BUTTER IN LONDON.

New Zealand Herald, Volume LXV, Issue 20137, 24 December 1928, Page 11

BUTTER IN LONDON.

heavy forward buying.

BRISK BUSINESS DONE.

MARKED RISE IN PRICES.

REVIEW BY MR. GOODFELLOW

Pet TEI.EGRArH. —OWN correspondent. ] HAMILTON, Sunday.

The most active f.o.b. buying of butter lhat has been experienced for some years j, as been witnessed during the past month, said Mr. W. Goodfellow, managing director of tho New Zealand Co-opera-tive Dai 17 Company, Limited, in his monthly statement to suppliers. Mr. Goodfellow said a month ago the best informed London opinion indicated Is 4d per lb. f.o.b. as tho value of the November make of butter, and a slightly ]ower price tor December production, provided normal supplies continued to bo received in London. During the past two it had become obvious that the prolonged drought in New South Wales and Queensland would result in a rapid decline of exportable butter from Australia. Further, Eastern Canada had purchased abnormally large quantities of New Zealand butter for shipment during December and January, and finally the Continent of Europe was buying Danish butter more heavily than usual.

" A Spectacular Rise," The combined result had been a spectacular rise in tho London market at a t:rne when, under normal conditions of production in other countries, prices would have declined considerably. Mr. Goodfellow said it was now safe to predict that factories which sold at Is 5d 1.0.b. at the commencement of the season would not obtain as good a result as t.bose consigning. The New Zealand Co-operative Dairy Company, Limited, had sold heavily to Eastern Canada, for shipment during November, December, and January, with the object of reducing London arrivals at a time when the market was usually in a weak state, and this action in itself had materially strengthened, not only the price of the company's product in London, hut the market for all New Zealand butter.

During tho past fortnight London buyers had purchased large quantities of NewZealand butter for December, January, February and March shipment, at Is 5d per lb., f.0.b., and smaller quantities at la sjd. Menace ot Group Buying. Mr. Goodfellow said tho menace of group buying by London multiple shops had passed for the present season, owing to the keen competition for tba limited supply of bn( tor available, and New Zealand had again profited by the misfortunes of her less favoured competitors. The price for Anchor butter had ranged from 178s to 186s during the past fortnight, and the average weekly deliveries had amounted to 1450 tons, as against 864 tons for the previous period. This increase was accounted for mainly bv tho Christmas demand and th~ all-round shortage of stocks.

The cheese market had been dull, prices ranging from 97s to 104s for white, and from 99s to 102s for coloured. The market was slow and fhere had been no inquiry for forward business. London buyers were offering just under 9d per lb. f.o.b. for forward deliveries.

Milk powder and condensed milk sales were maintaining a satisfactory level. Sales of casein were keeping paco with delivery, and the demand continur 1 to be active.