DAIRY MARKET TREND

Taranaki Daily News, 13 March 1933, Page 9

DAIRY MARKET TREND

LOW POINT IN FEBRUARY.

LIMITATION NEGOTIATiONS.

Quotations for New Zealand, butter during the past monthhave.readied the lowest level for 2 5 Years,, and at the moment it is difficult to make any forecast a? to the imihedtete Jiiture, state? A. H. Turnbull and ■.Co.’s ■ monthly report received from London. Heavy shipments are ’still aflbat, both from Australia and New Zealand, whilst Continental* countries' are preventing the importation of butters by surrounding foe.mselyiEg'with high. 'feriff barriers. During February foe market steadily weakened,.-until tlfe ' .mean quotation reached as" low as 74s 6d per cwt on February' 24, At thab time considerable aterm'w®? ppcasfoxted by the steady accumulation of stocks of butter in the United Kingdom and the fact that arrivals were not being cleared promptly. Suggestions were made* by the London importers that Australia and New Zealand should restrict shipment? of butter for a period In order to give the market a chance of recovmy, Apparently buyer? anticipated that this representation by the London importers and the British Government would have some effect on restricting the immediate imports and a considerable firming took place. On February 26 the market ran up to as high as 80s per cwt-, but with the decision of the New Zealand and Australian not :to adopt, any plan of restriction of exports prices fell to 76s with a slow market. : Messrs W. Weddel and Co. Ltd. cable that determined -efforts- have - been made to raise prices, but they have been frustrated by . the continuance of severe selling pressure,’ caused fiy the fact that spot sto’eks continue to. increase. Very cheap. forward offers of . Australian butter are also preventing any. improvement in the' spot quotations.

Cabling on March 4 Messrs W. WeddcJ and Co. Ltd, state that' the immediate future is very uncertain but much will depend on the result of conferences to restrict imports. These conferences between the British authorities and the Australian' .and.. New Zealand Governments and the representatives of Denmark and other exporting countries continue. —

There was a fair amount of forward activity at round about 9d and 9 l-8d at the time that the spot market showed an improvement/ about February 25 and 26, but since then forward buyers seem to have withdrawn altogether and very little business is being done. Buyers’ ideas of value are round about Bjd to 8 7-8 d per lb f.o.b. Butter gradings for February show a considerable increase on previous years, whilst the quantities in store in New Zealand at the end of the month are also 3009 tons above last ■ year’s stocks. The cheese market, has been particularly disappointing with a continuous drop in prices. Coloured cheese has suffered most in this respect, and although the proportion of coloured leaving New Zealand is still below the customary 33 per cent-, there .is apparently sufficient now on hand to meet all demands, and the premium which has existed is rapidly disappearing, being now only 5s per cwt. Messrs W. Weddel and Co. Ltd. cable that spot stocks of colonial cheese are light, but the home production is increasing rapidly. However, they anticipate a steady market. There has been practically no forward activity in cheese for some months and buyers do not apparently show any interest in cheese for i forward, shipment. y