BUTTER PRICE UP

Dominion, Volume 28, Issue 91, 11 January 1935, Page 8

BUTTER PRICE UP

New Zealand at 84/LONDON ACTIVITY Purchases By New York New Zealand butter on the London market has advanced 7/- since tlie end of last week, and is now selling at 83/- to 84/- per cwt., tlie highest figure recorded since November, 1933. when 85/- to 88/- were tlie prices ruling. The market is reported to be very firm. Cheese also shows a rising tendency and is quoted very firm at 48/-. It is unusual for butter prices to rise at this time of the year. In the second week of January last year the demand was weak, and prices touched the then record low level of 64/- to 65/-. Forward buyers are again operating, and it is reported that substantial business hag been done at 9d. to 9[d. per lb. for January-February shipment.

The decline in production in New Zealand owing to dry weather conditions probably has some bearing oh London prices. Australian output to date, however, is well ahead of last season, and it is anticipated that the combined output of the two countries will about equal that of last season. The interest shown by New York buyers both in the London market and in New Zealand has also some bearing on the present firmness of the butter market. Parcels have already been sold to New York at 9d., and it is anticipated that fairly substantial shipments to New York are probable in the near future. Stocks of butter held in New York are only about half those of a year ago, while the present price is 32} cents per lb., compared with 19) cents 12 months ago. The shortage is due to widespread killings of cows and a dry summer in 1934.

Germany also is buying butter in quantities well in excess of those of a year ago, there being a shortage of fats there this winter.