BUTTER MARKET

Dominion, Volume 20, Issue 53, 26 November 1926, Page 7

BUTTER MARKET

RISE IN LONDON PRU&PECTS IMPROVING Information was received yesterday by the Dairy Board that the buttyi market in .Loudon showed an improvement, and pi ices, had been advanced by the joint-committee Is., making finest 1515., and first grade 1525. Stored butter had firmed to Ills, to 1465., indicating approaching exhaustion of these stocks. In explanation of the position, “The Dairy Exporter,” official journal of the board, says: “Attention is naturally concentrated on the London market. The board’s policy has been functioning for two full weeks only, and the considered view of the London manager, en latest cabled information, is:—

“In view all circumstances and considerable sales of old season’s butter, our opinion is that the sale of board butter and cheese it satisfactory.

Press and trade reports, as published, have sought to suggest that the board’s sales were negligible. That is not so. It must be remembered that on the

point of salee the position is now reversed from the former state, It is the board which now has exact market information and fullest statistics of the sales of its own produce. The sales have been considerable and satisfactory, and it is interesting to rote have shown an average superiority of a few pence over the prices nominated by tho joint committee. This price superiority shows that there is a healthy demand for new produce, and that the orices are not restricting sales because juvers are paying higher money.’ The rise in prices now reported may be taken as an indication that- stored butter, for practical purposes, ns a considerable • factor, is at an end. It is pdinted out .that there will be an appreciable gap in arrivals between the Remuera on November 14 and the lonic on December t. This interval will give a respite for the consumption of old season’s stocks at the reduced retail price of Is. sd. and permit of concentration upon new season’s. The Danish supply has slightly dropped on latest reports, and a larger quantity is being sent to Germany. Four weeks ago Danish production' was 2579 tons for tho week, of which 78 per cent, went to Britain and 21 per cent, to Germany. The price then was 180 s. At the current 170 s. level Denmark is sending 30 per cent, cf her make of 2175 tons for the last week to Germany, and only 66 per cent, to the United Kingdom. This will tend to help the market, which will probably firm still further.

Tiie cheese position is not so healthy at the moment, and tho market is reported "sick,” with sales down to 82s. 9d. Stocks in sight on October 1 were, it is shown in the report of the board’s London manager, 2090 tons in excess of those at tho same period the previous year. The resumption cf work in mining districts, of course, will help matters, ns miners are large consumers of cheese, and the forward position may bo regarded as sound.