LOW BUTTER PRICES

New Zealand Herald, Volume LXXI, Issue 21911, 21 September 1934, Page 14

LOW BUTTER PRICES

NO IMPROVEMENT SHOWN INCREASE IN SUPPLIES COMPARISON WITH LAST YEAR Prices for butter on the London market during recent weeks have been most discouraging, and the latest reports reveal no improvement in the position. New Zealand, including stored, is selling a shade cheaper at 72s to 74s per cwt., while at this time last vear prices were almost 110s per cwt., the peak level for the year. Business is at a standstill, according to one report received yesterday.

Forward buying in the Dominion has been practically suspended, there being few if any f.o.b. offers quoted by English, importing firms. Inactivity in this market coincided with tho operation of the new marketing proposals of the Dairy Produce Board, but in tho opinion of agents there is no connection between the two factors. They state that buyers are cautious owing to tho uncertain outlook.

Market influences at this time last year were entirely different from those at present operating. Australia released its stored stocks of butter very early in 1933, and an acute shortage in its export butter occurred about this time owing to dry weather conditions in tho winter and early spring. However, the weather position was relieved and Australian exports for the whole of the 1933-34 season exceeded those of the previous season. Good rains were experienced in the Commonwealth dairying districts during the past month and the spring production substantially exceeds that of 1933. Australia h'as now had about four good seasons in succession, a most unusual run of good fortune.

The other major cause for the present stagnation in the market is the flood of European supplies normally absorbed by Germany. During the first seven months of 1934, imports into Groat Britain of European butter rose by 2J per cent over the corresponding period last year, Empire countries for the Bapo period increasing their exports by 17 per cent. Of the total increase of 476,000cwt. in Continental supplies, Russia accounted for 47,000c\vt., Denmark 82,000cwt., Sweden 95,000cwt., Holland 81,000cwt., and Poland 29,000 cwt. All these countries have some form of Government assistance. Estimated stocks of all butter in England on September 7 were 893,823 cwt., compardd with 500,168cwt. last year. Stocks of New Zealand and Australian butter in store on September 14 tyere 343,240cwt., against 157,900cwt. REPORTS FROM MERCHANTS DETAILS OF QUOTATIONS Merchants have received the following cablegrams from their London houses, dated September 19:— New Zealand Loan and Mercantile Agency Company, Limited.—Butter, including stored, 72s to 745. a standstill. Cheese: White, 475; coloured, 455. Market plow. Joseph Nathan and Company, from Trengrouse and Nathan. —Butter: Slow, 745. A. H. Tnrnbidl and Companv, from Weddel and Company.—Butter: Danish, 103s to 104s; New Zealand, salted, 745; stored, 725; Australian, 71s to 735. Cheese: White, 47s to 47s 6d; coloured, 45s 6d to 465. Both markets are quiet.