DAIRY PRODUCE MARKET

New Zealand Herald, Volume LXIV, Issue 19743, 16 September 1927, Page 10

DAIRY PRODUCE MARKET

FIRM LONDON DEMAND.

ADVANCES AGAIN RAISED. OFFERS MADE TO FACTORIES. DOMINION'S STRONG POSITION'. [BY TELEGRAPH. —PRESS ASSOCIATION.] WELLINGTON. Thursdij. The secretary of the Dairy Produce Board has received advice from London that merchants have agreed to increase advances against shipments of dairy produce on consignment to Is 5d for butter a; d Sid fur cheese. IMs certainly indicates confidence in the rii. rket for some little time to come. The rato <•: advance previously was Is 4d for butter, i»Bd tor cheese. Shipments by the steamer Port Caroline, to , sail next, week, will be ihc first to benefit by the higher rate. The increase is in Lino with recent movements of the London dairy market. There has been a heavy fall in arrivals from the Continent owing to the lateness of the season. Reports have stated that | Germany is now purchasing in Denmark and Holland, and production in other exporting countries of Europe has shown the usual seasonal contraction. Canada also has experienced a lean aairving season and its western provinces are already drawing on New Zealand tor butter, while unusually large shipments are due to go forward later to the eastern ports. Meanwhile drought in Australia has restricted exports from the Commonwealth, and the Argentina is reported to be experiencing an unfavourable spring. All these factors are combining to produce a very strong selling position in London and New Zealand is fortunately in possession of the goods to take advantage of it-. Production has never i before been so abundant in the early | months of the season, the Auckland stores receiving 114,149 boxes of butter from July 1 to September 7, against 83,015 in the corresponding period last year, an increase of 31,134 boxes, or 37 per cent-. The output of cheese lias advanced proportionately. Auckland farmers will have documentary evidence of the favourable tarn of the market next Tuesday, when cheques will be posted out on account of butterfat supplied in August. The average advance will be la Sd per lb., but one large company has announced a payment of Is Sid. Factories have also been receiving higher offers during the past few days for their output, these ranging from is s|d to Is 64d, f.o.b. This latter price is offered for butter for immediate shipment only but Is s|d has been offered for shipments to the end of December. London importing houses have also offered Is 5d for January shipments, and, according to one report, for shipments as late as March, which would not arrive in London until May or June. In any case the position is wonderfully strong at present, and the good offers for future delivery indicate a considerable degree of confidence that rates will rule reasonably high on the London market in the opening months of next year. The Katjiara Co-operative Dairy Com* {••any, Limited, has decided to make the advance payment on September batter-fat Is 6d per lb., with tho usual premium of jd for "finest" grade.