BUTTER AT 102s

Taranaki Daily News, 5 September 1935, Page 4

BUTTER AT 102s

PROSPECT OF FURTHER RISE. LONDON SHORTAGE FORECAST. Cable messages received at New Plymouth yesterday quote New Zealand butter on the London market at 102 s with indications that the demand would become keener and the price rise still further in the near future. There is the possibility of a shortage, with Australian and Continental supplies decreased substantially. At the end of last week New Zealand butter in store at London totalled 5240 tons, an exceptionally low figure for recent years. A total of 11,277 tons was held at this time last year and 5769 tons in early September, 1933. Australian stocks totalled 4269 tons, compared with 7878 tons last year and 1800 tons in September, 1933, when supplies _ were very scarce. A few weeks ago it was estimated that stocks of all butters were 29,482 tons, against 46,432 tons last year. Forward business is being done at Auckland at 11 l-8d per lb f.0.b., equal to 95s per cwt. London. That is 5s per cwt. less than the spot price, but some of the butter will not arrive in England until early in November. . Usually at this time of the year forward business is not particularly brisk, owing to the expected rapid fall in London prices once the Southern Hemisphere season is well under way.

The willingness of merchants to pay the equivalent of 95s per cwt. for two months ahead is regarded as a favourable sign.