A BETTER MARKET.

Manawatu Standard, Volume LV, Issue 176, 25 June 1935, Page 6

A BETTER MARKET.

It is a matter of considerable satisfaction to this country that the upward trend in the butter market, which set in a few weeks ago, is being maintained. New Zealand’s finest product has reached 90s a cwt as against 82s at the beginning of the month, and 78s early in May. This is the best price obtained on the London market since February, when New Zealand butter touched as high as 94s consequent upon a demand setting in from New York, the great drought in the United States having caused a marked shortage of stocks. It was, however, a fluctuating demand and prices soon afterwards receded again to a low level. The reasons given for the latest advance are lessened production on the Continent and smaller quantities from New Zealand and Australia. So far the summer in Northern Europe and Britain has not brought warm weather, and the restricted output on the Continent. has eased the flow of imports into Britain. Germany has been compelled to buy Dutch butter, and that experience should be repeated by other countries which are not ranked among exporters of butter. Production in New Zealand this past season did not reach the high level of the previous year’s and stocks afloat, from this country and Australia are two-thirds of the total at this time in 1934. London reports show that the statistical position is sound, and as speculators are active the market, it is stated, is likely to continue its hardening tendency. There is also a firmer tone in cheese. A recent review of the wool situation by the London Financial News painted a cheerful outlook. The uniforms needed for Germany’s new army have made heavy inroads into stocks which must be replenished; Japan’s imports last year were fewer than in the previous year, but her exports of woollen goods were higher; for the first time Russia’s textile production has exceeded her planned estimates, and in January the Soviet took from London nearly three times the quantity of wool purchased in 1934. These are signs which the London journal regards as most, cheerful in surveying- the wool position. The improved prices in Sydney last month were attributed by experts to the same causes, and they incline to the opinion that when the new clip is placed on the market higher prices will be paid by overseas buyers when filling their requirements. An excellent market is reported from London also for New Zealand apples and pears. Large quantities are being disposed of at firm prices, and the best returns for some time past —a distinct, change from the disastrously low prices of recent years—are reported. These are welcome movements away from the depressed values which have been ruling lately for the products mentioned.