DAIRY PRODUCE MARKET

New Zealand Herald, Volume LXIX, Issue 21099, 5 February 1932, Page 11

DAIRY PRODUCE MARKET

RECENT DECLINE IN LONDON. CONDITIONS IN DECEMBER. DENMARK'S UNEXPECTED ACTION. The heavy importations of butter into Great Britain in 1931 are emphasised in a review of the market issued by W. Weddel and Company, Limited, London, on December 21. According to the figures given, arrivals of butter for the 11 months ended November were 55,976 tons more than in the corresponding period of 1930. Commenting upon the puzzling state of the market and the unexpected decline since Great Britain left the gold standard, Weddel and Company states that outstanding among the factors responsible for this decline was the fact that Denmark, from whom Great Britain at present imported about one-third of her supplies, abandoned the gold standard rather earlier than was generally expected, so that with heavy arrivals from both New Zealand and Australia, ample stocks, fully sufficient for the requirements of the market, had been available from sources unaffected by the abandonment of the gold standard. Other factors had been the low offers for forward shipment from New Zealand and particularly from Australia, the pressure to sell current arrivals on the part of some of tho weaker holders in London and the knowledge which was general throughout the trade that the make both in New Zealand and Australia was comparatively heavy. All those facts had gone to create, for the time being, a very "bearish" position on the market. Trading with the Continent was also for the present restricted—with France on account of the quota system and with Germany on account of the finance restrictions imposed by the German Government. Since this report was despatched the market weakened further during January, but in the last week or so has taken an upward turn. Weddel and Company's agents, A. H. Turnbull and Company, Limited, has received the following cablegram from its principals, dated February 3:—Danish butter, 121s to 1245; New Zealand finest salted, 99s to 102s. Cheese: New Zealand, white, 62s to 635; coloured, 61s to 625. Both markets are uncertain. The New Zealand Loan and Mercantile Agency Company, Limited, has received the following cablegram from its London | house, dated February 3:—Butter, 101s |to 102s. Cheese, 625. The maket is very I quiet.