RISING BUTTER MARKET

New Zealand Herald, Volume LXV, Issue 19947, 16 May 1928, Page 10

RISING BUTTER MARKET

ADVANCE OF 4s IN WEEK. * IMPROVEMENT IN DEMAND. ■ , » ■ , v BACKWARD NORTHERN SPRING* A further rise of 2s per cwt. in the price of butter on the London market is reported in latest advices. Quotations are 166s to 168s, a rise of 4s on those ruling a week ago. The market is reported as improving. The more cheerful tone is welcome, as only a week ago the report was that the market was very slow with a downward tendency. It is possible the improvement is due to the backward spring in the Northern Hemisphere reducing dairy production, and the entry of buyers into the market to cover against a possible shorttage and higher prices as the season advances. At this date last year New Zealand butter was selling at 160s on a rising market, and it rose steadily until tbs quotation was 170s and over in the first half of June.

Commenting on the latest report in & circular to dairy factories, A. S. Paterson and Company, Limited, state:—"This week's improvement in the position is another instance of how quickly the market can change its course. Last week's advices were to the effect that there was a downward tendency, but we bow have an improvement of 4s in the price, with an upward instead of a downward tendency. Our opinion is that the upward movement will in all probability continue, one good reason for this being that th» Northern Hemisphere producing season is reported as being backward. There is fc certain amount- of speculative buying being done in London, and this will, ol course, help to keep values moving in tha right direction." The same firm reports that the cheese market is quiet, quotations being 96s t# 975.

Dalgety and Company, Limited, repo<s having received the following cablegram from their London house, dated May l4t —Butter: There is more demand. Price\ 2s to 4s more (now 165s to 1675). Cheeset The market is very quiet. Prices, 96s te 975.