BUTTER PRICES

Manawatu Standard, Volume LI, Issue 29, 5 January 1931, Page 6

BUTTER PRICES

MARKET’S GOOD ADVANCE

FOItWABD BUYING. ACTIVITY. Accepted as indicating a much improved tone in the butter market, numerous f.o.b. offers for shipments up to the end of March have been received during the past week by dairy companies operating in tho Manavvatu district, and this marked renewal of forward buying activity 'for the London market has reaffirmed tho growing confidence in a steady price improvement. The outlook is considered to be much more favourable than it has been for months and the prospects of a further rise in butter values arc held to be very good indeed. The outlook has changed entirely. Private advices received in Palmerston North confirm an Auckland report of an advance of 6s per ewt. last week up to 120 s for finest grade New Zealand butter. It is anticipated that the New Zealand retail price in London will bo advanced to Is 3d per pound to-day. Dozens of offers were received by Manawatu factories last week for their immediate future output. Illustrating the quickening of the pulse of tho market, an offer was made locally last week of lljjd for shipments up to March, and this was followed two minutes later by an offer of from another source, showing an increased margin of |d. Offers of 10gd ;;er lb a week or two ago have been advanced to lljd. Factories are being advised from England to follow a consigning policy or not to dispose of outputs on f.o.b. basis for less than Is 2d.

Information that the advance for butterfat could be increased to lOd from December 30 was received in Palmerston North to-day. Steady offers of late have greatly stimulated interest in tho forward position. The strongest point held to favour New Zealand prices is the remarkable clearance of held stocks at Home from over one million boxes to 250,000 boxes within seven months. It is considered that this is tho outcome of the reduced prices.

When more of the stored stocks at the market end disappear it is stated that prices will increase, as the market i 6 showing an upward tendency all the time. CLEARING OF STOCKS. Dealing with tho position in November, and the factors which preceded tho present rise, a recent market report stated: “With the still insistent desire among holders of cold stored stocks to clear out, the selling pressure is not relaxed, and consequently prices are easier all round. Some of the cold stored stocks which are being forced out at low prices are finding their way to the Continent, and their demands may assist the situation. Most of the finest butter that was cold stored is now cleared, and that remaining consists mainly of secondary parcels or goods that have lost their quality through age.” Latterly these predictions havo been fulfilled.