FALL IN BUTTER

New Zealand Herald, Volume LXXIII, Issue 22532, 24 September 1936, Page 12

FALL IN BUTTER

FINEST AT 100/EQUIVALENT 11.76 D F. 0.8.. LOSS ON GUARANTEE SHIPMENTS SOON TO ARRIVE Weakness in the London butter market has developed seriously during the past week and current quotations for New Zealand butter at 100s per cwt. for finest are the lowest since the end of May; Cheese has declined in sympathy with butter and both markets are reported as slow. At this period of the year when tho weight of new season's butter from the Southern Hemisphere is in sight a seasonal decline is normal, but in recent months the market had responded so encouragingly to favourable influences that a rapid collapse was hardly expected. Autumn production of butter on the Continent, however, proved hotter than anticipated, and in the absence of the expected large-scale purchases by America the market has become distinctly nervous. A further lack of confidence in the forward position is indicated by the reports received in Auckland that Baltic butters are now being offered to America at extremely low levels. A New Significance The fall in the market has a changed significance this season. It has occurred just prior to the arrival at Home of supplies exported through the Marketing Department under the Government's guaranteed price scheme. For this butter the basic guaranteed price to the industry is 12.5655 d per lb. The current London price, is 100b per cwt., which is equivalent to 11.76 d per lb., f.0.b., a difference of 0.8025 d per lb., to which extent t/e industry will benefit under the Government's scheme. The first shipment of butter from Auckland to reach London under the scheme will be that of the Port Hunter, which is due on October 12 with 64,956 boxes of butter, including 55,976 from Auckland. On this shipment alone the difference between the basic guaranteed price and the present market price represents a gain to the farmers of over £IO,OOO. The Port Hunter will be followed by the Cambridge, which is due at West Coast of England ports on October 26 with 55,611 boxes of butter from Dominion ports. The Cheese Position The current quotations for cheese range from 65s to 675, This is equivalent to 7id f.0.b., against the guarantee of 6 13-18 d. A year ago prices for butter stood at 114s per cwt., but a similar collapse occurred later. Following a rise to 1275, which was reached on October 16, 1935, values declined steadily to 99s in the second week in November and thereafter remained around 80s to 90s over the flush of the season. As the supply fell away prices again advanced, reaching 100s at the end of May last. From then on the market advanced strongly until the peak was reached last month at 1225, brought about by lower stocks and the improved purchasing power of the consuming public. .• - • The following quotations have been received by A. H. Turnbull and Company from W. Weddel and Company. Limited, d'lted September 22 : —Butter; Danish, 1235; New Zealand, salted, 100s; Australian, 100s. Cheese, New Zealand, white, 675; coloured, 65a. Both markets are slow. SHORTER WORKING WEEK POST OFFICE EMPLOYEES APPRECIATION OF ACTION r [BY TELEGRAPH —PRESS ASSOCIATION] WELLINGTON. Wednesday The Dominion executive of the Post and Telegraph Association, which is now in session, has conveyed to the Prime Minister, the lit. Hon. M. J. Savage, an expression of the appreciation of members of the service of the Government's action in applying the principle of the 40-hour week to the department, which, it is stated, will ensure the employment of a number of those at present unemployed.