BUTTER MARKET QUIET

New Zealand Herald, Volume LXXIII, Issue 22523, 14 September 1936, Page 5

BUTTER MARKET QUIET

PRICES SLIGHTLY HIGHER POOR AMERICAN DEMAND TOOLEY STREET PESSIMISM London prices for New Zealand butter are a shade higher, choicest salted « selling up to 110s per cwt. Cheese values are practically unchanged at up to 69s per cwt. for white and up to 67s for coloured. Both markets are quiet. A Press Association message Bent from London on Saturday states that there has been an unexpected collapse in the butter market. Tooley Street, merchants gloomily incline to the belief that the market has not yet touched bottom. Operators are definitely nervous, especially as they recall that prices went to pieces in October, 1930. One of the few props of the market has been the prospect of American inquiry, owing to the drought having affected production there, but so far only a few odd shipments have materialised. Continental varieties also are depressed, though Danish has been pegged for the last few weeks. Some dealers are hopeful of a slight improvement when huyers regain confidence, but none goes so far as to predict recovery to any marked extent. Cheese is affected by the weakness of butter, hut the position is statistically sound in tone. Merchants have received the following cablegrams, dated September 11, from their London principals; — A. H. Turnbull and Company, Limited. from W.' Weddel and Company, Limited:- —Butter: Danish, 128s; New Zealand, salted, 110s; Australian, 109s. Cheese: "White, '69s; coloured, 675. Both markets are quiet. Allen and Findlay, Limited, from Armour and Company, Limited.—Butter: The market is quiet. New Zealand, salted, 108s to 110s; unsalted, 109s; Australian, 109s; Danish, 1275. Cheese: The market is quiet. New Zealand, white, 68s to 695; coloured, 66s to 675; Canadian, 71s 6d. DECLINE IN PRICES VARIETY OF CAUSES FUTURE POSITION DOUBTFUL Dealing with the recent sharp decline . in quotations W. Weddel and Company, Limited, in a cablegram received by A. H. Turnbull and Company, Limited, state that this was caused by a number of circumstances. The arrivals from New Zealand show a substantial increase over the last two years, but with a fairly sound stock position in the United Kingdom, this alone would not have affected the market, but added to this is a very heavy influx of Continental butters. According to the Imperial Economic Committee's report, stocks of butter from all sources at the end of August were 24.800 tons, as against 26,600 tons last year. For the fortnight ending September 9, in place of the usual decline in stocks, there is a slight increase. Again, higher prices have as usual curtailed the consumption. The principal factor, however, can be found in the advice that the trade as a whole has been anticipating a strong buying demand from America which has not eventuated. Buyers immediately remembered similar circumstances last year and the slump in values which followed, and became distinctly nervous, operating only from hand to mouth, some cablegrams even describing the market as demoralised. The future is too difficult . to forecast, but now that the market has steadied it is hoped that the usual recovery may follow. Cheese has, as usual, followed closely the course of the butter market, rising steadily throughout August, with only „ a slight easing for the first week of' v '' : September. Although the stock position of cheese is still very sound, with estimated arrivals for September to November about equal to last year, W Weddel and Compan.y, Limited, state that the future of cheese is very difficult to forecast as it is invariabb dominated by the butter market.