THE BUTTER MARKET.

Waipa Post, Volume 45, Issue 3208, 26 July 1932, Page 4

THE BUTTER MARKET.

THE upward movement in the price of butter will be welcomed by all those interested in the dairying industry, and more, particularly by those who suppliers to dairy factories who still hold stocks of last season's Supplies; These suppliers Will be concerned to know whether the supplies now dri hand Should be sold forthwith or held against a possible further rise in price. Anyone who pretends to know how the market is likely to go is assuming too much the role of a prophet. In the absence of any prophetic faculty, however, it would be unwise to hazard a guess as to the market's future movements. A recapitulation of the known factors, however, point' to the possibility of the present advance being but a temporary movement. Denmark's production season has not been favourable, which wiU doubtless reduce output from that source, but this is more than counterbalanced by the fact that Germany takes practically none of Denmark's butter, 90 per cent of which now goes to the London market. The Irish supplies are possibly dislocated temporarily owing to the repercussions of the political situation, while some people may be withholding Canadian supplies in anticipation of favourable concessions being accorded at Ottawa to butter produced within the Empire. These two factors are likely to have only a temporary effect on the market. There is no prospect of the exchange rate hardening; it is more likely to recede slightly. If this should prove to be true, then it would tend to depress .the prices for butter in terms of New Zealand money: - On 'balance, therefore, the known factors, appear to indicate that the. better poHcy would be to take advantage' of the", present favourable "turn of the butter market.