BUTTER STEADIER

New Zealand Herald, Volume LXXV, Issue 23082, 6 July 1938, Page 9

BUTTER STEADIER

INCREASE IN STOCKS MORE CONTINENTAL SUPPLIES AUSTRALIAN EXPORTS RAISED Although the market for butter in London closed last week on an easier note prices for New Zealand have steadied around 123s per cwt., with an exceptional quotation of 12lf>. The current price compares with 109s per cwt. a year ago, and l()7s j>er cwt. in early July, 1936. Competition from a larger quantity of Continental butter is now influencing tlm market, but prices for the Now Zealand produce normally rise at this period of the year. It is believed, however, that as a result of the regulation ol shipments a considerable amount of produce from New Zealand has yet to bo marketed which will have the effect of steadying the seasonal rise. Australia also is releasing a larger quantity of butter for export. A recent decision of the Australian Dairy Produce Board raised the weekly export quota to the United Kingdom from 800 tons to 1000 tons, as from the end of this week. Stocks of New Zealand butter have risen over the past week to 4974 tons from 4852 tons as at June 25. A year ago stocks in store in London stood at 62-13 tons.

B,v arrangement with the Primary Products Marketing Department, the New Zealand Dairy Board supplies the following information for the week ended July 2, figures for the previous week being given in parentheses:— Butter. —New Zealand, salted, 1235, exceptionally, 124s (1245); nil sal ted, 124s to 125s (124s to 1255). Deliveries: New Zealand. 1329 tons (last year, 1841 tons); in store, 4974 tons (last year, 6243 tons). Australian, salted, 121s, exceptionally, ]22s (121s to 1225); unsaltod, 122s to 123s (1235). Deliveries: Australian, 1028 tons (last year, 1228 tons); in store, 5259 tons (last year, 6149 tons). Danish, 10.'5s f.0.b., 124s to 125s spot (105s; 125s to 1265). Dutch, unsalted, 113s to 114s, exceptionally, 118s (114s to 115s). Polish, salted, 113s to 114s (—); unsalted,. 112s (—). The market is quiet, and prices slightly easier at the close. Retail prices are unchanged; New Zealand, Is 3d; Danish, Is 3d.

Choose;—New Zealand: White and coloured, GBs to 68s 6d (68s 6d to 695). Deliveries: New Zealand, 20,346" crates (last year, 21/162 crates); in store, 71,048 crates (last year, 62,022 crates), Australian: White and coloured, 65s to 67s (65s to 67s 6d). Canadian: White and coloured, 78s to 80s (78s to 80s); c.i.f., 68s 6d to 69s (67s to 68s). Deliveries: Canadian, 4790 boxes (last year, .'3OBB boxes); in store, 67,472 boxes (last year, 59.353 boxes). English factory cheese, 65s 6d (665).

INTEREST RATES HIGHER TREND SEEN CHANGE IN AUSTRALIA Based upon the excellent returns from wool and other products during the previous season, Australia passed through a period of activity in 193738, states the latest issue of the Australian Insurance and Banking Record. The most important individual item was the higher level of prices for wool in 1936-37. Since then, however, a change had occurred. Recently it had become apparent, adds the journal, that the impetus gained in 1936-37 had spent its force, and that with lower prices for wool and wheat the basis for trading and other forms of activity during the new financial year would be narrower in proportion.

As on former occasions, the effect of tho favourable results of the 1936-37 season was to produce a condition of ease, with full supplies of money both locally and in the form of London funds. The decline in local interest rates early last year, had been followed recently by some tightening in the position as between the demand and supply of money, and in some cases higher rates. Between this and the tendency to a strictor control over advances, the course followed was calculated to adjust tho position in accordance with the change in underlying conditions.

STATISTICAL SUMMARY RESERVE BANK PUBLICATION The publication of a monthly statistical summary has been undertaken by the Reserve Bank of New Zealand and the first number, dated June, has just been issued. The summary is on similar lines to that regularly issued by the Common Bank of Australia relating to Australian conditions and offers a valuable economic record. Some of the statistics included arc not available from other records and in this respect a classification of trading banks' advances is most interesting. In addition to a wealth of banking information other statistical tables deal with tho yields on Government securities in New Zealand, Australia and Britain, Government revenue and expenditure, and overseas trade. Finally price index numbers for New Zealand, Australia and the United Kingdom provide an informative record of the fluctuations in wholesale and retail prices over a period of years. The subscription is 12s a year.

BREWERY COMBINE SOUTH AUSTRALIAN COMPANIES Tho South Australian Brewing Company, Limited, has agreed to take over the whole undertaking of tho Walkerville Co-operative Brewing Company, Limited, for 122,089 shares in the company, to rank for dividend from September 1, 1938. Tho agreement is subject to ratification by the shareholders of Walkerville Brewing Company, Limited. The directors have also decided to issue 100,000 shares at par to existing shareholders, in tho proportion of one for every five held on July 31. An announcement by tho directors of Walkervillo Co-operative Brewing Company states that in the event of the agreement being ratified by tho shareholders, tho arrangement would take effect from August 1 next. Before that date tho Walkervillo directors proposo to declare a dividend of 6i per cent to shareholders for the year ending July 31, 1938.

CANTEBURY CHEESE EFFECTS OF ADVERSE WEATHER []JY TELEGRAPH —J'll icss association] CHRISTCHURCH, Tuesday "Because,of adverse weather during the season tho figures for the grading of cheese produced in Canterbury liavo shown a falling off," stated Air. A. C. Ross,'supervising grader for the South Island, when speaking at the presentation of tho Lyttelton Harbour Board's cheese export trophy. . Last season, Mr. Ross continued, had proved a very hard ono for cheeso manufacturers. During tho summer in some districts it was difficult to keep the night's milk cool, an important factor in the manufacture of choose. Factory managers, however, had done wonderful work in trying to prevent the quality going back. Starter troubles had caused theru much concoru.