PRICE OF BUTTER

New Zealand Herald, Volume LXXV, Issue 22988, 16 March 1938, Page 9

PRICE OF BUTTER

DRASTIC FALL UNLIKELY OPINION IN TOOLEY STREET SUPPLIES BOUGHT FOR CANADA [from OUR OWN correspondent] LONDON, Feb. 23 Tooley Street merchants are of the opinion that as a price in excess of the guaranteed rate is ruling for New Zealand butter at this stage of the season there is unlikely to be any drastic fall ahead. Explaining the recent rise to 116s, a merchant' said today that 10 days ago visible stocks in the United Kingdom were sufficient for ojily about four days' consumption.

Foot-and-mouth disease on the Continent, drought in South Africa, which had made that country an importer instead of an exporter, and consistent buying by Germany - were given as some of the reasons why prices today are about 32s per cwt. higher than at the same time last year. Another merchant considered the chief reason for the higher prices was the increased spending power of the people. He pointed out that in addition to consignments to Germany and direct shipments from New Zealand to Canada, orders from Canada for limited quantities of New Zealand butter had been executed in London at 115s per cwt. during the past few days. There was a diversity of opinion whether prices would advance or recede, he said, but as the flush of the Australian season was now past and exports from there were being restricted to 2000 tons a week, it was reasonable to expect that supplies would hardly be more than sufficient to meet the demand. He anticipated that prices would range from 112s up to 118s or 120s during the next few months.

Since the experience of last year, when high retail prices brought a drastic curtailment in consumption, there was a tendency to keep the wholesale price to a level which allowed the ready sale of butter over the counter at about Is 2d per lb. All, indications were for a fairly high level of prices, without much likelihood of the peak figures of last season being approached. ' .$> FIRM LONDON MARKET BOARD'S DETAILED REPORT Store stocks of New Zealand butter in London remain fairly high. The total held at the end of last week was 5289 tons, a decline of 294 tons over the figures for the previous week, which were the highest for some time past, and a rise of 47 tons over the stocks held at the same time last year. The market opened firm, but was quieter toward the middle of the week. It closed firm and active on available short supplies. The New Zealaud retail price was unchanged at Is 2d per lb.

By arrangement with the Primary Products Marketing Department the New Zealand Dairy Board supplies the following information for the week ended March 12, figures for the previous week being given in parentheses;—•

Butter. —New Zealand, salted, 118s to 119s (116s); unsalted. 119s-to 120s

(117s to 118s). Deliveries: New Zealand, 2373 tons (last year 2606 tons); in store, 5289 tons (last year, 5242 tons). Australian, salted, USs to 119s (llos to 116s); unsalted, 119s to 120s (116s). Deliveries: Australian, 2223 tons - (last year, 1348 tons); in store, 2748 tons (last year, 4151 tons). Danish, 102s, f.0.b., 124u spot (102s to 1245). Market steady. Lithuanian, unsalted, 118s (116s); Dutch, unsalted, 116s to 118s (116s). The market is firm. Danish retail price, unchanged, Is' 3d. . .

Cheese. —New Zealand, white and coloured, 68s 6d to 695, ex. 69s 6d (67s 6d to 6Ss). Deliveries: New Zealand, 17,585 crates (last year, 19,154 crates); in store. 54.896 crates (last year, 60,088 crates). New Zealand retail price, unchanged, 9d. Australian, white and coloured. 67s to 67s 6d (65s to 66s and 675). Canadian, white. 75« to 77s (75s to 765); coloured, 76s to 78s (76s to 775). Deliveries: Canadian, 6520 boxes (last year. 3530 boxes) ; in store, 84.464 boxes (last year. 82.301 boxes). The market is firm. English, finest farmers', 96s to 98s (90s to €Bs>. The market is steady.

QUOTATIONS FOR WHEAT LONDON AND LIVERPOOL FUTURES IN CHICAGO LONDON, March 14 Wheat.—Cargoes are easier and parcels also are easier. Futures:—London: March, 42s 2d a quarter; Mar, 40s 9d. Liverpool: March, 7s; Id a cental; May, 7s o|d; July, 6s lOjd. CHICAGO. March 14 Wheat.—-May, 85J cents n bushel; July, 82J cents; September, 821 cents.