DAIRY MARKET REVIEW

Taranaki Daily News, 23 September 1931, Page 16

DAIRY MARKET REVIEW

GERMAN SITUATION EFFECTS POOR ENGLISH SUMMER. ACTION ON CHEESE SALES. An interesting review of the dairy produce markets in London, dated August 15, has been received by Dalgety and Co., Ltd., from Samuel Page aud Son. The report states: ' “The dominating feature of. the butter market since our. last report has been the closing of Germany, owing to financial stringency, as an outlet for Danish and Baltic States butter. Continental shippers were thereby forced to find other buyers, resulting in increased quantities being sent to Britain. The imports into the United Kingdom from Scandinavian countries and the Baltic States in July were 40G,G92 casks, as against 349,642 casks in June, while they show an increase of over 25 per cent, in comparison with July of last year. The large supplies not unnaturally weakened the market considerably and at one period Danish was offered at 104 s. f.o.b. (equal to 108 s. landed terms), the lowest price recorded since 1911. Esthonian, Latvian and Lithuanian, all very desirable descriptions as far as quality is concerned, declined to a corresponding extent and consequently there has been some very cheap butter on the market. “The result of this unlooked-for influx of Danish and Baltic butter caused values of New Zealand and Australian to weaken. When we say unlooked for, we do not. mean to include the past month, foD of course, we mentioned in our last report w r hat the probable effect the German troubles would have. But prior to that, when there was no general knowledge of how the situation was developing in Germany, our market was firm and there seemed reasonable prospects of values of New Zealand advancing from 1155., and it is unfortunate that the prospect should have been marred by something outside ordinary calculations. The sympathetic reaction of New Zealand and Australian values from top prices last recorded was generally 55., and even 65., at the market’s worst-point; that is to say, finest New Zealand changed /hands at 109 s. to 110 s. and Australian at 4s. less, and quotations were round about that level for a fortnight or so. This week, however, things took a turn for tho better, a considerable gap in arrivals aiding sellers to get the extra shilling or so hitherto denied them, while the market became active in mid-week consequent upon the heavy advances in the asking prices of Danish and Baltic caused by a renewal of buying by Germany and other Continental countries, with the result that the lost ground has been more than recovered. “The feeling of uncertainty engendered by the troubles of Germany communicated itself to the cheese market, although it is not at all clear why this should have been the case. Fortunately, tflie position was sound enough to prevent any sentimental drop in values such as occurred with butter, the result being merely a dull market, with, perhaps, a decline of not more than Is., and this week the position has fully recovered. “What may have adversely affected prices is the very poor summer—this week, for instance, the temperature has touched freezing point in some parts of the country, while there has been a sad lack of sunshine this season. Further, it has rained nearly every week-end, but despite these conditions, adverse in every way, the demand has improved and values' of New Zealand and Australian at the time of writing have an upward tendency.”