BUTTER REACHES 1355.

Wanganui Chronicle, Volume 80, Issue 248, 19 October 1937, Page 11

BUTTER REACHES 1355.

RISE OF 5s ON WEEK LONDON MARKET QUIET The strong upward movement in the price of New Zealand butter on the London market continues unarrested and the highest value for seven years, 135 s per cwt., is now ruling. Although a slight setback was suffered the previous week, the fall was only temporary and the latest quotation represents a rise of 5s per cwt. on the week. The rate is now almost 3d per lb., f.0.b., above the guaranteed price. The market tone is quiet. The rise in Danish over the past week is only 2s per cwt., so that its premium over the New Zealand product has been reduced to the low level of 6s per cwt. Fears were recently expressed that the increase made in the retail price in London might tend to a swing toward margerine, but consumption is evidently being maintained even at the high prices ruling at present. Cheese values, however, show a slight reduction. Both white and coloured have fallen 6d per cwt. over the past week, and are now selling at 70s 6d and 69s 6d per cwt., respectively. The basic rates fixed under the guaranteed price scheme, subject to quality differentials, are 123 s 8d for butter and 70s 4Jd for cheese per cwt. f.0.b., New Zealand currency. The equivalent landed prices in London are 112 s for butter and 67s for cheese. The guaranteed price for butter is equal to 13.25 d per lb., f.0.b., and the current London quotation is equivalent to approximately 16.22 d per lb., f.0.b., New Zealand ports. The equivalent price for coloured cheese is 7.39 d per lb., f.0.b., and for white, 7.99, compared with the guaranteed price of 7.54 d.

A Press Association message sent from London on Thursday, states that the butter market is quiet. Danish is quoted at 140 s to 1425; New Zealand, choicest salted and unsalted, 1355. No Australian is offering. Cheese is quiet. New Zealand, white, 70s 6d; coloured, 69s 6d. The following table compares the

mean closing prices on the London market foi the past two weeks, a month ago and a year ago:— Oct. Oct. Sept. Oct. 13 8 17 16 Butter— 1937 1937 1937 1936 N.Z. 96/Australian * 117/96/6 Danish 141/Cheese—N.Z.: 122/White 70/6 71/67/6 67/9 Coloured Canadian: 69/6 70/6S/6 65/3 White 70/6 70/6 69/Coloured 70/6 5 None 70/6 70/offering 63/6