BUTTER MARKET

Waikato Independent, Volume XXXV, Issue 3265, 5 February 1935, Page 4

BUTTER MARKET

NEW ZEALAND REACHES 92/LONDON POSITION FIRM The butter trade continues to improve. Prices have steadily hardened until to-day choicest salted New Zealand sold at 92/- a cwt. and Australian at 90/-.. These rates are 15/- higher than at, the beginning oi : January, and 20/- higher than at tho beginning of December. Several causes contributed to this satisfactory state of affairs. The first was the continuance of the strong consumptive demand, which resulted in a reduction of cold-stored stocks to about 400,000 boxes, .or roughly about one week's consumption. Another "bull" factor in the market is that New Zealand is shipping considerable quantities to the United States, which also has been buying here. Then there was the news of the severe drought in New Zealand, and a consequent heavy reduction in butter production, so importers are taking a very firm attitude. The higher values will cause retailers to advance their prices by one penny or twopence a lb, but it is not expected that this will mean any serious reduction in consumption. BUTTEE FOE AMERICA ALTERATION TO SHIPPING The demand for shipping space for the present butter, trade with the United. States has resulted in the New Zealand Shipping , Company's motorship Opawa being booked to discharge cargo at New York on its return voyage to Great Britain. Normally the Opawa would proceed to England direct, but the New Zealand Dairy Produce BoarYl has arranged for discharge at New York. ' Tho Opawa is due at Auckland next week and she is expected to sail finally from Wellington,on February 25 or 26. Details of the quantities of butter offering are not available, but it is understood that, produce will be lifted at Auckland and southern ports. Since Friday there has been a temporary halt in purchases of butter for forward shipment to London and New York. In view of the strong spot demand in London and the latest reported advance to 02/- per cwt, factories have lifted their limits to IO.Jd per lb f.o.b. equal to 90/- per cwt. London. The last sales reported were at 10 3-Sd. Many factories have already disposed of all their butter available for February shipment, leaving the bare "goodwill" consignment quantities.