LOW BUTTER PRICES

New Zealand Herald, Volume LXXI, Issue 21906, 15 September 1934, Page 9

LOW BUTTER PRICES

LONDON MARKET SLOW . I FALL OF 2s 6d OVER WEEK EASIER RATES FOR STORED The demand for butter on the London market remains slow and prices are unfavourable. New Zealand, fresh landed, is quoted at 75s to 77s per cwt., but stored stocks are selling as low as 725. This is a fall of 2s 6d over the past week. Australian butter is selling at 72s to 735, also a drop of 2s 6d over the week. At 104s, Danish butter is 6s lower for the period. The cheese market is dull. White cheese is quoted at 47s 6d, which is Is 6d lower than a week ago, and coloured is unchanged at 45s 6d. The Press Association message sent from London on Thursday states that the butter market is slow. Danish is quoted at 104s; choicest salted New Zealand, 75s to 775; Australian, 72s to 735; unsalted New Zealand, 85s to 86s; Australian, 7os to 775. market is dull. New Zealand, coloured. 45s fid; white, 47s 6d. The following comparative table shows the mean closing quotations on the London market for the last two weeks: —

A month ago the butter market was quiet. Danish was quoted at 106s; choicest salted New Zealand, 81s; Australian, 765; unsalted. New Zealand. 88s; Australian, 78s. The cheese market was steady. New Zealand coloured. 465: white, 495. Australian, 45s and 48s. The butter market was firm and active a year ago. Danish was quoted at 120s; choicest salted Australian and New Zealand, 100s; unsalted, 2s premium. Cheese was in good demand. New Zealand white was quoted at 52s 6d; coloured, 53§ 6d; Australian, 51s and 52s 6d respectively. REPORTS FROM MERCHANTS CHEESE MARKET STEADIER Merchants have received the following reports, dated September 13, from their London principals:— Mr. L. McCartney, from Henry A. Lane and Company, Limited. —Butter: Fresh, 765; stored, 725. Tho market continues dull. Cheese: White, 47s to 47s 6d; coloured, 44s 6d to 455. The market is steadier. Mr. W. W. Bowker, from A. J. Mills and Company, Limited.—Butter: New Zealand, finest, 75s to 765; firsts, 745: unsalted, 86s; Danish, 104s; f.0.b., 82s: j Australian, 72s to 735. Cheese: New Zealand, white, 47s to 47s 6d; coloured, 44s to 44s 6d; Canadian, c.i.f., 47s to 48s. Both markets are slow. A. S. Paterson and Company, Limited, from J. and J. Lonsdale and Company (London), Limited. —Butter* Fresh landed, 75s to 765; stored, 72s to 735. The market is weak. CheeseWhite, 47s to 47s 6d; coloured. 455. The market is steadier. Dalgety and Company, Limited, from Samuel Page and Son, Limited. — Butter: New Zealand,.finest salted, 765: stored, 72s to 735; Danish, 104s; Australian, finest unsalted, 74s to 78s: finest salted, 71s to 725; general average quality, 70s. The market is weak. Cheese: New Zealand, white, 47s 6d to 48s; coloured, 44s 6d to 455; Canadian, white and coloured, 48s to 525. The market is slow. PRESSURE TO SELL CAUSE OF THE DECLINE IMPROVEMENT EXPECTED Extreme pressure to sell has been the immediate cause of the decline in prices for butter on the London market, according to the monthly survey of A. H. Turnbull and Company, Limited, Christchurch. The firm believes that once the pressure is relieved, buyers will again operate. Estimated arrivals of New Zealand dairy produce in the United Kingdom during September, October and November compare as follows with actual arrivals in previous seasons: —

Total tons .. 11,025 14,733 16,073 The firm comments: —"With total stocks of butter from all sources 700,000 boxes in excess of the quantity held in store at this time last year, it is not surprising to find a difficult market and in favour of buyers. A general opinion has been held for some time that prices would advance Bteadily up to the end of September, and consequently a good proportion of consigned butter has been held off the market. With the downward tendency which has recently shown itself, there has been a general desire to sell and this has accentuated the weakness. W. Wcddel and Company, Limited, cable that, although total stocks are heavy for the time of year, the actual stocks of New Zealand and Australian butter are not excessive, in view of the small shipments now afloat. The recent decline in prices they attribute to extreme pressure to sell, more especially at ports outside the London area, making buyers afraid to operate beyond immediate requirements. They consider that once this pressure is relieved, buyers will again operate and renew their stocks, which should result in 'better prices all round.

"Stocks of cheese in the United Kingdom are approximately 1000 tons more than at the same period last year. Weddel and Company cable that the demand is slow, and in view of the fact that cheese prices are comparatively very much higher than the prices for butter, they do not anticipate any improvement in the market

"There has been no activity in forward buying of either butter or cheese during the past few weeks."

Sep. 7 Sep. 14 Rise Fall Butter r s d 8 d e d s d New Zealand .. 78 6 76 0 — 2 6 Australia .. 75 0 72 6 2 6 Danish .. .. 110 0 104 0 6 0 Clippee: New Zealand— White .. .. 43 0 47 6 — 1 6 Coloured .. 45 6 45 6 , Canadian— White .. .. 50 0 50 0 — — Coloured .. 50 0 50 0 — —

BUTTER (in tons) 1932 1933 1934 September .. 7,729 7,900 6,679 October . 3,068 7,592 10,300 November . . 11,290 11,460 10,750 Total tons . . 22,087 26,952 27,729 CHEESE (in tons) September . 5,994 6,241 6,000 October . 1.G43 3,507 4,932 November . 3,388 4.935 6,140