BREAK IN BUTTER PRICES

Hawke's Bay Herald-Tribune, Volume 81, Issue 44, 15 November 1937, Page 6

BREAK IN BUTTER PRICES

-Hress A«-»n.-

Further Drop of 20s Possible Before Christmas THE LONDON MARKET

(Bj Telegraoh-

- CorvriBtif.)

(Received 15, 1.50 p.m.) LONDON, Nov. 14. It is expected that the break in the prices of butter will be more drastic .than most traders have bargained for. A complete wave of pessimism swept the markets on Monday. Holders be-i came most anxious. Sellers' priees were reduced at the time in an attempt to find new business, Brices now are largely nominal. Australian impoxters are finding .difficulty in clearing current cdnsighments. There seems to be no doubt that the higher retail priees in Britain have aft feeted the consumption. Heavier ar-> rivals early in December may bring down prices a further 20 shillings be-. fore Christmas. Danish butter also- is lower. Germany is ref using to pay the full prices A further* setback has been suffered by New Zealand butter on the London market. According to a Press Association message sent from London oa Thursday, ehoicest salted was selling at . 138/- per cwt. This represented a drop of 7/- since the mid-Week quotation, and a fall of 13/- over the pfevious week. The market tone was weak; and it would now appear that, with the larger supplies of, new season 's butter from the' Southern Hemisphere, the market had lost its buoyancy. Australian was quoted on a par with New Zealand, and had_ also dropped 13/- on- the week. ; .Danish had - not declined to the sama extentj the fal| being only 8/6. •. Cheese values fell in sympathy^ although the market was steadier White was selling 6d* cheaper at. 73/4 per cwt., while coloured at 72/6 show4 ed-a corresponding decline." Australiafl white and coloured were quoted at 71/6 to- 72/- per cwt. The basic'xates fiXed uuder the guars anteed price' scheme, subjeet.to quality differentials, are 12/8 .for' butter and 70/4J for cheese per cwt., f.o.b., New Zealand currency. The equivalent" landed prices in London are 112/- for butter and 67/- for cheese. The guaran* teed priee for butter is equaFto 13.254 per lb., f.o.b., and the current Lpndon quotation* is equal to approximately 16.60d- per lb., f.o.b., New Zealand ports. The equivalent price ifor coloured cheese is 8.25d per lb., f.o.b., and' for white 8. 35d, compared with the guatf anteed price of 7,54d^