LONDON BUTTER VALUES

Hokitika Guardian, 11 April 1929, Page 1

LONDON BUTTER VALUES

CAUSES FOR DEPRESSION. When New Zealand factories made f.0.1i. sales early in the season at prices that were eminently satisfactory to producers. Mr W.. Gocdfellow. managing director of the New Zealand Co-operative Dairy Co., issued a warning that the stocks then being disposed .of might subsequently be made use of l*v big London operators to bear the market. In this connection the report issued by Samuel Page and Son, London, brokers, is of interest :

Writing on February 13. when tl>? downward movement had set in. they stated that “during the past four weeks lack of interest on the part of buyers has been the dominant feature (.‘I tile market" for New Zealand and Australian butter. This has been partly due, as far as some of the larger operators are concerned, to the arrival of goods they have bought forward. These purchases showed a decided advantage to the buyers at the date when the shipments came to hand, as the cost price was considerably below current values. It may be said such sales relieve the market o| the quantity they represent, and that, therelore, consigncd goods will benefit by the consequent smaller offerings. Io some extent this view is justified, but there is another aspect that shippers do well to consider. The if act that certain buyers, and these probably some of the more important, have their requirements largely discounted, is a source of weakness to the market. It is not only that sellers are to this extent deprived of an outlet, hut it lias also an adverse psychological effect. I.ess business is taking place, and this tends to depress the general tone.” Another factor emphasised by Messrs Page and Son. was the marked falling off in the consumptive demand since the above was written, the continued heavy arrivals ol New Zealand and Australian flutter, coupled with the diversion to Britain of Danish butter, usually sold to Germany, have all tended to increase tin' weakness of t market.