Dairy Produce

Manawatu Times, Volume 61, Issue 144, 20 June 1936, Page 12

Dairy Produce

PBICES RECEDE,

UNSTABLE MARKET.

LONDON, June 18.

During the past week the butter market in London has displayed a tendency to quietness, and on the ckeeso market the tone has been easier. Current quotations are as follow, those for the previous week being in parentheses: — Butter. —Danish, 116 s to USs (120 s). Choicest salted: New Zealand, 107 s to IOSs (112 s); Australian, 107 s (112 s). Unsalted: New Zealand, 109 s (112 s to 113 s); Australian, IOSs (112 s). Cheese. —New Zealand: White, 60s (61s 6d to 625); coloured, 60s (625). Australian: White, none available (not quoted); coloured, none available (not quoted). Comparison Table.

out. COMMENT. CONFLICTING FACTORS. BIG GERMAN BUYING LESSENED RUSSIAN EXPORTS. The butter market is being subjected to the conflicting factors, of shortage of supply and fears of decreased consumption should tho retail price be raised. These arc the eternal waging elements that govern prices of all commodities at all times. A shortago of supply causes prices to rise, the extent of the rise is ruled by the degree to which consumption will continue for the dearer article.

In the case of butter, it would appear probable that a price of Is lb. retail to the Home consumer will cnablo a supply of 10,000 tons to be cleared weekly. Suppqse the supply falls to 9000 tons, the price perhaps rises to Is 2d retail. If then consumption drops to SOOO tons, there will be a surplus of 1000 tous weekly. This will weaken tho market. The price will probably settle at Is Id lb. and consumption will equalise supply at 9000 tons weekly. During the past week this “see-saw” has been in operation. It is reported that the buyers at Home arc withholding from purchasing in an endeavour to .keep prices within bounds. On the other hand, forward purchases have been made by London operators at Is 2d f.o.b. New Zealand ports. To profit from this they must sell this butter iu London when it arrives, at over HSs cwt. This is a long way above to-day’s quotation at loßs. Markets are quite unpredictable. This we do know. The stock position is good and prosperity is greater at Home than for years past. The market may stand Is 2d for a time. It is unlikely that last week’s 112 s will represent this winter’s peak price.

Butter, N.Z., choicest salted: — This week .. .. 107/- to 10S/Last week 112/A month ago 07/A year ago .. .. SO/- to 00/107/6 equals 16.2d lb. butter-fat payout. Cheese, N.Z., coloured: — This week .. .. .. .. 60/Last week .. .. .. .. 62/A month ago 56/A year ago .. .. -14/- to 44/6 00/- equals 12.7d lb. butter-fat pay-