LOW PRICE FOR BUTTER

New Zealand Herald, Volume LXIX, Issue 21359, 7 December 1932, Page 7

LOW PRICE FOR BUTTER

RATES NOT WARRANTED MARKET ABSORBING SUPPLY THE INFLUENCE OF AUSTRALIA A comprehensive review of the London market for New Zealand butter and cheese has been issued by Joseph Nathan ami Qompany, Limited, the Auckland representatives of Trengrouse and Nathan, Limited, ..London. "When at the commencement of the present season finest New Zealand butter was quoted at 115s, the prospects appeared to bo fairly bright, but any hope of these rates being maintained was quickly dissipated as succeeding weeks showed a lifeless and sagging market, with almost daily reductions in quotations," slates tho report. "To-day we are faced with the. lowest price recorded since the industry was placed on a proper commercial footing. Actually there appears to be no real reason for quotations to be as low as they are at present, unless it is absolute lack cd' confidence on the part of buyers. "Shipments have necessarily been heavier than last year so as to keep pace with the unprecedented increase in production during the earlier months ol tho season, but so far the market has readily absorbed these increased quantities, and the spot stock position is sounder than in tho previous year. Possibly tho tact that both Australia and New Zealand are so -far experiencing excellent seasons lias made buyers unusually pessimistic as to the future, but, candidly, we are of tho opinion that prices have been forced down to a lower figure than is warranted. Recent Price Fluctuations "Some particularly heavy shipments are due to arrive in England during the next week or so, and if the present 'bearish' tone continues there is no telling how far the market may recede. On Thursday, November 24, New Zealand butter was quoted at 85s, a record low level, but a remarkable change took place next day, and on the following Monday a rise of 5s per cwt. had occurred, only to drop back immediately 2s per cwt. on the succeeding days. The market is now again at its previous figure. "As has been the experience in former years, first-grade butter during the period in between seasons was making the price, and differences up to 10s per cwt. occurred between that and finest, which was naturally in short supply. This is not as it should be —it is one of the evils of the creation of a finest grade, of which buyers always take the advantage. Tho same remarks apply to cheese, but more particularly to butter. This is a matter which should be seriously' considered at no distant date, as a return to the old first and second grades would obviate the difficulty mentioned. Cheese Market Steady

"Another factor which has not helped the market has been the low c.i.f. prices offered bv Australia for forward shipment. Referring to the cheese market, the report states that, fortunately, it has been particularly steady in comparison with that for butter, and, although quotations are a little lower than at the commencement of the season, the prospects for cheese are decidedly brighter than for butter. This, no doubt, was due to the good statistical position which had been in evidence for some considerable time. "While butter production continues to increase all over the world, cheese remains more or less stationary," continues the report. "Of course, the same influences do not apply, as butter is produced in quantity in almost all countries, while cheese is confined to only two in so far as the cheddar type is concerned. Stocks are practically half what tlicy were at the same time, last year, and consumption is caring for all available supplies. In fact, as we write, the stockin first hands is practically exhausted, and the arrival of 21,000 crates b} the Renmera is awaited. ■

WEAK TREND OF MARKET BUTTER NOW 82s TO 85s The Loudon market for New Zealand butter continues to be unsteady mid there is a further downward trend. Latest, advices to merchants give the price of finest salted at from 84s to 85s a cwt., but one firm quotes 82s as its lowest itguie. The level of 84s was first reached on November 25. There followed a temporary improvement, prices rising to 92s on November 28, hut since then conditions have quietened, and prices have gradually declined. Cheese values also show a downward movement. White and coloured are now quoted at 61s to 625. Merchants have received the following cablegrams from their London principals, dated December s: Joseph Nathan and Company, Ltd., from TrengrousO and Nathan, Ltd.— Butter: Finest, 84s to 85s; first, 82s to 83s. The market is slow. Cheese: 625. The market is very quiet. Dalgety*and Company. Ltd., from Samuel Page and Son.—Butter: Prices are 2s lower. New Zealand, finest suited. 82s to 84s. Cheese: Prices are 3s lower. NewZealand, white and coloured, 61s to 625. Mr. if. S. Withers, from A. C. Rowson. —Butter: Finest, 85s; first grade, 84s; Australian. 85s. The demand is improving. Cheese: White and coloured, 625. TALLOW MARKET UNCHANGED PRICES FOR DOMINION EGGS The Department of Agriculture has received (he following cablegram, dated December 3, from the High Commissioner for New Zealand, London : Tallow.—The market remains unchanged. Hemp.—'The Manila market is steady. Prices are slightly higher on bears covering. "K " grade for December-February shipment sold £l6 15s. The sisal market was quiet early in the week, but a little firmer at the close. No. 1 good marks for December-February shipment, value £ls. In New Zealandthere is more_ offering and prices have eased. Small business has been done with high points at £l4 10s, fair at £l3 10s, and common at £l2 5s to £l2, 10s for December-January and January-February shipment. Eggs.—The market is steady. English, national pack, 16s 6d to 21s; English, ordinary pack, 18s; Danish, 14s to 17s 6d; Australian, lis 3d to 12« 9d; New Zealand, sold 151b. per long hundred, 12s to 12s 6d; 161b. per long hundred, 12s 6d; 171b. per long hundred, 14s 6d; 181b. per long hundred, 15s 6d. Peas.—The market for maples is slow and prices are lower. Sellers of Tasmanian for February-March shipment arc asking 50s; Now Zealand for February-March shipment 495. Nominal values Is less. The market for blues is firm. Tasmanian for February-March shipment, nominal value, £lB.

RUBBER STATISTICS LONDON. Dec. 5 Stocks of rubber at. the end of November compared with those at the end of September and October are : Sept. 30 Oct. 31 Nov. 31 Tons Tons Tons London . . 44.972 42(614 40,207 Liverpool t . 53,261 57,702 55,774