ACTIVITY IN BUTTER MARKET

Dominion, Volume 28, Issue 105, 28 January 1935, Page 10

ACTIVITY IN BUTTER MARKET

New Zealand in Demand SUBSTANTIAL SHIPMENTS TO NEW YORK New Zealand salted butter on the London market is now quoted at 84/to 86/- per cwt., and unsalted at 88/to 90/-, the highest figure recorded since the end of October. 1933. when 90/- to 96/- were the prices ruling. The market is reported to be very firm and active with an advancing tendency. On January 10 New Zealand butter rose sharply to 84/-, under an active demand, but prices then dropped slowly to 79/-, though there was no apparent reason for this setback On January 17 the market again .irmed and prices have since been steadily rising under an active demand, stimulated by New York buying butter both on the Loudon market and in New Zealand. . . The Commonwealth and Dominion Line motor ship Port Gisborne, which is to leave Auckland on February 5, will call at New York with a shipment of New Zealand ■ butter. Before rhe vessel was diverted to New York, the Dairy Board guaranteed 10,000 boxes as a minimum, but on Saturday it utts reported that 24.000 boxes had already been booked. It is anticipated that the vessel, when she sails, will carry up to 30.000 boxes, all of which will he shipped on consignment. In addition to the Fort Gisborne s shipment, 5000 boxes of butter for New York will be taken by the Canadian Britisher early next month. , Sales have been made to New York at 9Jd. a 'lb., and forward buyers Cor the London market are also operating at 9j{d. . . It is unusual for butter prices to rise at this time of the year. Twelve months ago the market was quiet at 67/- to 68/-. Heavy stocks were afloat and in sight, while the quantities in store in Britain were rapidly increasing. At the present time the position, from tbe producers point of view, is distinctly more healthy. Though Britain’s butter imports last year showed :i heavy increase over 1933. yet the December figures showed a substantia) decrease compared witli the previous December’s, due principally to decreased imports from the Continent, Owing to increased German buying, and natural production decline. . : Dry weather conditions in New Zea-1-ind have caused n decline in production here, the real effect of which has overseas, but which in decreasing the full season’s exports has had a lavdurable effect on the market. The Imperial Economic Commit tees estimate of stocks of all butter in store is 470,311 boxes, compared with oJI.OCS boxes a year ago, and a year ago, and kyquarthefM a9A.i,\o at' the end of last September. New Zealand butter in store at present is 4932 tons, and Australian 3641 tons, compared with 3200 tons New Zealand and 6650 tons Australian, a year ng;'. The quantity of butter in store is steadily decreasing, instead rff, as was the case a year ago, increasing, ami with decreasing shipments from New Zealand, the in store position shouh. remain healthy. This, in addition ta American inquiry and increased hetman buying, should tend to keep the London butter . .arket firm at the enhanced values now ruling.