DAIRY PRODUCE

Hokitika Guardian, 17 December 1924, Page 4

DAIRY PRODUCE

-OA SUDDEN IMPROVEMENT. AL'CTCLAND, December 10. A sudden change in the tone of the butter export market of great importance to New Zealand producers took place nt the end of the week. This occurred after nearly three months of inactivity on the part of London buyers. On .Friday offers from London were circulated among the factories, commencing at Is o'Jd per lb f.0.1i. for butter as far in advance as February shipments. As shipments during February will clear up the heaviest portion of the Dominion's output of butter, it is obvious that this changed condition of the. market- means much to the producers. For a month past the fastoric.s had been vainly endeavouring to sell the December make of butter at Is ."id per lb f.0.1i.. being approximately .‘id per lb below, the average London price for that -Period, fn view of the statistical position, showing a great increase in supplies of butter this season from Australia, as well as a substantial increase in the New Zealand output. the weight of which would commence to he felt in Loudon early ill the new year, havers evinced no interest in three offers, as a slump in values was anticipated after the usual Christinas demand had been satisfied. So far mi information has been received giving the reason for the Midden strengthening of the forward market, but in view of the demand for butler from the Continent for some mouths, il must he assumed there is evidence that the demand will not only be maintained but increased during flic Northern Hemisphere winter and early spring, and that values may reach even higher limits than last week’s forward offers indicate'. These prices will naturally affect the value of butter locally. In anticipation of the low values ruling in London in the new year, the price of first grade hut ter lias fallen on the Auckland market to the equivalent of Is -Id per lb f.0.1i. AVitli present offers of Is GRI per lb for the same quality butter, it is only reasonable to anticipate an early readjustment of tbe local price.