COMMERCIAL

Poverty Bay Herald, Volume LIX, Issue 17956, 7 December 1932, Page 11

COMMERCIAL

LOW BUTTER PRIO.SS REVIEW or LONDON MARKET “London quotations for New Zealand butter are at the lowest level experienced for probably 20 years,” states Amalgamated Dairies, Limited, in its monthly advice to the suppliers of the New Zealand Co-operative Dairy Company, Limited. The report stated that quotations had moved downward during the last inoath.

Heavy shipments of butter from Australia and’New Zealand were being received, and sellers were anxious to quit at the best price obtainable. These factors created an atmosphere conducive to panic. Buyers had no confidence, and wore only operating to fulfil immediate needs. Butter shipped from Australia and New Zealand in October was nearly 50 per cent, greater in quantity than that shipped last, year. Argentine shipments shrunk to under 1000 tons for October, and therefore did not figure very largely in the total of 23,000 tons received. From December 1, Australia had arranged to introduce a system of restricting shipments' in the flush months. This was similar to the system which had been in force in New Zealand for some years. It was hoped this system would ease the position, Tbo market .was subject to many outside influences, and it was impossible to indicate the forward tendency. Amalgamated Dairies, Limited, stated that foreign butters were being dumped on to the British market before the Ottawa preferences became operative, and it Was possible that prices would harden when these stocks were absorbed and protection was given by the increased duties. London and provincial storks were somewhat above last year’s figures, but generally speaking there was ho accumulation of Australian and New Zealand butter.

A minor factor which had to be kept in mind in considering the forward position was the stock of butter in the Irish Free State, .The . latest f.o.b. offers, which were restricted with respect to quantity, were from 9d to 9j,<l for De-pember-January shipment. .Stocks of Canadian butter wi re coiiside.rbly lower than last year.

ANOTHER MARKET SURVEY SOUND SPOT STOCK POSITION Messrs. Joseph Nathan and Company, Limited, in a survey of the butter market, state: — “The market is in a chaotic state. When at the commencement of the present season finest was 'quoted at, 115 s, the prospects appeared to bo fairly bright; but any hope of these rates being maintained was quickly dissipated as succeeding weeks showed a lifeless and sagging market, with almost daily reductions in quotations. “Now we are faced with the lowest price ever recorded since the industry was placed on a proper commercial footing. Actually there appears to' be no real reason for quotations to be as low as they are at present, unless it- is absolute lack of confidence on the part of buyers. “Shipments have necessarily been heavier than last year so as to keep pace with the unprecedented increase in production during the earlier months of the season, blit so far the market has readily absorbed these increased quantities, and the spot stock position is sounder than in the previous year. “Possibly the fact that both Australia and New Zealand are so far experiencing excellent seasons lias made buyers unusually pessimistic as to the future, but candidly, we are of the opinion that prices have been forced down to a lowei* figure than is warranted. Some particularly heavy shipments are due to arrive in England during the next week or so, and if the present ‘bearish’ tone continues there is no telling how far the market may recede.

“Another factor which has not helped the market has been thq low c.i.f. prices offered by Australia for lor wal'd shipment. they apparently being more inclined to sell than to consign. Of course, the exchange factor gives them a decided advantage over New Zealand. “A little forward business has been

done round about 9£d to 9§d, but factories generally arc looking for something better. “It would appear as if there is some prospect of shipments to Canada at a later date.” LONDON SHAREMARKET /Elec. Tel. Copyright—United Press Assn.) (Received Dec. 7,2 p.m.) LONDON, Dec. 6Share quotations are as follows: - Bank of-Australasia, £7 12s &t; Bank ot New South Wales, £22 ss, ex div.; Union Rank of Australia, £6 3s 9d, ex d*v.; National Bank ot New Zealand, jwi Rank of New Zealand', £IOO 10s; ditto, shares, 4£s; Loan add Mercantile, 4 per ■cent, ‘debentures, £7l 10s; do., ordinary stock, £45. ; THE SHAREMARKET (Per Press Association.) AUCKLAND, this day. (Sales on Change : Wilson’s Cement, 29s 6d; Government stock, 5& percent., .1937, £95; s|.per'cent., 19$I, £95 15s; 51 per cent., 1936, £9B ss; Auckland Harbor Board, 5.j per Cent., 1948, £9B 10s. CHRISTCHURCH, tins day. Sales on ’Change : Bank .of New Zealand, cum div , 42s 10d, 42s lid; New Zealand Guarantee Corporation, 4s od; New Zealand Refrigerating, £1 paid, 9s 3d ; Alexander Mines, con., cum div.,' 22s ; Waihi Grand Junction, 3s 6d - Waitahu, 9d prem. (2). Reported'sales : New Zealand Government 4A per cent, inscribed stock, 1938, £92 15s ' '-'W: DUNEDIN, tliis day. Sale oil ’Change: 1938 4£ per'cent.' stock, £92 15s;