DAIRY MARKET REVIEW.

New Zealand Herald, Volume LXIV, Issue 19807, 30 November 1927, Page 14

DAIRY MARKET REVIEW.

GOOD OUTLOOK FOR SUPPLIES CHEESE PRICES SATISFACTORY. [BY TELEGRAPH. —OWN CORRESPONDENT.] HAMILTON, Tuesday. A review of the market conditions for dairy produce is given by Air. W. Goodfellow, managing director of the New Zealand Co operative Dairy Company, Ltd., in his monthly statement to shareholders of the company. Mr. Goodfellovv said that during the month under review the London butter market weakened and Danish was reported to be selling at 181s per cvvt. f.o.b. on October 22. The latest cablegram, dated November 12, quoted Danish at 200.s and New Zealand finest, 178s, market firm, with upward tendency.

Mr. J. B. Wright, London manager for Amalgamated Dairies, Ltd., had stated that the amount of New Zealand butter in store bad been reduced to 3857 tons, which was the lowest stock of New Zealand butter held in London at any period during the last 12 months. Apparently the multiple shops had now reduced stocks to a bfcdrock figure and it was anticipated that substantial sales Mould be made during the next four or live weeks at very satisfactory prices. Everything indicated that Hie London market would remain firm until January. Thereafter the value of New Zealand butter would depend very largely on shipments from the Argentine and Australia. Butter stocks m the United States of America were slightly ahead of last year, but on the other hand it was reported that Canada would require to buy further substantial quantities. Mr. Good fellow said production was keeping up wonderfully well and a recent week's arrival into store was 66,000 boxes, against 57,000 boxes for the corresponding week of last year, while the Auckland Province was running approximately 20 per cent, ahead of last year's production. Recent advices from Australia indicated that prices were being reduced as production increased, but it was too early yet to forecast tho probable shrinkage in the Australian output, compared with a normal season. If the usual summer rains came, the trade in Sydney was of the opinion that Australia might yet export a considerable amount of dairy produce. The London cheese market had receded during the month, said Mr. Goodfellovv. and Now Zealand cheese- was now quoted at, 98s to 100s per cwt. This was a very satisfactory price, indeed, and there was room for a considerable further decline m price before cheese values would approximate the equivalent return of existing butter prices. As indicated previously, a shortage in Canadian production and in stocks in tho United States would, it was anticipated, result in good prices being maintained for several months ahead. It would appear probable that the cheese suppliers would obtain a substantially better return than those supplying the butter factories during the current season. The casein market remained firm, although sales during the month had been comparatively small. French lactic casein was quoted at £64 and Argentine at £66. During the month tho milk powder in Great Britain had been maintained at an average of slightly in excess of 60 tons a week. The latest quotations were:—New Zealand, £SO a ton; Krouse (Dutch), £44 c.i.f. ; Canadian, barrels. £3B c.i.f.; Morrell Goule, tins, £44 c.i.f.