PRICE OF BUTTER

New Zealand Herald, Volume LXXV, Issue 23010, 11 April 1938, Page 7

PRICE OF BUTTER

CAUSE OF RECENT FALL -—? OUTLOOK NOW FAVOURABLE SUPPLIES FROM CONTINENT [FROM OCR OWN correspondent] LONDON, March 23 A variety of factors appears to have caused the drop from 121s per cwt. ruling for New -Zealand butter last week to to-day's price of llos—Toole.y Street merchants think, however, that the drop is only temporary and will not go more than a few shillings further at the outside.

The wholesale price last week was unusually high for this timo of the year, and caused an equally high retail price of Is 3d per lb. This has hail the effect of increasing margarine •sales a little, but there are indications that, with the drop in wholesale butter prices, there will be a decrease of Id per lb. in retail rates shortly. It is also believed that the disturbed international situation kept prices up a little longer than was Warranted, with a consequent drop position eased.

"The supply position is quite sound and there is little accumulation of stocks," said one merchant to-day. "I do not think there is much likelihood of a further drop in wholesale prices in the near future."

The peak of the colonial supply has now been passed and prices will increasingly depend on quantities coining from the Continent. The outlook is favourable, as Germany is still buying considerable amounts from Denmark and there seems little likelihood of over-supply from Europe in the coming season. The remarkable period of fine weather that hae been experienced in the last few weeks may bring Continental supplies in earlier than usual. There are reports that very little butter will be available from Russia this season owing to steadily increasing consumption in that country. Austrian butter seems likely to be diverted henceforth to Germany, but imports from this source into Britain are not large. Supplies from Czechoslovakia have ceased in the past week and it is ' not known at present when there is likely to be a resumption of shipments.' In this case also, however, the quantities involved are small. 1 - The international situation is proving a most trying factor in foretelling . butter prices. One merchant said so many extraneous influences were operating that it was proving impossible to predict the position an hour ahead. FURTHER IMPROVEMENT RECOVERY OF NEW ZEALAND s (Received April 10. 5.5 p.m§ LONDON, April 0 The London market for butter is further improved. Recovering from the low levels ruling late in March and at the beginning of the current month, New Zealand butter in London showed marked improvement toward the close of last week. Quotations for . choicest salted were from 118s to 119s per cwt. and represented a rise of approximately 3s 6d per cwt. on the week. Current prices for New Zealand are . about 6s . 6d above the London landed equivalent of the guaranteed price, which is around 112s.

| FIRMER HIDE MARKET DEMAND FROM AMERICA EUROPEAN TANNERS ACTIVE Commenting on the firmer market for hides the latest report of W. Woddel and Company, Limited, London, states that oddly enough the American market has not yet shown much interest in River Plate selections, although the position is infinitely better. • "Xo gains have yet been made," the report states, "but- the undertone is most promising. It would not be surprising to see orders in thei*Plate for America at anv tinie ncm-. Nearly all the short-hairet hides have now been sold and if America does not decide to operate quickly there will be none.' European tanners have taken full advantage of the drop in prices within recent weeks, and although it is reported that tanners in most countries are well supplied, there is no reason why the steady demand should not continue. "One rather surprising feature has been the continued absence of English tanners from the South American markets. The Cabinet crisis in Britain seems to have entirely subsided with a victory to the Government, and this in itself" seemed to spread considerable optimism throughout the Stock Exchange, and on other commodity markets at any rate. Internationally the situation is by no means worse. If anv satisfactory terms can* be made for a general settlement of European unrest it will be all to the good. '