PRESENT BUTTER PROSPECTS.

Dominion, Volume 2, Issue 511, 19 May 1909, Page 10

PRESENT BUTTER PROSPECTS.

STRONG POSITION OF HOLDERS.. EFFECT OF. THE CHEESE BOOM. ■. During tho past week there has been noj •falling back in the excellence of the winter outlook for butter from tho producer's standpoint. If anything, tho position of butter-holders has strengthened. Tho dry woatlier that is curtailing tho output . in'Now South Wales-continues, and prices there bavo slightly increased.' Sellers of butter.in Sydney are asking 116s. per cwt., and aro repurchasing from Melbourne cold stores ,supplies Which they had lately sold to, Melbourne agents. Tho higher rate now ruling m Sydney is at a point whero a diversion- of South African orders to New Zealand might bo effected. Sydney . value of butter f.o.b. for South Africa is now practically 12Jd. per pound. l To secure this South'.African trade tho New Zealand quotation would need to be not higher than 12d. f.o.b. in JNcw Zealand, or its equivalent'of 12Jd. f.o.b. Sydney. This is a halfpenny per pound mora, than tho quotation (llsd.) now ruling be-' tween agent and grocer in New Zealand for patted butter. But agents expect Jd. per pound for tho patting of this butter,' so that the net bulk vahio for tho Now' Zealand trade is thus only lid. This is thereforo one penny per pound less than tho value f.o.b. for South Africa. At present thoro is no sigh of any diversion or.tbo African trado from Sydney, but on the figures stated that, result might reasonably bo expected. Tho effect on tho local market should then be a riso of a penny per pound. Meantimo, however, better woatlier in Australia may alter tho outlook.

. The prospect of the New Zealand winter output being only moderate is unchanged. One of, the large cheese factories which recently invited offers for its May and Juno outjiut of either butter or- cheese decided, on tho replios recoived, to make cheese only. Probably other cheese faciories will have made similar decisions, and'the butter available this winter will be reduced accordingly. The unusual _ preference for cheese-making this winter is duo to the singular. manner in which prices for that article ■ are ■ being" maintained and oven improved in England, in ispite of the 'fall in butter. There is a .shortage in tho Canadian cheese putpu.t, and the recent expectation of' a fall has now changed to one of a further increase. The cWso industry is certainly Laving a fins run.. ■ ■ . .