OUTLOOK FOR BUTTER

Wanganui Chronicle, Volume 73, Issue 460, 29 December 1930, Page 7

OUTLOOK FOR BUTTER

DEPLETED STOCKS MUCH LESS THAN LAST YEAR SUMMARY OF BRITISH TRADE [By Telegraph—Press Association—Copyright.] Received Dec. 28. 9.40 p.m. LONDON, Dec. 27. The Stock Exchange closed for the Christmas holiday in cheerful vein, the markets having received an unexpected fillip in the reduction of the New ork re-discount rate to two per cent, which is the lowest on record. It is generally believed the reduction was made with the idea of assisting American conditions and checking a decline in stocks »vhich. recently had been seriously affected by bank failures. The reduction had an immediate effect on the Stock Exchange, all British funds advancing sharply and the movement spreading to many other sections. Unfortunately Australian Governments did not participate, their tendency being downward. Other Australian securities also show weakness which is not surprising in view of decreased profits. Analysis of the balance sheets of eight loading Australian companies shows that the, net profits of 1930 were £1.191,843 compared with £2.953.858 last year —a decrease of almost 42 per cent. A Gloomy Review. The Economists’ Review states that trade once again is far from cheerful reading. The reviewer says that faint promise of greater stability is held out by some. October-November trade statistics once more ended in disappointment. Wholesale prices, after a period of six or seven weeks of relatively greater stability, began to fall with renewed precipitancy at the end of November. Tt seems highly probable that New Year’s Day will coincide with the return of the Economist index number to pre-war level. returns lately continued to grow in contradistinction to-the normal pm-Christmas tendency. The last available weekly figures show 2.396.962 unemployed. Overseas trade which, in October, showed signs of little Improvement, receded again the following month. Here too there is no sign that the general trend of the curve has eeased to be downwards. . . After this dismal foreboding it is pleasant to read in the Financial Times of definitely brighter prospects opening out before’the tin industry. The Producers Association announces that 90 per cent of the world’s output bound itself to a definite agreement, under which each country’s output will be restricted to a specified percentage. Spirit in Butter. The butter market had quite a good little spirit of activity during the three business days of this week and prices firmed a shilling to two shillings all round. One factor contributing to the improvement was the unfortunate loss of the steamer Oberon as she carried over 3000 cases of Finnish butter and the absence of this from northern markets had a hardening effect. The consumptive demand throughout the country remains good. The Empire Marketing Board report says that stored slocks wnich, six months ago, amounted U) 1,200,000 boxes is now reduced to 276,000, which is less, by approximately 91,000 than the stocks of a year ago. Importers are gratified at the success of their propaganda function. It received much publicity in the newspapers and pictures showed films all over the country for several days; so millions of people must have learnt of the Australian and New Zealand butter obtainable here. This should certainly stimulate the demand. Australian Eggs. The Australian egg season is approaching its close. The last shipments are due about three weeks hence. Tne season has been a record one so far as the quantity was concerned but, unfortunately, seems likely to furnish another record in respect of iow prices Owing to heavy supplies from all sources values steadily declined. Apart from a short-lived advance, to-day s prices of 12s and 14s may not be obtainable till last arrivals are cleared us the European production is large owing to the prevalence of mild weather conditions on the Continent and in Britan. ' ; .