WELLINGTON NEWS

Hokitika Guardian, 3 July 1928, Page 4

WELLINGTON NEWS

LONDON BUTTER MARKET. (Special to “ Guardian.”) WELLINGTON, June 30. All butters are firm, New Zealand sorts rising 2s per cwt. bringing the price of salted up to 176 s to 178 s. The market has been exhibiting a firming tendency and it is difficult at this distance to account for this. Mail advices for some time past were to the effect that Eourpean climatic conditions were favourable and it was anticipated that there would be an increase in production. For a time this was realised, but during the first fortnight in May the weather conditions became unfavourable. which caused some speculation and forced up prices. We can only sin mise that weather conditions are again unfavourable and speculators have been operating treely thus taising the prices, it is evident that the niit:ook is for a continued firm market, for :t has been found necessary to raise the retail price which is now Is Oil per lb. Messrs Dalget.v and Co. Ltd., in then dairy produce circular dated May loth, remarked that production in the North, ern Hemisphere was an uncertain factor. as it was considerably influenced |)v weather conditions. With hut moderate imports in sight and unfavourable weather reported to he curtailing probation at present in Denmark and 'ther parts of Europe, the demand tor mtter from Germany has been stimulated. The firm adds: “Opinions and forecasts are various, hut we have the positive experience of the past few months that the retail equivalent of current wholesale prices, is as high as the public can afford, so that materially higher prices can hardly be expected to he maintained unless supplies become restricted from some cause al present unseen.” Ihe retail price is now raised and this is hound to check consumption and cause supplies to accumulate. The butter market is a tricky one, and it is difficult to tore-c-.ist market movements for oven a few weeks ahead. At the opening ol the past- season it was anticipated that there would he a serious shortage from Australia, owing to a drought affecting the producing states. Soon alter the season started there were copious rains production expanded and the forecasts upset. The same thing has happened ill respect to the output in Europe. Unfavourable weather has rendered worthless the earlier predictions. It is to be hoped current prices will be maintained.

THE WOOL -MARKET

There continues a struggle between spinners and topniakers. Ihe formei want prices reduced, being forced to seek this by the manufacturers who in turn are being pressed by the piecegoods merchants. It is stated in a late cable message, that some Bradford topniakers are making concessions, but the majority firmly maintain former prices. Writing prior to the May series of Loudon sales the Bradford correspondent of the “ I'inancial Times” remarked that the volume of new business in yarns and piece-goods has been so disappointing that prices of tops and yarns have lost ground which lias been a shock to those who preached that the scarcity of wool supplies was likely to establish something akin to a famine standard of values. Some of the most important topniakers in Bradford have declined to accept the lower prices being taken by financially weaker firms. Titov are content to bold both their wool and their tops until later in the year, fully convinced that the rate of consumption will be maintained on s/iicli a level as will carry prices back to the highest point made this year, if not in excess of it. They also believe that speculators who are putting wool into the coming sales will withdraw it, as they have done before, if bidding is not to their satisfaction. Even if they do the power of the consumer will not be broken, and in the final issue prices must depend on the demand for a material rather than on the quantity available. If material is not wanted it lias no value. Whether or not the prices of tops, yarns, and piece-goods will bo higher later on will depend on the orders placed with firms with processing machinery, and the outlet in that respect- is not encouraging. The more immediate matter of interest is the attitude which the holders o[ wool will adopt at the coming London sales in face of the manner in which the position lias moved against them recently. No one expects anything in the nature of a slump, but the weight of opinion inclines to there being some reduction of prices, and it seems probable that there will be a further drop at the July sales.