COMMERCIAL ITEMS

Hokitika Guardian, 27 February 1925, Page 4

COMMERCIAL ITEMS

The following arc the top. limitations ini the London Market lor February

Butter - During the-week from the bt.li. to loth, there was considerable excitement in the butter market iu London and prices jumped up very suddenly and unexpectedly. The sudden rise was caused, generally, through buyers being caught short of spat sticks owing to a temporary shortage in arrivals. The market jumped from 160 s at the end ol the week to 108 s on the Monday, lids oil the Wednesday morning, and sellers were asking lS2s on Wednesday afternoon, I ltli. ilist. However, the rise had been overdone and some sellers on the 12lli, and Lilli, were pressing for sales at as low as 168 s. Since then there has been a general steadying.in values and the market lias (iiined to 170 s, according to our cable of the 2<)tii . It looks as though the market will remain hrm until the end of the month as the only February steamers not yet discharged are the ‘■Cumberland” and “Kualiino.”

With regard to March arrivals these will he particulaily heavy from the second week onwards, approximately 10,0:10 tons of butter coining on to the market within a few days. Forward butler- -When the’spot market made its sudden jump then* was, naturally, a tendency on the purl ol forward buyers to operate, and a certain amount of business was dune at Is Id up to Is -ltd f.o.h. for .laiiuurvFehruary make and shipment. However. the forward demand was not, sustained, and as soon as the spot market weakened, Forward buyers generally withdrew. It. seems as though forward buyers have not any great faith iu the market in view of the heavy arrivals of New Zealand butler during March and. April.

There is still a demand forward for unsalted hut,ter at. round about Is sfd f.o.h. for prompt shipment, but, buyers slimv little interest in unsalted later make. They are, no doubt, afraid that Australia will take advantage of the present premium for unsalted and by the time New Zealand butter is manufactured and reaches the market that the premium will have disappeared. Aastralia—Australia is still undergoing a very good season, and it is interesting to note that their shipments for damiray this year total approximately 10,6(10 lons as against 5.000 tons last season.

Cheese—Owing to the comparatively small arrivals from New Zealand to dtae. cheese is sfill remaining steady and there is a fairly firm tone iu the market. It looks as though quotations would remain steady until the end of March and April and it will l>e interesting to see whether the market will he able to absorb these additional quantities without showing any reaction.