THE BUTTER MARKET

Nelson Evening Mail, Volume LVI, 29 December 1924, Page 5

THE BUTTER MARKET

SHARP IMPROVEMENT IN TONE A sudden change in the tone -of the butter export market of great importance to New Zealand' producers took place recently. ' This occurred after nearly three months of inactivity on the part of London buyers. On Friday offers .from London -were circulated among factories commencing at Is 6|d f.o.b, for butter now on the water. Later in the clay offers reached Is 6|d f.o.b. for but--ter as far in advance as the February shipments. As the shipments, during February will clear' up portion of the Dominion's output of butter, it. is obvious that tin's changer! condition of the market means much to the producers. For a month past factories had been, vainly endeavouring to sell December make of 'butter at Is 5d f.0.b., being approximately 8d per lb below the average London price. Buyers', evinced no interest in these offers, as a slump in values anticipated after the usual Christmas demand had been satisfied. So far no information has been re-" ceived giving the reason for the sudden strengthening of the forward market, but in view of the demand for butter from the Continent for some months it must be assumed there is evidence that the demand will not only be maintained, but increased during the northern winter and early spring, and that values reach even higher limits than last week's forward offers indicate. These prices will naturally affect the value of butter 'locally. In anticipation of low values ruling in London in the New Yeai-, the price of first grade butter has fallen on the Auckland market, to th'e equivalent of Is 4d f.o.b. With the present offers of Is 6gd for the same' quality butter, it is only reasonable to anticipate an early readjustment of the local price.— Auckland Corrfisr>nndenf. i 'Pr(»SK.