RISE IN BUTTER

New Zealand Herald, Volume LXXV, Issue 23073, 25 June 1938, Page 11

RISE IN BUTTER

NEW ZEALAND AT 124/-

ADVANCE OF 4/- ON WEEK

CHEESE MARKET FIRMER Although the market is quiet, prices for New Zealand butter in London show a marked advance on the rates . ruling at the close of last week. Choicest salted New Zealand at. 121s per cwt. has advanced. 4s on the week, end a similar rise is shown in prices for Australian butters. Danish at 125s to 126s is 2s 6d higher. Store stocks of New Zealand butter last week showed a marked advance, but the retail prices evidently have had some effect in strengthening the market. Cheese also is firmer, current rates representing a rise of Is 9d per cwt. on the week. A Press Association message sent from London ou Thursday states that butter is quiet. Danish is quoted at 12-js to choicest salted New Zealand, 121s; Australian, 1225; unsalted, New Zealand, 124s to 1255; Australian, 1235. Cheese is firm. New Zealand, white and coloured, 695; Australian, 67s 6d to 68s. Recent quotations and those of % year ago compare as follows: — J ine 01 June 17 May 27 June 25 103b 1S»0S IW3B 1937 Butter — New Zealand 124/- 120/- 1.2.V- 109/3 Australian . 122,'- US'- 122/> 10 £/• Danish . . 12.VG 123/- 121/- 114/C'heese—N.Z.: ■White .. <!»/- 67/3 70/- 74/Coloured .. 09/- 67/3 70/- 73/» Canadian: , , .&>. White . . 67/3 79/- 77/6 70/- # | Coloured .. 65/6 79/- 78/- 79/The basic rates fixed tinder the Nev Zealand guaranteed price scheme, subject to quality differentials, are 123s 8d for butter and 70s 4}d for per cwt.. f.0.b., New Zealand The equivalent landed price for butter in London is 112s end for cheese 675. The guaranteed price for butter is equal to 13.20 d per lb. f.0.b., and the current London quotation is equal to 14.8 id, New Zealand ports. The equivalent price for cheese is around 7.(51(1 per lb. f.0.b., compared with the guaranteed price of 7.54 d. A. S. Paterson and Company. Limited, quote:—Butter: The market i* steady. New Zealand, 123s to 124s per cwt.; Australian. 121s to 1225. Danish: The market is firm at 1265. Cheese: The market is firm. New Zealand, 61X3 per cwt. i iS WORLD WHEAT ANNUAL TRADE REVIEW CROPS AND MARKETS OUTLOOK FOR FUTURE (Received June 24, G. 5 p.m.) British Wireless RUGBY, June 23 The Imperial Economic Committee's annual review of grain crops shows how rapidly conditions in the world market for wheat have changed in recent years. The world's visible stocks of wheat . totalled more than 32.000,000 tons at g.. the end of the 1933-34 season. From i i then, they had been so much diminished r bv August, 1937, that the total, 14,250,000 tons, was the smallest figure [ for more than 10 years. Prices rose sharply during 1936-o7i - with the fall in supplies, and farmers t throughout the world sowed an appreci- [ ably larger area with wheat for the 1937-38 crop than in the previous season. Though there was no proportional ? increase iu the world production of a wheat, excluding Russia and China, 1 nevertheless the harvest was larger than e in any of the three preceding seasons.; t Consequently- stocks this August are exv pected to show an increase of some 2,000,000 tons over last year, Tjiueh of this increase occurring in_ America, where the wheat crop in 1937 was big-, ger than any harvest since 1931. Recent Changes in the Trade, Stocks in Canada and the Argentine are not likely to differ much from the totals recorded in August, 1937, for in both countries the last crop was small as' the result of drought and frost damage respectively. Tlie review describes recent changes iu the wheat trade of the principal countries. America, having, bountiful supplies in the current 193i-38 season, c has resumed its old position as a wheat j. exporter, whereas last year it was importing heavily. Russia has increased r its exports, while Australia also has t larger supplies available. On the other hand, both Canada and 1 Argentina have only small exportable _ surpluses , . j World Crop May Exceed Demand As to the future position, the review draws attention to the fact that '* in few parts of the world has there been e any indication that the area devoted > to wheat for the 1938-39 crop will be 0 substantially reduced as compared with the last sowings. Since last autumn the e price of wheat has shown a downward i- trend, and recently the decline has been s rapid, owing very largely to the prosn pect of a bumper harvest in America , this year. d It is too early yet to judge what the i- final out-turn will be, but it seems that t the world crop, providing the har- - n vests are normal, may be substantially larger than the demand, even if the r European demand is assisted by Governo meat purchases to build up reserves of jt wheat against possible emergency needs.;