HIGHER PRICES

King Country Chronicle, Volume XXV, Issue 3371, 29 September 1931, Page 5

HIGHER PRICES

PRIMARY PRODUCTS IN LONDON.

WOOL, BUTTER, CHEESE. With the important exception of frozen meat, the London markets for the Dominion's chief primary products are reacting strongly to the position created by the suspension of the gold standard in Britain. During last week the values of wool quitted at the present series of London sales recovered most, if not all, of the decline on July closing rates shown at the opening of the sales. There was also a strong advance in the prices of Bradford tops, the market being very active.

Dairy Produce Up.

The week-end cables record an advance of 6s. to 7s. a cwt in the wholesale price of New Zealand salted butter in London. Friday's closing quotation was 116 s. to 120 s. a cwt., and since then there has been a further advance of 2s. a cwt., a level that has not been seen since last March. It represents a good rise on the prices ruling during the last three or four months, and a strong advance from the low level of 104 s. to 105 s. recorded last May. The cheese market is described as "active and advancing." Friday's London quotations were 65/67/- a cwt. —an advance of 4/- to 5/- on the week. The Dairy Board's London office cabled that a few sales of New Zealand coloured cheese were reported on Friday evening at 70/-. A year ago the price was 73/75, and "low water mark" was reached during May at 46/50 a cwt.

The retail prices of butter in London on Friday still stood at 1/2 and 1/4 a lb. for New Zealand and Danish respectively, but the Dairy Board is advised that a rise of Id is expected this week. The board's London office cabled last Wednesday that any serious advance in the retail price of butter "must affect consumption in favour of margarine." It remains to be seen if thi.s week's advance will have that effect.

Frozen Meat Slow.

The London frozen meat market has a weak tone, and trade is slow owing to the heavy supplies of fresh Home-killed mutton, lamb, and pork. Other London cables report, sharp advances in the prices of cotton, rubber, jute, and other commodities. In Liverpool, American "middling" cotton, October delivery, was quoted on Friday at 4.88 per lb., an advance of 1.34 d in a week. Rubber showed fractional rises per lb., while jute was up by £2/13/9 a ton to £l9/3/9. Copra advanced by about £2 a ton, and there were also sharp rises in the prices of linseed oil and turpentine. Value of platinum, osmiridium, and all precious metals were up by 20 to 30 per cent.

JAPANESE BUYING WOOL. The Japanese section still dominates the wool market, stated a Sydney authority, writing on September 10. It is fortunate that this demand has been intensified. There are more and better orders on hand, and buyers are filling them freely, and the requirements now cover a wider range. Japan is really the king-pin in the wool business at the moment, and that the demand is likely to continue is indicated by latest reports from that country. The first half of 1931 has prodxiced much better trade results than at any time during 1930. The Japanese drive to make all its own woollen goods is showing good progress. The country is each year buying less tops and yarns, and making more of its own requirements.