BRIGHTER BUTTER PROSPECTS

Shannon News, 23 December 1924, Page 3

BRIGHTER BUTTER PROSPECTS

A very much improved tone in the butter market is indicated by the many, offers of forward buying that were in circulation for the last'week-or-.50.! F.o.b. offers of 1/5J (187/6) and 1/6 (191)/.) as far in advance as February shipments were made and no doubt sales have been effected at these figures. / In the face of recent happenings, it i 8 evident that the danger and scare of an early collapse of the butter mar-, ket was very much overrated, nor does there appear to be much justification for the reduction, in advances to 1/2 (150/-) by London agents. Under pi’esent conditions, the supplier of the , local market is a loser \vhen compared Awith export prices. Local prices will .barely net 1/5, a figure at which it has been for some time, while butter shipped •at tne sam e time could no doubt be sold today afloat at Id to ljd in advance of this figure. - The supply of the local markets, which has been a fairly remunertiiive one during the- last few years is being very much overdone. A number \of local firms, controlling the ;Ncw Zealand supply and; seeing the advantages thereof, secured the output of a Humber of butter factories by guaranteeing to sell certain qualities for local consumption. The result was that mucli more butter has been so. guaranteed -than the ..New. Zealand demand can absorb, hence , the lower prices.