THE BUTTER^MARKET.

Dominion, Volume 2, Issue 482, 15 April 1909, Page 2

THE BUTTER^ MARKET.

BRIGHTER VIEWS.^ : AltVough tlio predictions of London correspondents liavo been discouraging as to tho futuro prices of butter, Sydney merchants expect prices to riso to a slight extent shortly. Tlio London correspondent of the "Sydney Morning Herald,' 1 under dato March, 5, stated"Tooley Street is . very quiet indeed, and no improvement in, prices can bo recorded. The general idea is that , thriro will bo no revival during tJio remainder of tJio season. ..Tho old tab 1 of tlio 'too high* prices at tho beginning of tlio season upsetting trade is repeated to mo week by week when-1 visit' Tooley iStreot. I horn appears to be still an accumulation of butter in store; Th'cro is 110 doubt that 'New Xca- ' land butter has fallen behind this season sadly, and that tlio explanation of that is the greater percontag'o of moisture. I am' Informed that in ■ securing • this moisture tho general quality (of the butter is injured at tlio factory. In the blending process here, with approved machinery, tlio quality does . not suiter by tho added, water. There 13 • littlo dilferonco between Australian and JNGW Zealand for clioicost grades. "All liui'opb is under snow, yet 110 lessening of supplies from tho Continent is to bo noted—their butter is produced regardless of weather conditions as if. from ,a hothouse. Commenting oil this report last week to reporters of tho ■ "Herald, 1 Sussex Street merchants unanimously agreed- tliqro - wcro brighter prospects in the ifnturo.' • Oho merchant, in giving his reason for tho present stato of things, said that it originated through the London prices last season being. over nominal, while this year they were much lower. Nevertheless, tho average net result of tho season's operations would, ho considered, givo a .satisfactory return to tho Australian .producer. . AVhilo Sydney values were, particularly early in tho season, held on 100 high a scale, .London, on tlio other hand, has been below tlio' average ruling or last' year. Tho lower prices which have been achieved thero wero largely duo to tho lack of information as to the production on this side. When our autumn values, ruled up to 2005.; the largest multiple, s'toriAScopers Wcro quito satisfied that there would bo no spring, butter from Australia. They-bought hoa\;ily of Siberian for storage which, ftf ' course, has now to be cleared with competition of. Australian. Tho present congestionin London- is duo to pressed trade conditions, and a reduction of the purchasing ]X>wcr of, tlio masses. Also to the mild season prevalent overywhere, which has enabled heavier • supplies than this timo last year to lw forwarded there »ro:u other colonies. Shipments of butter to London now on the water .wero / ■ very light. This, he concluded, would, liavo a strengthening effect on tho market. _ Another merchant took a lighter view of tho situation. He said it was very difficult to give absolute reasons for tho present depressed statu of the market; hut, as far as ho could malto out, he felt confident that tho market would continue to drag for another few weeks and then brighten up. A falling market this tiilic of tlio yeav \vas not out or tlio usual. Spring was commencing- in. Lon- - don, and fresh butter was arriving there from vory closo quarters.' The only reason lie could, . givo in regard to tho allegation that Australian .butter was Unsatisfactory was tlmt it was shipped from hero about tlio end' of . January to tlio licgitiiiing of February,' At that timo oui'-butterHyas iis good ' as it is u'o\v,' owing '"to thtiliot.'ahd mUggy

That class of butter, ho said, when put in cold storage did not koep too well, and usually developed fishy flavours. The butter arriving ill London for another month would hp considered, bo very fine. If anything no,r a . slight dro P tho supplies or this State, and from now on wo could ex- ?. gradual falling-off in the enormous quantities which have been coining in from all - districts lately. To test the conditions of the London market, he sent the following cable on Fnday last:-"At what price cai you- sell c.i.f. Y. hat is the immediate future prospect?" The Aply ho received was:— Shipmente within a week, 86s. per cwt., c.i.t.e. Wo have a poor opinion of the near future of the market." He explained that after selling and landing expenses had S (jji P nco was equivalent to 78s.