GOOD PROSPECTS

Manawatu Standard, Volume LIII, Issue 251, 20 September 1933, Page 6

GOOD PROSPECTS

FIRM BUTTER MARKET. PRICES FURTHER ADVANCE. Cabled information was received in Palmerston North this morning that the butter market had shown a further advance and was firm with prices of New Zealand at 106 s to 108 s per cwt. This represents an increase of 16s a cut. within the past four weeks, and the prospects are the most encouraging for many months. The steady appreciation in values which has lately been apparent has given a much improved outlook to the dairy industry, and a distinctly buoyant tone prevails Cheese is quoted at 53s to 54s per cwt. for New Zealand, but this market is reported quiet. Ruling quotations in London on August 18 last for. New Zealand butter were 91s to 92s per cwt., and for cheese 49s to 50s per cwt. Aleanwhile f.o.b. offers for butter in store have been increased successively from lid to 114 d and finally ll J id, the latter figure being reached this mqrning. There has been some activity in the forward market, but the present London price is equivalent to an f.o.b. value of 12Jd, including exchange, for butter. For the first time since October last New Zealand salted butter touched 100 s six days ago, and it has since advanced at the rate of about Is 6d per cwt. daily. The primary reason for the advance, according to cabled advices from Home, has been the spell of dry weather experienced in England and to a lesser degree on the Continent. Other contributing factors, however, are increased consumption in England, together with reduction in stored stocks, and lower production in other countries. The Argentine shipped only 8 tons of butter to England in August, compared with 778 tons in August, 1932, while Australian exports to the United Kingdom were 2461 tons, as against 4977 tons in the corresponding month of last year. The total exports from Denmark in January to August of this year have been 5732 tons less than in the same period of 1932, and the increase in their shipments to the United Kingdom was 791 tons. The Danish Smor Tldende (Butter News) reported in July that because of the exceptionally poor prices obtainable for butter, farmers were curtailing production by killing 3000 to 4000 cows weekly, and it was understood that the same policy was being adopted by Holland. Farmers would not indefinitely continue to purchase fodder and produce milk unless they could show a profit on the turnover. New Zealand is differently situated, as practically all the fodder is grown on the farm, the outlay on manure being the principal item of expenditure. The question uppermost in the minds of all, it is stated, is whether the market will hold, bu- the latest increases are stimulating in this' respect. General rains have fallen in the South of England, but it is still dry in the Alidlands. September and October aro usually the peak months for prices, with a declining market in November and December, when heavy quantities from the Southern Hemisphere are in sight. Gabled advices from Australia indicate that exports will increase from the end of this month onwards, and November shipments are expected to be about equal to those of November, 1932, provided that Queensland has general rains in October. New Zealand show increases of 1700 tons for August and 575 tons for the first week of September. Tremendous increases in production are reported in the Alanawatu district under the influence of extremely favourable conditions for the opening of this season. Farmers were just beginning to feel the need of moisture, though there was no shortage of feed,, and the present warm rain has come at a timely period to promote vigorous growth of pastures.