RISE IN BUTTER

New Zealand Herald, Volume LXX, Issue 21596, 14 September 1933, Page 10

RISE IN BUTTER

NEW ZEALAND AT 100s HIGHEST SINCE LAST YEAR MARKED RECENT ADVANCES DROUGHT CONDITIONS ABROAD For the first time since the opening week of November, 1932, quotations for New Zealand finest butter in the London market; have touched 100 a per cwt. During tho last six months the market has improved, but tho movement did not become marked until the beginning of August. Since then there has been a rise of* 14s to 15s per cwt. A firming tendency is a usual experience with ihe decline in New Zealand arrivals at the end of the season, but additional factors are operating on this occasion. Present indications, according to leading authorities in the industry, are that another bountiful season will be experienced in New Zealand, and with a continuance of the present favourable weather conditions, a fresh production record will be established. This, coupled with the higher prices, should result in a generally improved outlook throughout tho industry. In the opinion of Joseph Nathan and Company, Limited, it is too much to hope for prices to continue to rise at the present rate and, in its view, in tho normal course prices should stabilise around 105s to 110s per cw;fc. Stock Position Favourable The principal factors influencing the market at present are the drought conditions in England and parts of the Continent, and the lack of plentiful rains in Australia, where the spring output has been * considerably curtailed. The full effects in Australia arc indicated in the latest grading figures. For tho week ended August 26 only 26,542 boxes of butter were graded in all the States, as compared with 50,297 boxes for the same week last year. Victoria was practically responsible for the decrease, as gradings there were only 9251 boxes, as against 26,294 boxes for the same period last year. Although rain has fallen recently in some dairying districts, more is urgently needed in others.

New Zealand deliveries to the London market are being maintained at a higher rate, 11,282 tons having been landed during the six weeks ended September 8, as against 8150* tons for the same period last year, but the falling off in Australian shipments and in English production has had a favourable effect on the stock position. Only a little over 5000 tons are now in store, compared with approximately 3000 tons at the corresponding date last year, when prices were 110s to 112s per cwt. Recent Range of Prices

The cheese market also has begun to advance, after remaining remarkably steady for some time. Recently there has been a rise of 3s to 4s per cwt. and a fcurther improvement is expected, especially if the hot weather in England continues. All stores have been cleared of old season's cheese, and new season's is just commencing to come in.

Owing to a scarcity of New Zealand finest butter on the London market during October last year, prices registered a nominal rise in October, but in spite of a continued shortage, a weakness developed, which was accentuated as the season progressed. - November opened last year with the market nominally 103s. Within ten dajrs the price eased to 100s, from which it declined steadily until the record low level of 64s per cwt. was reached early in April this year. Mean quotations for New Zealand finest and Danish butter in cwts. on the London market at approximately the corresponding dates each month since September 12, 1932, are compared in the following table:'—

Local Buying Activity Buyers have been very- active in the local market during the last few weeks at prices ranging up to IOJd per lb. f.o.b. for first grade and lid for finest. At 100s per cwt. the price of butter f.o.b. at the ruling rate of exchange of 24 per cent for demand drafts is 11.72(1 per lb., compared with 11.43 d per lb. f.o.b. at the same time last year, when butter was quoted at Ills and the current rate of exchance on demand drafts was 8J per cent. Current offers in nearly all cases are for prompt shipment in named steamers. Little business is passing any further ahead than early October. Only a. small quantity of cheese is available at present, arid no recent offers have been reported. Auckland merchants yesterday received the following cabled reports ffom their London houses, dated September 12: — Joseph Nathan and Company, Limited, fromJPrengrouse and Nathan, Limited.—Butter, 100s. The market is firm. New Zealand Producers' Co-opera-tive Marketing Association, Limited. — Butter: New Ze&land, finest, 99s to 100s; firsts, 98s to 99b; Danish, 118s. Cheese? White, 53s to 545; coloured. 555. Both markets are firm. POSITION IN CANADA PROBLEM OP THE SURPLUS (Keceived September 13, 5.5 p.m.) OTTAWA 4 , Sept. 12 Canada has made too much butter and finds itself with 10,000,0001b. more than is needed for domestic consumption this winter. Representatives of tho National Dairy Council are conferring with the Minister of Trade and Commerce, Mr. H. H. Stevens, and the Minister of Agriculture, Mr. R. Weir, to see what can be done about it.

The Canadian product takes a discount on the British market compared with New Zealand butter, but holders in Canada are reported to be prepared to take the Joss and ship their surplus to the "United Kingdom rather than glut the domestic market. They would recoup themselves on the seasonal advance on upward of 59,000,0Q01b. sold for home consumption*.

1932 N.Z. Danish September s d a d 111 0 124 0 October 114 0 118 0 Noven ber # 97 0 120 0 December e83 6 122 0 1933 J anuary # , 63 6 104 0 •February 79 G 107 0' 1 March .. 74 6 99 0 T + + •April .. 70 0 91 0 May .. , # 79 0 96 0 June .. , # 82 6 93 0 July .. 79 0 91 0 August .. 89 6 103 0 September 100 0 118 0 tToward the end of March and earlv in April the butter market declined to unprecedented low prices, touching the record low level of 64s per cwt. on April 5. 1933. The fluctuations in the price of New Zealand cheese are: — 1932 White Coloured 8 d s d September 63 0 57 6 October 65 6 61 0 November 64 0 59 6 December 58 0 60 0 1933 January 48 0 56 0 "February • • 47 0 57 0 March .. • • 41 6 48 G April ., • • 40 0 46 0 May .. 47 0 53 6 June .. 49 0 I 54 6 July • • 50 0 52 0 August .. • • 49 0 51 0 September 53 6 55 0 •From January 20, 1933, the exchange premium on demand drafts was increased to 24 per cent, as against 81 per cent previously ruling. i.