BUTTER MAY BE SCARCE.

Star (Christchurch), Volume LXVI, Issue 20331, 14 June 1934, Page 1

BUTTER MAY BE SCARCE.

Drought in U.S. Gives Hope of Higher Prices. LONDON, June 8. Although the North American drought may not cause a wheat shortage, it will possibly restrict dairy production. It is pointed out that the United States in 1933-34 accumulated 90,000 tons of butter, much of which the Government bought to feed the unemployed. A shortage should have a firming influence on world markets. It is not expected that Australia would otherwise benefit, although it might export more to Canada, where the Ontario and Quebec butter areas remain dry. The European drought is producing a “ bullish ” undertone on the London butter market, despite the slowly increasingf stocks in cold store, and the expectation that the Australasian shipments in the forthcoming months will exceed those . of the corresponding period of last year. Full effects of the drought have not yet been experienced, as dews are maintaining the pastures, but if it continues a month, European supplies are expected to decrease considerably.