PRODUCTION PEAK REACHED

Taranaki Daily News, 16 January 1933, Page 12

PRODUCTION PEAK REACHED

DAIRY MARKET CONDITIONS.

ESTIMATION OF ARRIVALS.

Once more the season has reached the peak of production, and a new record to date established, states A. H. Turnbull and Co., Ltd., in a report (dated January 11) on the condition of the dairy produce markets. Grading figures for five months ended December 31 show an increase over last year, in butter ■of no less than 20.06 per cent., and in cheese of 12.87 per cent., or an all-round increase in butterfat of 18.249 per cent. The Christmas butter trade is usually expected to hold all produce markets firm, but the heavy arrivals during NovemberDecember proved too much, and as stocks accumulated so prices weakened, until on December 16 81s. to 82s. was quoted/ the lowest price recorded for many years. Better consumption on a retail price of lid. a pound for New Zealand then improved matters slightly, and the market has remained quietly steady at 82s. to 84s. Danish in the meantime has fallen away from 121 s. 6d. on December 2 to 112 on December 7, thus bringing the margin of difference below 30s. A question that has been so often asked is why is Danish butter quoted at a premium of 30s. to 40s. per cwt. The answer is plainly “supply and demand,” but first glance at the arrivals of butter (in tons) in the United Kingdom for November: — N.Z. Australian . Danish 1931 1932 1931 1932 1931 1932 6561 11,290 5752 8460 9475 10,090 The increases are: New Zealand 4729 tons, Australian 2708 tons, Danish 615 tons, an increase of 7437 tons from New Zealand and Australia, as against 615 tons Danish. This, together with an increased production for five months of 20 per cent., has undoubtedly affected prices for the New Zealand and Australian article. .While we in New Zealand deplore the low markets recorded for our produce, we are somewhat fortunate in being able to market this increased • quantity without a still further collapse in prices. During December forward speculators were available at 9d. to 9 l-Bd. nett, f.0.b., but have again retired from the market, and latest cabled reports from London advise, considerable offerings at 82s. to 83s. per cwt. Heavier shipments afloat caused sellers of cheese to press sales, and the market fell from 645. 6d. on December 2 to 48s. 6d.\ white and 565. 6d. coloured. There has been a tendency this season to avoid coloured cheese owing to complaints of discoloration, and the preponderance of white cheese has manifested itself; latest advices show coloured at a premium of Bs. per cwt. No doubt this will rapidly disappear as the proportion of white and coloured is rectified. No forward buying has taken place, and W. Weddel and Co., Ltd., London, cables, that it anticipates steady markets round about present prices. The estimated arrivals in the United Kingdom during January-February-March, compared with actual arrivals in previous seasons, are:— NEW ZEALAND BUTTER.

In store at GOLD AND SILVER IN LONDON. London, Jan. 13. Gold is quoted at £6 3s 2d an ounce compared with £6 2s BJd on each of the previous days. Silver is quoted at 16 7-8 d an ounce spot and 16 15-16 d forward, the same as on Wednesday.

January February .... March ........ 1931 tons 11,530 11,520 8,127 1932 tons 12,716 10,371 12,937 1933 tons 13,757 9,975 11,000 31,177 36,084 34,732 NEW ZEALAND CHEESE. 1931 .1932 1933 tons tons . tons' January ...... 9,506 9,889 11,830 February .... 11,986 8,626 10,000 .March ......... 11,808 13,551 11,120 33,300 32,066 32,950 GRADINGS AND STOCKS. Butter. 1931 1932 1933 tons tons tons Graded' in Dec. 15,450 16,809 ■ 18,838 Five months to Dec. 31 50,900 54,915 65,930 In store at Dec. 31 ...... 11,200 13,538 15,326 Cheese. 1931 1932 1933 tons tons tons Graded in Dec. 15,200 14,986 15,782 Five months to Dec. 31 42,650 40,014 45,164