BUTTER MARKET QUIET

New Zealand Herald, Volume LXXIII, Issue 22346, 18 February 1936, Page 7

BUTTER MARKET QUIET

NO CHANGE IN PRICES RECENT RISE IN DANISH LARGER GERMAN PURCHASES The London market for New Zealand butter closed last -week at 95s per cwt., unchanged. Prices for cheese were a shade easier at 52s 6d to 53s per cwt. for white, and 57s for coloured. Both markets are very quiet, according to a cablegram, dated February 15, received by Joseph Nathan and Company, Limited, from Trengrouse and Nathan, Limited. Prices for New Zealand butter have been fairly steady during the past two weeks, but Danish prices have increased from 116s to 12&s. The retail price of Danish lias advanced from Is 2d to Is 3d per lb, New Zealand being unchanged at Is.

The firming in Danish is due to an agreement reached with Germany, providing for the admittance into Germany of larger quantities of Danish butter in return for puchases by Denmark of German manufactures. It is stated that the increased amount of butter that will bo taken by Germany will be 12,000 tons a year. This is 50 per cent more than the normal exports. It is expected that the production of Danish butter will be higher this year than the average, but the new agreement with Germany will tend to reduce the pressure of Danish supplies on the British market, and thus benefit Australian and New Zealand producers. DISPARITY IN PRICES NO ADJUSTMENT LIKELY LONDON, Feb. 16 Butter is comparatively quiet and stable. Danish at present is at a high premium over the Dominions' product owing to heavy German purchases from Denmark. Traders admit, in view of the high price of Danish, that the present prices of Dominion butter look absurd, but they do not expect any substantial alteration. Inquiries from the North of England for New Zealand and Australian are increasing owing to the dearness of Danish. Cheese is uninteresting. Eggs are substantially dearer owing to the cold weather .throughout Europe, but few Australians are available. The New Zealand and Australian Dairy Boards' propaganda is having excellent results. « PRODUCT IN AMERICA COLD CAUSES SCARCITY OPENING FOR NEW ZEALAND (Received February 17, 5.5 p.m.) LONDON, Feb. 16 The Daily Mail's commercial writer, referring to the rise in American butter prices because of the scarcity due to the cold-wave, says the rise of a few cents is more than sufficient to show a fair margin of profit in sending New Zealand butter to America from Britain. If the weather continues cold in America such exports are likely. Under the circumstances, it is more likely that butter will be shipped from London to New York than from New Zealand, as arrangements can be made and parcels despatched more quickly. Early in February last year there was .considerable buying of New Zealand butter on New York account, due to a shortage of local supplies, but very little business has been done this year.

WOOL IN SYDNEY NEW SEASON'S RECORD 33£ D PER LB. FOR MERINO (Received February 17, 9.45 p.m.) SYDNEY. Feb. 17 At the Sydney wool sales to-day a new season's record price for the Sydney market of 33id per lb. was obtained for five bales of greasy Merino. Altogether, 10,590 bales were offered and 9580 were sold; also 2318 bales were disposed of privately. The market was equal to last week's best. Full clearances were made, competition being very keen and general. The average prices last week were £l9 4s 6d a bale and 16.1 d per lb.

AUSTRALIAN CHEQUE LARGE INCREASE SHOWN The Australian wool cheque for the season to elate is £31,581,441, an increase of £11,968,174 on the total for the corresponding period of the previous season. The National Council of Woolsolling Brokers of Australia reports that, while the clip is moving into consumption with unusual Vapidity, the financial returns aro satisfactory. Greasy wool sold during January averaged 15.36 d per lb. and £lB 15s 5d a bale. The total amount realised during the month for all wool (greasy and scoured) sold was £6,454,822. The following table shows the total realisations for all wool sold from July to January in the seasons 1931-32 to 1935-36: Bales Amount Average gold realised a bale 1981-32 . . 1,007,573 £ 18,382,023 £ll 7 5 1932-33 .. 1,752,353 20,108,707 11 710 1933-34 .. 1,558,008 37,417,133 19 19 7 1934-35 .. 1,560,064 19,595,267 12 9 1 1935-36 .. 1,816,467 31,581.441 17 6 5 From July 1 last to January 31 receipts into store amounted to 2,439,608, bales, making, with tho 90,747 bales which were carried over from the previous season, a total available for disposal of 2,530,355 bales. Sales during the same period totalled 1,816,467 bales, or 71.78 per cent of the total available. In the same period of last season tho proportion of sales to receipts (including carry-over) was 58 per cent, Owing to climatic conditions, and under the stimulus of a favourable market, shearing in many cases was completed much earlier than usual. Consequently receipts into store during the later months of the season are showing some decline.

The receipts during January of this year wero 63,149 bales, compared with 82,762 bales in January last year. All States showed a decrease for the month, the most noticeable being Queensland, 8176t, bales, Victoria, 4930 bales, and Western Australia, 3429 bales. The decline in the average weight a bale continues to be very marked. Over the seven months the average weight of greasy wool sold this season was 3U2.uilb.,- which, compared with the weight of 311.291b. for the correspondof last season, shows a decrease of 9.281b.