PERIOD OF LOW PRICES

Hokitika Guardian, 4 August 1927, Page 4

PERIOD OF LOW PRICES

FOB BUTTER AND CHEESE. (Exchange.) The definite trend of lower prices for butter on the London market is 'reflected in the latest market reports, the price being lower than has been the case at this period for many years. Fluctuations of the market are shown in the following tables, which show the top prices iin shillings per cwt) at this period of the year:—

FUTURE PROSPECTS. All reports from London describe idle butler market as quiet, yet there arc indications that tDi■- condition is only temporary, having been brought about by heavy European production. Private advices by the last mail are i ) effect that the Danes were in June lo.’lowing their usual policy of “ineet-ng the market” from week to wet'., despite the record supplies that were being poured into London. This ac-

counts for the very slight different'.":) which has ruled recently for Danish as compared with New Zealand. Al-

though the market has “ sagged ” under this unusual pressure, the ultimate result will be that the European season will end with clear boards for this country’s new season’s output. This viewpoint is confirmed by the fact that Too ley Street representative.’; have been offe’ing factories from Is 3jjd to- Is 4d for August to November make, the higher figure being equivalent to 167 s in London.

For cheese the prospects arc likewise good, as offers have been made at Fid and an increased offer of an additional one-eighth of a penny was received in Auckland last week. In a circular to shareholders Air W. Goodfellow. chairman of directors of tlie New Zealand Co-operative Dairy Co., said that marked improvement industrially in England warranted the prediction that cheese would give a better return to the producers during the coming

season. The casein market remained firm and sales were being made at very satisfactory prices. On the whole the outlook for the coming season was better than for several years. Milk powder sales were steady, continued Mr Goodlellow, and had been assisted by the recent sale of considerable parcels for Australian consumption. An additional factor of benefit to the producer is the fall on the exchange rate on drafts made in New Zealand on London, flight drafts are down to 7s 6d per cent,, which represents a big saving compared with the days when the rates were as high as 555.

li CTTE.K 1023 1021 1021 122': 1927 Xew Zealand 172 102 190 172 no Australia ... ] 02 IS 1 100 168 , no Danish 170 202 200 180 1 >9 CHEESE, 1923 1824 1923 1920 i;. 27 -New Zealand 112' BO 109 88 83 Canadian ... — 91 109 88 93