean that some butter will be shipped there from England, so Australian pro. queers might well consider sending shipments to South Africa.

W itii the holiday season drawing to a close, the Stock Exchange is beginning to show more activity and the general tone is quite satisfactory. The gilt-edged market is steady with Dominions stocks in good demand. The new Nigerian conversion loan had a good reception The Argentine conver sion of a number of five per cent stocks, amounting to nearly £10,000,000 into 4J per cent, sterling bonds at £93 10/- was also well received. This issue is interesting from the fact that the Argentine’s credit is so good that the Government has been able to. dispense with the underwriting of a large proportion of the issue, only about £4,500,000 being underwritten. The Australian egg season opened under somewhat inauspicious conditions. Britain is having an unusually prolonged summer with temperature as high as mid-Juue. Similar conditions prevail on the Continent, with the result that egg production has been maintained at a very high rate, consequently the market has been flooded with Home and Continental eggs. Some weak holders of the latter are selling at almost a give-away price.