BUTTER AND CHEESE

Sun (Auckland), Volume II, Issue 383, 18 June 1928, Page 12

BUTTER AND CHEESE

LONDON MARKET HEALTHY POSITION LAST YEAR A gradual strengthening of the London ! butter and cheese market has been registered over the past month. At the close of last week New Zealand finest salted, quoted at 1745, was 2s in advance of the market for Danish. Reports from London indicate that the increased production of butter in the Northern Hemisphere is responsible for the fall in the market for the Danish product. Unfavourable weather conditions are now reported to be dwarfing production, however, and this is given as the reason for the recent improvement in the market. Commenting principally on the position on the market for New Zealand produce, A. H. Turnbull and Company, in a recent interview, stated that the statistical position at the present time could hardly be stronger, stocks of New Zealand butter in London being very low, while only 4.351 tons were stored in this country, compared with last year, when 8,700 tons were held. Forward buyers, stated the report, continue to absorb any offerings at from Is 42d for first grade to 3 s 5d for finest. Prospects for the balance of the season’s cheese were considered particularly bright, and, with the decreased stocks of New Zealand compared with last year, it was thought that prices should improve even further. With the exception that they will always be reflected on the New Zealand home consumption market, any slight movement of London dairy produce values over the next month or so will not affect producers at this end to any great extent. Little of the closing sason’s make is left to be sold outside the country, while it will be well on toward the end of August before the first of the new season’s make will be placed on the London market. With the new season not far off a glance through the figures ruling over the corresponding period of last yar is not without interest. At the middle of April last year the market was just beginning to show signs of life after the slump period which followed the attempt at price fixation and New Zealand finish butter was quoted up to 160 s, with Danish up to 1645. An improvement of 4s was registered at the middle of June, but July saw a weakening of 2s in the price of New Zealand, with Danish fallen to the level of this country’s produce at 1625. August saw a big jump of 10s to a top price of 172 s for New Zealand butter, and 176 s for Danish. By the end of Sptember the market had reached the season's peak, with quotations touching 18Gs, and a gradual decline set in till the first week in November, when it jumped up sharply and foi - two weeks held with top quotations slightly above 180 s again. Under date June 16 the London office of the Amalgamated Dairies, Ltd., cabled as follows: “Butter: ‘Anchor,’ 1745; unsalted, lS4s: colonial market firm; Continental butters quiet; Danish, 3 70s to 172 s on the spot; 164 s f.o.b. Deliveries of New Zealand, 989 tons; stock, 4,921, retails unchanged. Cheese: «*lo2s. Some asking 103 s ; market firm ; Canadian, 100 s c.i.f. ; less doing at advance. Retail advancing Is Id on Monday.” Leonard and Son, Ltd., report receipt of the following cable from their London principals: “Butter, 1745; cheese, 1025.”