BUTTER MARKET ACTIVE

Poverty Bay Herald, Volume LXIII, Issue 19023, 25 May 1936, Page 3

BUTTER MARKET ACTIVE

BUSINESS IN BRITAIN STRONG FORWARD POSIT FOX (Elec. T«l. Copyright—-UnSl«<l Press Assn.) LONDON, .May 23. Better news for Australia and New Zealand is the sustained activity mi the butler market, the most favourable feature of which is the strong; forward position.

The rapid decline of Australian and N'ew Zealand gradings is tin* •principal reason for tlie "bullishness." Another factor is the backward production throughout-Europe on account of the eold spring.

Most buyers have been running light slocks and the rise in prices'resulted in a scramble for supplies, which were inadequate to meet, the demand. Sonic Tooley Street dealers, however, are wondering whether I'he appreciation was not too steep and sudden. If the retail price of Empire butter rises above Is per pound consumption is likely to suffer.

The cold store stocks are beginning to increase. For May. .June and July the total arrivals are likely to exceed consumption bv approximately IOC') ions a week.

It is doubtful whether the trade can absorb the surplus, except at a juice yielding a good margin of profil it retailed til a shilling, Cheese continues firm, though overshadowed by butter. A further appreciation is expected in the near future. Canadian production is, backward and lit I le is offering

The market for N'ew Zealand butter continues to improve. It closed last week at 98s per cut, an advance of Is per ewl over i Jto previous best quotation, This price is equal to Hid per lb, 1'.0.b. Thi' demand for cheese has quietened a little, but prices remain unchanged. Messrs, Joseph Nathan and Company report ha vine; received, the following cable message from .London dated M;:\ 23:—"Butter, 97s'to 88s; the market is (inn. Cheese, white 57s 6.(1 to 58s, coloured 55s lo 55s fid; the market is quiet."

A reeenl report from Australia slates that tin- production of butter there continues lo decline, but the weekly decrease during April was not as pronounced as in March, nor as sharp as i( was during April of last year. Dairying conditions in the (astern States are far from satisfactory, and the early advent of wintry weather, following the rather inadequate autumn rains, may seriously affect milk production during the next f ew months.

From July 1, 1935, to April 27, 1936, total gradings of butter throughout Australia amounted to 80.072 tons, which is 22.582 tons less than the lolal for the name period of lhe previous season. It is estimated that cold storage slocks now awaiting shipmenl in Australia amount to about. 6000 lons, approximately 2000 'ons. more than the quantity available al this period lasl year. The Export Board has further reduced the weekly quantity for shipment (o Great Britain, and il is hoped that lhe present permissible weekly quantify of 1000 tons will he maintained for the next few months.