SHARP RISE

Waikato Times, Volume 118, Issue 19676, 9 September 1935, Page 6

SHARP RISE

BUTTER NOW 110/-.

LATEST LONDON PRICES. DEMAND CONTINUES FIRM. Reaching 110 s per cwt. In consequence of a sudden advance on the London market on Saturday, New Zealand butter has attained the highest price recorded since September, 1933. An earlier message received to-day, and apparently sent from London in the middle of the morning quoted New Zealand butter firm at 107 s, an advance of a shilling on Friday’s prloe. A later message, however recorded a sharp rise In the quotations, the closing rates being given as 109 s to 110 s. The quotation for 'New Zealand choicest salted butter a year ago was 78 s to 795. The present advance Is attributed by experienced, observers to the shortage of supplies, but there is a certain amount of opinion which predicts a generally firmer tone, even when the new season’s supplies 'from Australia and New Zealand commence to arrive on the market. Meanwhile the hardening tendency appears to toe continuing and there is a likelihood that still higher levels may be reached before prices commence to decline. The following reports have been received by merchants: — Messrs Joseph Nathans, Ltd., from Nathan and Trcngrouse, Ltd.—“ The latest quotations for New Zealand. Butter is firm at 107 s; New Zealand cheese, white, 525; coloured, 51s 6d.” Messrs L. McCartney and Go., Ltd., from their London principals, Messrs. Henry A. Lane and Co. —“The butter market has advanced' suddenly. New Zealand, 109 s to 110 s.”

CONTINENT SHORT SUPPLIED. FACTORS BEHIND INCREASE. CONSUMPTION MAINTAINED. Commenting on the reasons for the increased price for New Zealand butter on the London market a dairying authority in ©lose touch with the export market states that the late spring in Australia, resulting in the retarding of production, coupled with short supplies on the Continent were potent factors. Another point, however, and one which New Zealand dairy farmers could regard as highly encouraging, was that consumption in Britain had not fallen off on account of the dearer values. Th(s Indicated, he said, that there was more purchasing power in the hands of the consumers and the prospects for a general higher level this season were distinctly favourable.