Markets and Money

Sun (Auckland), Volume II, Issue 312, 24 March 1928, Page 13

Markets and Money

CHEESE MARKET FIRM HIGH GRADING RETURNS LITTLE BUTTER HELD Gradings of butter at the port of Auckland for the cun-ent season estimated on a butterfat basis amount to 83.180,7791 b, compared with 82,023,2621 b for tlTp corresponding period of last year. Thus, with the higher comparative values ruling even if the gain is lost during the closing months of the season, the aggregate returns to the producer should 'be considerably in advance of last season’s figures. The London market for butter is reported quiet at the moment, but certain firms forecast a revival of interest that should bring about a slight advance. Cheese meets with a firm demand and the market registers an upward, tendency. Canadian white has reached 110 s over the week. NEW ZEALAND SHIPMENTS An interesting review of the New Zealand position from the shipping point of view was contained in a report submitted to the New Zealand Dairy Produce Control Board at this week’s meeting. The report stated that there is little butter in stores awaiting shipment, with the exception of considerable quantities of butter which, after being received and graded for export during January and February, were withdrawn from shipment. No doubt the dry spell in February, combined with the low prices ruling up on the Home markets at that time, induced many companies to adopt this procedure. As is known the board’s freight contract calls for space to be booked six to eight weeks in advance. Space had therefore been booked in December, and early January for estimated gradings to the end of February. Upon receipt of notification of heavy withdrawals the board cancelled space bookings for no less a quantity than 70,000 boxes of butter. This space was eagerly taken by the meat industry, which, on account of the dry weather making food scarce, had much greater quantities of stock killed than was anticipated. With the improvement in the market at Home, probably due to decreased production and further accentuated by decreased shipments, many companies released their held stocks and wanted immediate shipment. Space that, as previously stated, had been given to the meat industry could not be regained, consequently it will be the end of April before much relief can be obtained for those companies who withdrew the produce from shipment at the end of February, though every effort has been made to obtain extra space in vessels now loading, but without much success. FORWARD POSITION It is extremely difficult to estimate what the grading will be for April to July, but after the shipments have been completed, it is almost certain that for May, June, and July the board will not have more than 300,000 boxes available for export during the three months, and 500,000 boxes -seems a rather liberal estimate. Last season 71,695 tons of butter—--2,867,800 boxes—were graded, and of this quantity it was calculated 2,700,000 boxes were exported to all destinations. * Assuming the gain of 5,000 tons in production to the end of February is lost between March, April, May, June and July, the total gradings for the season would equal last season therefore. it would be assumed exports will again be in the vicinity of 2,700,000 boxes; therefore if one deducts 50,00 boxes, which is the estimated quantity of last season’s butter shipped during August and September of this season, and includes in the estimated exports of 2,477,028 boxes to the end of April, 300,000 boxes for shipment during May, June and July appears all that will be available. MERCHANTS’ REPORTS Merchants report receipt of the following cables from London principals. Norden and Co., from Andrew Clement and Sons, Ltd., under date March 24: Butter: New Zealand, unsalted, 174 s (equivalent to Is 4.93 d f.0.b.); market quiet. Cheese: White and coloured, 100 s (equivalent to 9.05 d f.ovb.), market firm. A. H. Turnbull and Co., from Weddel and Co., Ltd., under date March 23: Butter: Danish, 192 s to 1965; New Zealand,* unsalted, 172 s to 178 s; salted, 170 s to 1745; market quiet. Cheese: New Zealand, white and coloured, 99s to 100 s; market firm. Canadian, white, 106 s to 110 s; coloured, 104 s to 106 s. SOUTHERN EXCHANGES YESTERDAY’S SALES Press Association. Wellington.—Bank of New Zealand, £2 19s; Union Bank, £l4 12s 6d; Dunlop Rubber (ord.). £1 Is 105 d; Wilsons Cement, £1 18s. Christchurch.*—Commercial Bank of Sydney, £26 8s 6d, £26 10s; National Insurance, 15s sd; Uqion Steam (pref.), 20s Id (two parcels); Tooth’s Brewery, 44s 9d; Electrolytic Zinc (ord.), 31s 6d; Victoria Nyanza Sugar, 49s 9d (two parcels); Commercial Bank of Australia, 27s lOd; Union Bank, £l4 12s 6d (two parcels). TO-DAY’S SALES Christchurch: Commercial Bank of Sydney, £26 16s; Refrigerating Company (10s paid), 7s 7d (two parcels); New Zealand Farmers’ Co-op., 65 per cent. Stock, 1930, £77 10s; Mount Lyell, 30s 85d. MINING NEWS HAURAKI. —The manager reports as follows: The seaward face at the 400-feet level has been suspended for the present to enable driving to be done into the hanging wall country to locate the source of the strong flow of water coming from that wall. It is probably coming from the Green Harp reef. The rise on the junction of the two reefs is being worked only spare time, and is now 35 feet from the floor of the 400-feet level. The reef is still the full width of the rise. The Hauraki shaft is down 18 feet below the 500-feet chamber, with no change to report in the favourable nature of the country rock met with. The crosscut toward the Hauraki North section is now 450 feet from the new reef.