BUTTER MARKET RISES.

Southland Times, Issue 23346, 2 November 1937, Page 6

BUTTER MARKET RISES.

Highest Figure For Over Seven Years RETURN WELL ABOVE GUARANTEED PRICE QUOTATION IN LONDON OF 150/- A CWT. The latest quotations for New Zealand butter from the London market show the highest price for nearly eight years, a return of 4.89 d a lb f.o.b. higher than the guaranteed price. Cheese is also much above the guaranteed price level and for white cheese the margin is a half-penny a lb f.o.b. It is considered unlikely that any of last season’s dairy produce will still be on the London market and present values will place the Dairy Industry Account in a healthy position for the new season to meet any subsequent reductions in prices.

The latest quotation for butter on the London market is 150/- a cwt, compared with 146/- a week ago and 104/early in October a year ago. This is the first time New Zealand butter has reached 150/- since February 1930, the improvement being attributed to shorter supplies. The highest quotation for Danish butter shows a premium in favour of Danish of only 2/a cwt, which is a marked reduction in the difference that generally rules between New Zealand and Danish values. The basic rate fixed under the guaranteed price scheme, subject to quality differentials, is 123/8 a cwt f.0.b., New Zealand currency. The equivalent landed price in London is 112/- The guaranteed price is equal to 13.25 d a lb f.o.b. and the current London quotation is equal to approximately 18.14 d a lb f.0.b., showing a credit in the Government’s account of 4.89 d a lb. QUOTATION FOR CHEESE New Zealand cheese prices show a surplus over the guaranteed price, but riot to the same extent as butter The latest quotation is 71/- a cwt for white and 69/6 for coloured. The basic rate of the guaranteed price for cheese is 70/4J- a cwt f.0.b., New Zealand currency The equivalent landed price in London is 67/- a cwt. The guaranteed price is equal to 7.54 d a lb and current prices are 8.06 d a lb for white and 7.54 d for coloured. There is a great deal of curiosity in the industry about the actual realizations under the guaranteed price scheme tor the first season and as all of last season’s produce most probably has been sold, it should be possible for the Government to announce the actual returns very shortly. , An Invercargill man connected with the dairy industry told The Southland Times yesterday that he had gone closely into the .eports of London prices throughout the last season ana while he did not think it would be quite possible for the realizations to balance the payments under the guaranteed price, the deficiency, in his opinion would probably be a good deal less than halt of the sum of £650 000 estimated by the Minister of Marketing (the Hon. W. Nash). During the first three months of the season, the butter ma - ket had been fairly steady at approximately the equivalent of the guaranteed price, but then had been below the price for about four months, lhe lowest quotation had been 83/- a cwt, but in the following week the market had risen to 89/-. For a time prices haa hovered near the guaranteed price and since August there had been a strong upward tendency.’. He expected that the cheese account would show a substantial surplus, but probably rt would not be sufficient to balance the deficiency in butter.