BUTTER AT 112/-

New Zealand Herald, Volume LXXII, Issue 22211, 11 September 1935, Page 12

BUTTER AT 112/-

SHARP RISE IN MARKET HIGHEST FOR THREE YEARS FORWARD SALES ADVANCE GAIN TO AUCKLAND PROVINCE A strong rise in the London butter market over the week-end lifted prices for New Zealand by 5s to 112s per cwt., a gain of 12s within a week. The advance exceeds any recorded within a similar period for several years. The peak price in the spring of 1933 has now been passed, and the current quotation is within measurable distance of the top price of 116s per cwt., in late September, 1932. Quotations for cheese also have advanced, the latest price being 2s higher at 54s per cwt. Both markets are firm, according to a cablegram received by Joseph Nathan and Company, Limited, from Trengrouse and Nathan, Limited, under date September 9. Simultaneously with the rise in the spot market, buyers have advanced their offers for forward shipment. Butter for shipment up to September 17 was bought yesterday at Is per lb., f.0.b., the highest price for yea?s, and equal to 102s per cwt. London. Sales for shipment up to October 1 were made at ll|d and ll£d per lb. and for shipment to October 18 at 113 d. These prices mean, in effect, that buyers are paying the equivalent of over 95s per cwt. for butter which will not arrive in London until the middle of November. At that time last year New Zealand butter was selling ai 75s per cwt. Smaller Continental Supply The buoyancy in the London butter market is a reflection largely of the decline in Continental supplies during the Northern Hemisphere spring and summer months. Arrivals of European butters in England during the flush of tho Northern season were lower than in the previous season, with the result that stocks did not accumulate to any extent. At the end of August last year stocks of all butters in London were estimated at about 45,000 tons, but at the same date this year only 27,000 tons were held. In addition, lighter shipments have been arriving from the Southern Hemisphere producers. Stocks of New Zealand and Australian butters in store in London at the end of last week totalled 7656 tons, compared with 19,326 tons held at this time last year. Australia's Backward Spring A backward spring in Australia has delayed early shipments of butter considerably, and the export is several thousand tons below last year. The latest advices received are to the effect that beneficial rains have been experienced, and that production is now recovering. However, until supplies from New Zealand and Australia reach the flush, it is likely that the London market will retain its buoyancy. It is evident that there is a better feeling in the market than for several years. At this time last year butter was selling at about 78s per cwt., and the outlook was anything but cheerful. If average prices for the season can be maintained at even 10s per cwt. above last year, it will mean an extra £1,500,000 in the pockets of the producers in the Auckland Province.

WELLINGTON RETAIL PRICE p ADVANCE TO IS 3*D PER LB. r [BT TELEGRAPH —PRESS ASSOCIATION*] WELLINGTON, Tuesday For the second time within a few days the wholesale price of butter on the Wellington market has been advanced by Id a pound. The new price takes effect to-morrow and raises the retail price to Is a pound.