PRODUCE PRICES

Hokitika Guardian, 15 April 1930, Page 7

PRODUCE PRICES

butter

The market has, unfortunately, con tin ued its downward trend and then has been a 'steady fall in quotations foi New Zealand butter in company witl. Danish and other butters. Messrs W. Weddel and Co. Ltd., cabling on the 2nd of April, state that in spite of tin fact that the retail prices have been reduced to Is 4cl and Is od, the market still shows no signs of stabilisation. One of the main factors in the coiitm ued low prices is the very mild wintei iu the Northern Hemisphere and tin large Continental and Irish production. Buyers are of the opinion that the in creased production in the Northern Hemisphere is a forerunner of largely increased shipments of the U.K. and consequently is still pi eventing any confidence on the part of buyers. Th position of stocks in America is causing a good deal of uneasiness, in tin butter world as at the beginning of •March, there were approximately 15,000 tons surplus on hand as compared with the normal American stocks al that time of the year. There has been a general fear that possibly these American stocks might be shipped to the U.K.

FORWARD BUYING

There has been no enquiry whatsoever from buyers in the U.K. for forward butter and although there hasbeen a small Canadian enquiry for April and May shipments, not very much forward business lias been done. Some few thousand boxes have been sold -for April shipment at around Is lid per lb. and although buyers were inclined to pay this price for May shipment, their ideas are now on the lines of 1-s Id per lb. f.o.b.

CHEESE

As will be seen from the above figures of arrivals and gradings, the statistical position of New Zealand cheese is much stronger than is the case of butter. However, owing to the slackness of trade in the United Kingdom, retail prices have been reduced to lid. but even with the lower prices, there does not seem to be much prospect of an improvement in the position at the larger buyers still lack confidence to buy any quantity of stocks.

GENERAL

The outlook for neither butter nor Hieese can he considered encouraging. The general financial world depression is having n disastrous effect on all markets. It is as well to note, however, that the fall in prices of dairy iroduce, taking the prices at this period as against the same period last vear, is not ns great as in other commodities. The approximate average decline comparisions are as follows: Hides 30 per cent., wool 50 per cent-., tallow 25 to 30 per cent., butter 25 per cent., sheepskins 50 per cent., cheese 12 per cent. Tn view of this the fact that Danish hatter has fallen 38s per cwt. since February as against New Zealand's fall of 245, we cannot agree with the claim made in some quarters, that the fall in dairy produce is due to the present methods of marketing. At the present time it is impossible to forecast what the movement of the butter and cheese markets is likely to he, hut there is a continued heavy increase in production in New Zealand the stocks still to he shipped are very much heavier than in previous years. The depression in prices is not confined to '•he United Kingdom lmt is world W’do, but it ‘s to be hoped that with the lower retail price for both, butter and cheese in nearly all markets considerable impetus will he given to consumption, and (lie heavy stocks in all countries greatly diminished.