A Changed Tone in Butter Market

Sun (Auckland), Volume 1, Issue 50, 21 May 1927, Page 11

A Changed Tone in Butter Market

ADVANCE OF 127LOCAL PRICE NOW 1/8 A LB. Optimism now rules where pessimism largely held sway in regard to New Zealand butter marketing prospects a few weeks ago. After holding firm in the vicinity of 152 s for several weeks the market has advanced during the last fortnight to touch 164 s this week. This places New Zealand butter practically at the top of the market, equalling Danish. Australian is selling about 2s lower. Cheese has also firmed, and the latest quotations to hand are 84s to 85s for New Zealand coloured, and 85s to 86s for white.

The reason for the sudden change of tone from the depressed state registered two months ago is hard to judge. It is apparent that the Northern Hemisphere summer production has not come up to expectations and is not influencing the market in the manner predicted earlier in the season. Again, the reported lower quality of the Danish product is also reflecting in favour of New Zealand.

Another factor influencing the market is the demand from Australia and Canada. The latter country is still inquiring for butter and could have taken considerably larger quantities in June had space been available. Contracts are already being negotiated for July shipments.

Corresponding with the brighter tone on the Home market the factories operating in Auckland announce a further advance to take effect from Monday next. The new retail prices will be:

Superfine, Is 8d; first grade, Is 7d; and second grade, Is 6d. “The rise was due to the better position on the Home market,” said Mr. N. V. Le Petit, Auckland manager of the New Zealand Co-operative Dairy Company Ltd, “and had been forecasted by his company several weeks ago.”