WELLINGTON NEWS

Hokitika Guardian, 11 April 1925, Page 1

WELLINGTON NEWS

THE BUTTER MARKET. (Special to “Guardirji”.) ,] WELLINGTON, April 8. d The shipments of dairy produce froi r N.Z. are beginning to contract becaiis ” the season is now on the wane, and i y discussing the matter with a gentle ~ man closely connected with the distri i hution side, he remarked that the sea son would he remembered for its thre •, outstanding features, viz., extrem - price fluctuations, tlie great disparit; 1 in price of Danish and N.Z. butter ' and the fact that Australian butte for the first time in the history of th< 3 trade sold on a parity with N.Z. Price fluctuations occur every season, bill ■ they were rather more pronounced ii I the present season probably because there was greater irregularity in sup plies. Tho great disparity that exist , ed between Danish and N.Z. butter al l one time being as much as 50s pei cwt., was a new experience. It is conceded that because of its freshness Danish is perhaps worth 10s more than X’.Z.. and that was about tlje average difference until this season. 01 > course it is recognised ihat Danish butter has a stabilised demand in the North of England for a certain quantity, and price does seem to seriously affect this demand. Rut what made Danish butter maintain so wide n margin over the X.Z. product was the extraordinary demand from Germany which was sustained for several weeks. Danish supplies were in consequence short of demand and this held up prices. Emphasis is given to this -by the Hoard of Trade returns which show that during January the imports of Danish butter into the United Kingdom totalled HS,922ewt as compared with 130,318cwl in January, 1021, while the imports from Australia were 152.352 cwt against 50,552ewt. and lrom Xew Zealand 113,583ewt against 120,OOlcwt. In tlie first month rtf this year the supplies from Australia exceeded that of any other country and the big increase from Xew Zealand and I lie Common wealth depressed prices, for it was in the third week in January that the low record of lofis was registered. Australian butter lias improved very considerably in quality and the British importers who handle the product contend that it is every hit as good as Xew Zealand, at all events the “Kangaroo” brand has established a name for itself this season. This business man maintains that the lmiter trade is in ibe transition stage. Two or three years age Britain depended largely on Xew Zealand, Australian, South Africa, Argentine and Denmark for supplies. In the 1923-21 season Australian and South African production 101 l away. Last season supplies began to come in in volume from Latvia, Esthonia, I 1 inland and Siberia. The Baltic States and Siberia had only exported about .I.', per cent, of their pre-war quantity. It is anticipated that this season they will increase their exports to 25 per cent. Canada is exporting more, so is Argentine, and in all producing countries great attention is being paid to quality. The more farseeing British merchants are not worrying much about control, as they "ill have such a wide range of butters, to select from. Any control of an irksome nature, on the part of any one country will not trouble Ibein in the least. All that will happen "ill he the dropping o! that parlieulai hullu ami the pushing of others. HELD OVER- WOOL. The continuous drop in the values of wool which made the season such a disappointing one. resulted in a considerable carry over. A good deal ol wool was withdraw from sale at the March auctions, -about .30 to 10 |>or of the offering being passed in. |, | s difficult to say " lull the total .ol ihi. would he, for with it must he included the hulk of the wool produced m the Poverty Buy nnd Bay of Plenty districts for there were no sales held al any convenient, centre lor these dis-til,-Is. The wool shipped to London for sale will he offered, at least some of ii, at the series to he held >uoxt month beginning on May ■>, hut tlioio is little hope of crossbred wool seeing a„v improvement, and merino wool may also he affected. The European money markets are too seriously disturbed to admit of any buoyancy m (he wool market. Finance has been (he dominating factor all along, and the French financial crisis has the elements of very great danger in it, for it must have far reaching eltocU Then again there will ho consulera >h inducement to operate sparingly m view of the European and North American clip being available in .Tune There will lie no shortage of crossbred wool, even if there does happen to he a scarcity of merino. If America come:into the market buoyancy may lie imparted’ to it, but the American position has been an enigma to the trade Supplies of wool in the United State? are said to lie very low, and yet Amor- ' jean purchases of foreign wool have been very light, The American woo clip this year will show some expnn- , sion. hut even so American "ill need to import a heavy weight of wool When America comes-into the market , business will improve, in the meantime the outlook for the May sales is not particularly bright,