OUTLOOK FOR BUTTER.

New Zealand Herald, Volume LXVIII, Issue 20766, 8 January 1931, Page 8

OUTLOOK FOR BUTTER.

improvement in tone.

AN ENCOURAGING PROSPECT.

CLEARANCES IN BRITAIN.

[BY TELEGRAPH. —OWN CORRESPONDENT, J HAMILTON, Wednesday.^

In view of the cabled offers being ceived from England by butter factories in the Waikato, the outlook is considered to be much more favourable than it has been so far this season. Therp is stated to be a good prospect of a further rise in butter prices.

An offer was made locally last week of lljjd per lb. for shipments up to March, and this was followed shortly afterwards by an offer of from another source, showing an increased margin of jjd. Factories are being advised from England to follow a consigning policy, or not tordisposal of outputs on an f.o.b. basis for less than Is 2d.

The New Zealand Co-operative Dairy Company, Limited, has received jnformation that the advance for butter-fat could be increased to lOd per lb. from December 30. Steady offers of late have stimulated interest in the forward position. The strongest point held to favour New Zealand prices is the remarkable clearance of held stocks at Home, from over 1,000,000 boxes to 250,000 boxes within seven months. It is considered that the reduction in stocks is the outcome of reduced prices.

Commenting on the improved tone of the market, Mr. Dynes Fulton, chairman of directors of the New Zealand Company, said the outlook certainly seamed brighter than it did a couple of months ago. It was not wise, however, to b» over-optimistic.

RISE ON LOCAL MARKET.

PRICE ADVANCED ONE PENNY,

Auckland wholesale butter distributors announce an advance of Id a lb. in the price of first and second grade butter. First grade will now sell retail at Is 3d, the same price as finest. Second grade will be Is 2d a lb.