PRODUCE REPORT

Hokitika Guardian, 19 December 1933, Page 8

PRODUCE REPORT

LONDON MARKETS RECEIVED

CJiIIISTCH UJ.ICII, December 12

Messrs A. H. Turnbull and Co. re-

port : j Butter: The spot stocks of butter in ! the United Kingdom are - rather lower than they were at this time last year, but the very heavy quantities afloat | together with the increased production in both Australia and New Zealand have a tendency to make buyers cautious. As a result the market during I November weakened steadily, buyers adopting the policy of holding off, in , the expectation of a continued fall in prices. Early this' month, the market steadied at round about 71s to 72s anu more activity was noticeable. Messrs W. Weddle and -Co. Ltd. cabled us that they expect a steady market from now until Xmas.

| Forward Sales: During November very little business was done, as buyers were not inclined to operate.

| Toward the end of that month and early in December, fair quantities of butter were sold at from to 8-Jcl f.o.b. for December-January shipment. Buyers are still available at these rates and for limited quantities, but there is no general activity.

Australia: Although the Australian production has improved very considerably since the early part of their season, their production up to the end of November was still some 8000 tons short of their record last year. Victoria has now definitely passed the peak arid despite the fact that late ’ rains have enabled Queensland and New South Wales to increase on their early production the total figures for Australia disclose a gradual decline. The Australian Board, after holding its fixed price for c.i.f.e. business at well aoore buyers’ ideas of value for the past two months, dropped its price to 69s on the Ist December which was practically equivalent to the buyers’ ideas of value of New Zealand butter for forward shipment.

Postponement of Shipment: The Australians have apparently now decided to. postpone shipment of approximately 20 per cent, of their production until after March. There seemed to be fen general feeling in New Zealand what this was' a ’ move towards quotas, but from what we can gather it does hot appear .that there was' any idea; of Australia definitely adopting a quota; It" was merely an idea that shipment should be postponed so that arrivals of Australian butter would be spared in much the same Way that the New Zealand Dairy Board has spared the arrivals of New- Zealand butter for many yearn I past, it is>a : litle difficult to forecast I what the: result -of this postponement of shipme it ;will be, and the success of the plan will depend very much on the weather-conditions for the Northern Hemisphere Spring and the Southern Hemisphere! Autumn production. 1 America I ;'' At the end of October, the New Zealand-Dairy Produce Board advised that stocks in the; United States were approximately 42,000 tons greater than at the same time last year. Although Airf.i»ioa has herself from : the rest of the. world’s markets as far as butter is 'Concerned, this heavy quantity must sooner or later affect the world markets. With the depreciation of the dollar, the Americans may be inclined to export a portion of this surplus and already mention has been made in the. press, of the possibility of butter from America being exchanged for exports from Great Britain. Cheese The cheese market has shown a little weakness in sympathy with butter, but has maintained a much steadier price level. Messrs W. Weddel and Co. Ltd. cable us that stocks of cheese are low but the heavy production ih November and December in New Zealand and large quantities afloat will probably prevent any rise in prices. The market however, has been steady and-consumption good. No interest has been shown by forward buyers.