BUTTER REACHES 100/-

Poverty Bay Herald, Volume LX, Issue 18192, 13 September 1933, Page 6

BUTTER REACHES 100/-

best VALUE IN TWO YEARS MARKET REMAINS FIRM CAUTIOUS POLICY URGED Butter has now reached the 100 s mark. This is the highest point in value to New Zealand farmers for nearly two years, but a cautious policy is urged by those closely connected with the markets.

The increase to 100 s adds 2s per ewt. to the quotations received .at the end* of last week, and is a further rise of Is on yesterday’s advice. One of the most comforting features is that the market is described as firm- at the higher level. It was pointed out to-day, however, that; the position in regard to f.o.b. offers suggests some doubt of a further improvement in the market rates. Mr P. 11. Hamilton, secretary of the Okitu Co-operative Dairy Company, stated that the fact of the f.o.b. offers not following the upward trend in London suggested that there was a feeling of uncertainty. Usually, on a rising market, f.o.b. buyers were one jump ahead of the London parity, as was the ease recently. The f.o.b. offers had not gone beyond lid per lb, equal to only 94s to 95s per ewt. in London, whereas the market Had nowimproved to 100 s, equal to nearly ll}d, f.o.b. lie agreed that the position had a much brighter outlook than a few months ago i hut suppliers should not; anticipate too much for a time. F. 0.8. OFFERS WITHDRAWN A similar cautious note was struck by Mr J. H. Sunderland, secretary of the Kia Ora Co-operative Dairy Company, who said that some of the f.o.b. offers at lid per lb had been withdrawn recently, suggesting caution on the part of the operators. 110w r ever, a shortage of butter was threatened as a result of Australian conditions, and, if present indications of Australia’s dry season were borne out, market quotations should be more than maintained.

Delving into statistics to-day, it was found that values of New Zealand butter have not been higher than today’s for nearly two years. Present values were equalled just a year ago, but one has to go back to November, 1931, to find the f.o.b. equivalent going above to-day’s quotation to any extent. To-day’s price of 100 s per ewt. is equal to 11.72 d. per lb., f.0.b., or practically 11 Jd on the 25 per cent, exchange. On September 23 last year, London quotations were 108 s to 114 s, equal to .lljjd per lb., f.o.b. on the 10 per cent, exchange, and a reduction front 112 s to 115 s, with exceptional quality' at 116 s, on September 16, when tko f.o.b. equivalent was about lljd. per lb. THE LOWEST POINT. That was the highest point of a seasonal improvement, and not since November .14, 1931, had quotations been ut a similar level. On the date lastmentioncd, the rates were 107 s to 114 s, with exceptional quality at 116 s, and the f.o.b. value was estimated at 11 id. The previous week, November 6. 1931, the rates were 112 s to 118 s, exceptional quality* at 120 s, the f.o.b. value being llfd per lb. Tho lowest point reached by the market was early last April. The Dairy Board’s reports show that on April 8, New Zealand butter was selling at 65s to 675, with exceptional quality at 68s, but for a few days quotations went as low as G4s. The f.o.b. equivalent then was only per lb. The improvement since then has been steady, with more rapid progress during the past few weeks. To-day’s advice concerning the rise in the market to 100 s was contained in the following message from Messrs. Joseph Nathan and Company: ter, 100 s. The market js firm.”