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Hokitika Guardian, 21 November 1924, Page 2

Tin: gradual decline in the London butter market this mouth from about 22-ls per cwt to 21 Os ]<m cut and now to 2()0s. bears out the opinions expressed liv ex|RM t.s earlier in the season (says the "New. Zealand Herald”). The range of value this season has been higher than those during the similar period of last season. This was due to the great scarcity of choice butter offering and the large purchases by Germany of Danish and other Continetal makes. The recent decline in the overseas market is stated by experts to be due to the expected arrivals of heavy shipments from New Zealand and Australia. The Dominion production to date this season has reached record dimensions and tho Australian output is expected to he a record. An expert in the industry who is conversant with conditions in the Commonwealth stated the other day that the season had been exceptionally favourable for dairy production in Australia and large shipments were being made to England. The conditions were reflected by the prices realised for butter in tile various States. Last week in Sydney and Brisbane the wholesale price of butter was 10-ls per cwt. The price in Melbourne was 150 s These figures represented Is -Id to Is 4}d per lb and were substantially lower than New Zealand wholesale quotations. Notwithstanding the increased output from Australia, added the speaker, he was of opinion,

that no serious drop in the London market would take place until after Christmas. In the event of Danish butter continuing to he largely absorbed on the Continent producers in New Zealand could, look forward to a satisfactory season.

The high prices obtained for wool at the Wellington sale this week, were, according to those studying the market, not unexpected. Those connected with the trade have for weeks past been predicting that unusually high prices would rule this season, and the opening sales in Australia showed how krci was the demand for wool. There is a world-wide shortage of wool and an ever-increasing demand for it. Business men connected with the wool trade who were seen in Christchurch this week, said that they could not express an opinion as to what the actual advance had been in Wellington until they had received fuller particulars and details as to the prices realised for the various dips. One business man said that although the prices obtained in Wellington were gratifying lie thought they were getting dangerously high. He hoped the high prices that seemed hound to rule" in New Zealand this season for wool would not lead farmers into speculation in land and stock. It was just this sort of speculation that had ruined many farmers four or live years ago. There was no doubt that unless something unforeseen happened New Zealand was in for a great season. There was an abundance of feed throughout the eotinlry, the price • million was good, atnl already the export buyers were offering lid a lb. fur lamb. Hut in boom periods there was always that danger of speculation which might result in tin l 'ruin of many. 'Personally, he thought that the price of wool would continue high this season, hut later on, when a large (|Uanlity of Wool was being bought weekly there would he greater difficulty in arranging finance and the exchange problem was also going to he dillieult to solve. These factors might have a steadily effect on prices.