BUTTER PRICES UP AGAIN

Taranaki Daily News, 10 December 1926, Page 9

BUTTER PRICES UP AGAIN

RISE OF FOUR SHILLINGS FINEST GRADE QUOTED AT 1708. MARKET REPORTED TO BE FIRM. A further rise of 4s per cwt in the price of New Zealand butter on the London market is recorded in advice received by Dalgety and Co., Ltd., by cablegram. New Zealand “finest” butter Is quoted at 170 s and first at 168 s per cwt. The market is reported as firm. Cheese has also shared in the buoyant condition of the London market, and New Zealand ’‘finest” is quoted at 90s, a rise of 2s per cwt. The recovery of the London dairy produce market has eome with dramatic suddenness. Two weeks ago values for new season’s butter—the first to comb under the New Zealand Dairy Board s marketing scheme —still held at the price originally named, 148 s to 150 s. Stored butter of last season’s make was quoted at 138 s to 1425. Tho market was reported as dull and sluggish owing to the industrial depression following on the protracted coal strike and the consequent low consumptive demand. There were also many reports that buyers were boycotting the New Zealand product as a'protest against control. RETURNING ANIMATION. The first sign of returning animation in the market came in advance of the final settlement of the strike, although no doubt the partial resumption by eoal miners and the confident expectation ot a settlement influenced produce circles in their buying operations. The end ot the eoal strike eame on November 27 and on November 24 the first advance o F=¥s in the board’s prices was named. Hie following day another increase of 4s was made, to 158 s. The market held at that figure for a week when, on December 3, the board announced a further rise to 1665. The latest news placed New Zealand butter at 170 s. The increase in values in so short atime is shown in tabular form below, the dates given being those when the rises were announced in New Zealand: November 23 .... 148 s to 1.50 s November 24 151 s November 25 ..... 158 s December 3 ...... I®® S December 9 SOUND STATISTICAL POSITION. In spite of the rapid appreciation, the 'butter market is still reported as firm. This is, perhaps, the most satisfactory feature of the present position, and there is said to be reason-to expect that the advance will, at least, be held. In fact, the statistical position Is such that in certain circles further Increases are confidently anticipated, at. least until the brisk Christmas demand is satisfied. The season opened with abnormally heavy stocks of New Zealand butter held in London. These stocks were variously estimated, but their weight was so great as to depress the market seriously. But to-day it is reported not only that these heavy stocks are cleared, but that practically the whole of the new season’s make, handled by the board, has also gone into eonsumption. , With this incubus removed the market has reacted like a spring. So much «o that, although about 2000 tons ot new season’s butter have already been sold in London, the board is able to raise the price by 4s at the moment the lonic is due with a further 70,000 boxes, or 1750 tons.