PRODUCE REPORT

Hokitika Guardian, 11 December 1934, Page 2

PRODUCE REPORT

POSITION OF LONDON MARKETS

Messrs Turnbull and Co. arc in receipt of the following London advice . Butter Tho market firmed at the beginning of November, owing to Germany buying increased quantities of Continental butters, and also due to tlie ; fact that the Australian Daily Board decided to limit their shipments from the middle of November to 2,500 tons weekly. Messrs. W. Wed del and Co. Ltd.,’ cabling on the 6th. December, state that the trade as a whole, was surprised that this advance was not maintained, as consumption continued good and spot stocks in London have been steadily reduced through the month. They advise us that the statisical position to the end of Junuary.is satisfactory.

According to the Imperial Economic ■ Committee, the stocks in London were reduced during the- fortnight ending the 28th. of November, by 3,590 tons, as against a reduction over tho same fortnight last year, of 2,488 tons. The stocks, however, as at the Ist. December, were 18,350 tons as against 11,590 tons. The New Zealand arrivals in December and January will be considerably less than last year, and provided the consumption continues, the stock position should he greatly improved during the month. Messrs W. Weddel and Co. Ltd. also advise us that the German demand for Continental butter is continuing. Forward Buyers:—During the month j fair quantities of butter have been sold forwnul for December and January shipment at round about B£. to B}. per lb. f.0.b., but during the past week, there has been very little forward business and buyers seem to have practically retired from the market. Our principles advise us the forward buyers are somewhat doubtful as to whether the Australian restrictions on shipments will continue and are consequently nervous of operating forward. It is already reported that the

Australians have decided to increase their weekly shipments to 3,000 tons per week, but even- so, the quantities of butter in view for consumption daring December and January are not excessive.

Cheese:—The cheese market has followed butter, and lias shown a drop of almost 10s. over the month. Messrs. W. Weddel and Co. Ltd..cable us that Colonial stocks continue to increase, and that the demand for cheese is confined to immediate requirements. However, they anticipate a steadier market.

There has been no interest whatever shown by forward buyers, and until pot stocks are reduced, we do not anticipate and forward activity in cheese. However, with an expected improvement in consumption, the stocks in London should he considerably reduced during the next six months.