BUTTER PRICES.

Hokitika Guardian, 9 December 1925, Page 3

BUTTER PRICES.

FURTHER FALL IN LONDON. AUCKLAND. Dec. 7. Butter prices in London have registered another sharp decline, according to a commercial cablegram i-vcivcd in Auckland to-day. Butter is .pinlcd at 184 sto 188 s per cwt. against l!) ls last Thursday. Inc cablegram states that the market is slightly steadier. but there L “nothing doing.” J lie latest decline in the market lias been lairly rapid. A fortnight ago New Zealand butter was quote.! at lOiis in 2JBs. lietore that date tbe market bad been weakening since tbe peak prices oi 232 s to 23tis were reached tun month-, ago. That high level was icac!\cd under a threat of scarcity due to the sea men’s strike. Within a week, on October loth, blitter was hack to 2His to 2295. and subsequently. although there were several checks, bad lal'cn to 2U5s by November 10tb. Commenting on latest quotal ions a prominent exporter staled to-day that they could not la* rcgyirde.i as more than nominal. There was “nothing doing”; no business was passing in London, and the market would not be really tested until tbe new season's make commenced to arrive toward the end of tbe month. Dor iuslauee. ibe Tninui was due at London about December 1711 1 or 18th. I tie market was pi-neticaly bare ot New Zealand stocks at present, except for stale butter, winch bad been long m store.

PROSPECTS FOR NEW TEAR. 11A Al ILTOX. Dec. 7. Commenting on tbe slump on the London butter mnrke. Air (Liodlelh.w. managing director ol the New Zealand Dairy Co., said that while the London market was comparatively good at the moment, this was only due to the Christman demand. As soon as buyers had secured requirements to carry over the holidays it was obvious there would lie a substantial tall in tbe market. During January approximately M.li.V, tons of New Zealand and 7503 tons of Australian butter would be available to tbe British market. ’I he weekly constitution of imported butter in the United Kingdom was estimated at SCOO tons, ft was apparent Hull New Zealand and Australia would supple the total import requirements and in addition butter would be striving from Denmark. Argentine, and other countries.

The forward pool ion was lairly satisfactory, due to the reduction by approximately 29 per cent, ot the expoititble surplus from New Zealand. American stocks were considerably lower than last year, and there was u. possibility that u usiderablo quantities ol Danish and New Zealand would be required to till ibe American demand. It was exceedingly difficult to torecast tbe extent ot tbe .January fall m prices. Some authorities estimated Dgu the market would go down to 160 s or 170 s. However, these very low prices would, and could no doubt, lie obviated by tbe New Zealand factories cabling their London agents and fixing ibe selling price. In this way it might lie possible temporarily to prevent the market going below 180-. but without a central authority acting on behalf of the companies, action would be spasmodic and to a large extent ineffective. Mr Goodt’ellow said that this was another glaring instance ot toe me.— sity for absolute control. imu the Board had absolute power, it was impossible to do anything worth while hv simnlv tinkering with the market.