WEAKNESS IN BUTTER

New Zealand Herald, Volume LXXIII, Issue 22544, 8 October 1936, Page 7

WEAKNESS IN BUTTER

NEW ZEALAND AT 100/I AUSTRALIAN PREMIUM SHORTAGE OF SUPPLIES Weakness has again developed in the London butter market and the price of Now Zealand finest is quoted approximately -'is (3d lower at 100s per cwt., equal to 11.7Gd |>er Hi. The firming in the market last week following greater activity and tlio purchase of a substantial parcel of Continental butter for America gave riso to hopes of some recovery and no explanation is forthcoming of the present unfavourable influences. The buttor now being sold in London was shipped prior to tho inauguration of State marketing. A roport from A. »S. I'aterson and Company, Limited, states that so far tho reaction in prices which was looked for and which actually did take place to a limited extent has not proved a very strong one. This recent falling back is not calculated to inspire a very great deal of confidence in the return of prices to anything like tho level of 110s to 120s which was ruling during tho latter part of August and early in September. Australia and Dominion It is notable that for the past week Australian butter has been quoted at a premium on New Zealand. This has occurred on rare occasions in the past few seasons. Years ago New Zealand enjoyed a substantial premium on the produce of Australia, but in recent times, with the growth of Australian competition and the improvement in tho quality of its butter, the margin has been narrowed considerably. Usually, however, New Zealand sells at about 2s above Australian.

Tho present position is probably accounted for by a shortage of Australian butter in London. At tho end of last week, Australia had only 785 tons in store, compared with New Zealand's 5274 tons. For the same week, Australian deliveries were 785 tons. On that basis there was barely sufficient Australian butter for a week's supply, and in the absence of an early arrival it is quite natural that the market would hold for a higher price. Outlook Encouraging

Fundamentally, the outlook in tho market is encouraging. America is short of butter and her recent purchases indicate that supplies are necessary from outside. This will help to relieve the London market. Furthermore, tho results of the devaluation of currencies of tho three leading gold standard countries cannot bo over-rated. It has been shown elsewhere how ultimately this will engender freer trade and thus bring greater prosperity. Before tho existing trade barriers were erected, New Zealand, by re-exports from Lon : don, enjoyed a large trade on the Continent and the restoration of this market would have a favourable effect on London prices. Tho possibilities of tho French market alone are indicated in the fart that in 1935 France's imports of butter 101 l to the record low level of 674 tons, against 4287 tons in 1934 and 18,230 tons in 1931, which was the peak year. Merchants have received the following cablegrams, dated October 6, from their London principals:— A. H. Turn bull and Company, Limited, from W. Weddell and Company, Limited. —Butter: Danish, 1245; New Zealand, salted, 100s; Australian, 101s. Cheese: New Zealand, white, 70s; coloured, 665. Both markets are depressed. A. S. Patcrson and Company, Limited, from J. and J. Lonsdale and Company (London), Limited.—Butter: Now Zealand, salted, 100s to 101s. lhe market is Very quiet.

NORTHERN INVESTMENT DIVIDEND MAINTAINED The directors of tho Northern Investment Trust, Limited, havo declared an interim dividend of 3} per cent on ordinary shares and the usual 2i per cent on preference shares for the haltyear ended September 30. Payment will be made on October 15. The last lull year's dividend ou ordinary shares was 7 per cent. MACKY, LOGAN, CALDWELL SAME INTERIM DIVIDEND An interim dividend at the unchanged rate of 5 per cent per annum, for tlio half-year ended August 19, has been declared by tho directors of Mack.v, Logan, Caldwell, Limited. Payment will be mado on November 20. DAVID JONES, LIMITED YEAR'S RECORD TURNOVER A net profit of £116,150, against £121,780 in tho previous year, was earned by David Jones, Limited, retailers, Sydney, for tho year ended July 31. Ordinary dividend is unchanged at 10 per cent, requiring £60,000. Dividends on the 6 per cent and 7i per cent preference shares together require £27,750. Theso payments leave,£sß,loo of the profit available, out of which the directors set aside a further £IO,OOO for tho staff superannuation fund. The turnover for the year reached a new high level in tlio history of tho company.

WOOL* TEXTILE MERGER FOUR BRITISH COMPANIES LONDON, Oct. 0 An important wool textile merger is announced. Salts (Saltairc), Limited, has purchased tho share capital of Pepper, Lee and Company, Limited. Wike Mills Company, Limited, and Popplewell and Jngham. The business will bo run as heretofore. It is expected that fusion will avoid overlapping and no doubt result in considerable economies. MOUNT LYELL SHARES LONDON, Oct. a On tho mining-maiket to-day Mount Lyells bold at 4s OJd. CALL AND DIVIDEND LIST Dividends — Due Amulcainalcd Zinc (Do Bavays), Ltd.—half-yearly, 5 p.c. p.a. .. .. ' . . To-mnrrow Milne and Choyce—ord. and deb. stock, 4 p.c. .. . . Oct. 10 Farmers' Auct. —pref., 5 p.c.; ord., 4Va p.c. . . .. Oct. 10 Amalgamated Wireless—final, G p.c. and 1 p.c. bonus .. Oct. 12 Mataki—ld a share .. .. Oct. 14 G. J. Coles —ord., quarterly, 2y 3 p.c. .. .. .. Oct. 15 Northern Investment—int., ord., 3% p.c.; prof., 2 1 /J p.c. .. Oqt. 15 South British—final, is 4d a share .. .. .. Oct. 22 Martha —interim, Is a share (English currency) . . Nov. 3 Macky, Logan, Caldwell —int., 5 p.c. p.a. .. .. Nov. 20 Call— Skippers, Ltd.—pref., 3d a share, making 8d paid ... .. Oct. IB