COMMERCIAL

Hokitika Guardian, 16 April 1932, Page 6

COMMERCIAL

PRODUCE PRICES. IN HOME MARKET . Butter. The most noticeable feature during th<> month has been the continued decline in Danish butter from 128/- to 117/-. Since February 19th Danish butter has declined from 100/- to the present level, showing a drop of 38/-. During the same period New Zealand has remained steady between .107/- and 112/- showing comparatively small Hum nations. This, we think, goes to show that the margin of difference in the price of New Zealand and Danish butters on the British market, is governed very largely TTy the question ot Continental demand. In the middle ot February, there was a definite Continental shortage and consequently the Danes were able to force their pr:“ in the United Kingdom to a very high level, as compared with New Zeabuui and Australian butter, but as soon as that Continental demand decreased and the Danes wore compelled to ship their ordinary quantities to the United Kingdom, the big difference *n price rapidly disappeared, until at the present time, there is only a'margin of 7/tn 8/-. With the 10% duty on Danish butter.it is doubtful if the Danish farmer is receiving as much for his butter-fat sold to the United Kingdom, as the N.Z. producer. The market for New Zealand butter has remained fairly steady throughout the month. With the slackening of the Continental demand, the market was quiet and slow towards the end of .March, hut with the beginning o. April, a firmer tone became manifest. Messrs IV. Weddel and Co. Ltd’s latest advices state that the butter market is improving on account of the continued decline of grading in Australia-, due to droughty conditions. Messrs W. Weddell and Co. expect a firm market: with possibly higher prices. Another interesting feature has been the sharp advance in Canadian values, from 22 cents at the beginning of March, to as high, ms 27 cents at the end of the month. This rise in the price of Canadian butters is very welcome. We have been anticipating that possibly Canada and the United States would he compelled to come on to the world’s markets for butter, hut up to the present there has been practically no inquiry from these countries, although Australia is now shipping to Canada small parcels on consignment, to test the market. Forward Butter.

There has been some activity amongst forward buyers of butter during the month and more particularly during the past week. Considerable quantities of butter, April. May. June shipments an c [ “make” have changed hands on the basis of 1 Ifd i'.o.b. * Cheese. The eliesee market has been quiet and steady throughout the month with a distinct improvement in tone, and slight' rise in prices early in April. The stock position of cheese in London is very sound indeed, as at the present time the stocks of New Zealand cheese are only about half what they were at this time last year. This feature i" somewhat counter-balanced by the fact that there are 6,000 tons more awaiting shipment in New Zealand than at the end of March last year, but with the falling off in production in Taranaki and the Waikato and parts of the 'Wellington province, it is more than likely that b v the end of' the month, the stocks in New Zealand will net he any Heavier than they were at the same time last year. Forward Cheese.

There has not been very much forward activity in cheese although spasmodic inquiries have been made at round about 6/d and some sales have taken place at tin's figure.