BUTTER PRICES RISE.

Shannon News, 31 January 1922, Page 3

BUTTER PRICES RISE.

WELCOME NEWS FROM LONDON. Mild excitement has been caused in Palmerston dairying circles, says the Standard, by a report that the price of New Zealand butter has undergone a substantial rise. As much as 160/ per cwt had, it was rumoured, been paid for shipments disposed cf during the last few days. As the result of inquiries in reliable quarters a “Standard” representative was able to confirm the report from at least two sources. Mr K. McDonald, local representative of a London firm, said he was in receipt of cabled advice from his principals that within the last few days sales of New Zealand butter had been effected at the following prices: Salted 140/ to 154/ per cwt, • unsalted 160/. These figures represented actual sales of butter shipped from New Zealand on open consignment. CONFIRMATORY ADVICE. The foregoing prices obviously relate to high first-grade quality butter, but nevertheless they represent big advances- on the prices ruling in London a few days ago, which were 136/ and 138/ per cwt—an advance of from 6/ to 8/ per cwt on the previous week’s quotations. Added weight is lent to the cable quoted by the fact that the New Zealand Farmers’ Dairy Union have been advised during the last day or so that a small parcel Of unsalte-1 »m----ton—some 6£ tons—made at Palmerston North, had been sold by their agents at the rate of 155/ per cwt. It is significant to record that Mr McDonald told our representative that the sales reported in his cablegram may not have been made in London. His principals had been in the habit of selling at Liverpool, Avonmouth, Manchester and other British ports, at which markets higher figures were often realised than those ruling in London. Of course, in the absence pf details it would be unwise to jump To the conclusion that the market generally had firmed at the figures quoted. It has to be borne in mind that it is no new thing for New Zealand unsalted butter to make sudden rises and fetch fancy prices, as it is used largely for blending, the bulk of it going to France, where it is blended with liigli-class fancy brands affected by the Parisians. Meanwhile further developments will be awaited with great interest. At the same time it is not anticipated that the reported rise in prices will affect next month’s advance to suppliers, as in order to be in a position to meet any sudden fluctuations in the market, the factories must allow a sufficient margin to come and go upon.

The latest return of sales by the Levin Dairy Company, received about a fortnight ago, show that these were made at an average of 130/ per cwt. That was for salt butter. The company does not manufacture unsalted. Mr Broadbelt, chairman of directors, states that since that return was received butter has firmed and advanced, in price, so that the next sales should be on a higher scale than those quoted above.