BUTTER RISES AGAIN

New Zealand Herald, Volume LXXIV, Issue 22853, 7 October 1937, Page 7

BUTTER RISES AGAIN

NEW ZEALAND UP TO 132/LONDON MARKET FIRM MARGIN ABOVE GUARANTEE Following active inquiry for butter in London, the price for choicest salted and unsalted New Zealand lias again advanced, and is now at the particularly high level of from 131s to 132s per cwt. This represents a rise of about 3s Gd since the close of last week, and the current value is the highest since 1930. This time last year the price was only about 101s to 102s per cwt.

A Press Association message sent from London on Tuesday states that the market is firm at the higher level. Danish is quoted at 140s per cwt., a rise of Is since last week. Australian at 13'ls to 132s per cut. shows an advance of about 4s. The basic rates fixed under the guaranteed price scheme, subject to quality differentials, arc 123s 8d for butter and 70s 4Jd for cheese per cwt., f.0.b., New Zealand currency. The equivalent landed prices in London are 112s for butter and 67s for cheese. The guaranteed price for butter is equal to 13.25(1 per lb., f.0.b., and the current London quotation is equivalent to approximately 15.77(1 per lb., f.0.b., New Zealand ports. The latest London quotation is therefore a full 2h\ per lb. above the guaranteed level.

A rise in London values is not unusual at this time of the year, but the present advance is considerably greater than previously. The following table shows the price of New Zealand and Danish butter in the first week of Octo-' ber of the past seven years, together with the premium of Danish:—

N.Z. Danish Premium l'er cwt. Per cwt. I'cr cwt. 1031 .. Ill)/- 130/- 17/1032 .. 110'- 'l2O/- I'W--1033 .. 100/- 117/- 17/1034 .. 00/ 100/- 37/-

1035 .. Ills/- VJ.VG 7/0 1030 .. 101/0 1 •_'( •/- 18/0 1037 .. 131/0 110/- 8/0

It will be seen that the value of New Zealand butter is considerably in excess of that in« previous years, and is almost double the low figure recorded in 1934. The premium of Danish has fluctuated considerably, but is now at a low level. The latest advance is a continuation of a strong upward movement which commenced about three weeks ago. MEAT FOR SERVICES BRITAIN'S LARGE PURCHASE ALMOST ALL FROM EMPIRE The British Secretary of State for War stated in reply to a question in the House of Commons recently that some 30.800.0001b. of fresh and frozen meat was purchased during the year ended March 31, 1937, for the Army and the Ho.val Air Force at Home. This, be said, was almost entirely of Empire origin. The public cold stores of Great Britain nave lately been agitating for closer attention on the part of the Government as a national resource against wartime emergency. They have suggested that the Government should consider devising a scheme by which military supplies and those for public institutions could be stored in bulk in the refrigerated depots all over the country, and thus be made to constitute an insurance against meat famine in time of extreme necessity. FELT AND TEXTILES BONUS DISTRIBUTION BASIS OF ONE FOR TWO (Received October G, 0.30 p.m.) SYDNEY, Oct. 6 The directors of Felt and Textiles, Australia, Limited, are offering to ordinary shareholders 178,927 ordinary £1 shares at par in the proportion of one for every two held ou October 21. The company was founded in 1921. pioneering the mannfacture of belted piece goods in Australia. It is now also operating in New Zealand and South Africa. The company's authorised capital is £1,000,000, of which £397,854 is paid up, in 40,000 preference and 357,851 ordinary shares. Quotations are granted to the ordinary shares only. The last sale of the £1 ordinary shares on the Auckland Stock Exchange-was made at £2 3s 4.{d, giving a return of £4 12s 3d. An interim dividend at the rate of 10 per cent per annum was paid on September 30.

SYDNEY WOOL SALES

GOOD COMPETITION LIMITED JAPANESE BUYING (Received October G, 0.30 p.m.) SYDNEY, Oct. 6 At the Sydney wool sales to-day 12.028 hales were offered and 9190 were sold, including 1630 privately. There was good competition from the Continent and Yorkshire, but only limited support from Japan. Values for better class fleece wools and average to good broken were on a par with earlier in the week. American operators purchased the best fleece descriptions. Greasy Merino made 22Jcl.

SOUTH AFRICAN WOOL

AGREEMENT WITH GERMANY

Very good prospects for the South African wool season were referred to |)v Mr. T. Havenga, the South African Minister of Finance, speaking at the opening of an agricultural show in Cape Province recently. , Onlv last week, Mr. Havenga said, ho had signed" an agreement which would enable Germany to purchase wool to the value of £3,'250,000 under the clearing agreement. The Union Government was also endeavouring to retain the interest of .Japan in the purchase ot South African wool.

BUTTER BOX SHORTAGE

IMPORTATION NECESSARY As a precaution against the possibility of a shortage of butter boxes at a later stage in the season, the Dairy Hoard has decided, subject to Ministerial approval, to import a minimum of 500.000 boxes for delivery not later than the first week in Decetnbei. Mr. A. R. Kntrican. of the Forestry Department, brought before the board the difficulties in supplying sufficient quantities of fully-seasoned timber ioi butter boxes up to the end of December. and discussed the question °< ' nl ~ portation of approximately one-twe.lltli of the season's requirements, to meet the situation. The board expressed concorn as to thf position outlined, and was of the opinion that the necessai.v importation to safeguard the position should Lio made.