BUTTER AND CHEESE

Sun (Auckland), Volume II, Issue 405, 13 July 1928, Page 12

BUTTER AND CHEESE

FORWARD BUYERS OPERATING AN INTERESTING REVIEW A steady upward tendency has been registered in the London butter market over the past few weeks. In view of this the following report on dairy produce market to July 10, by A. H. Turnbull and Company, New Zealand agents for W. Weddel and Co., Ltd., makes interesting reading:— “The market has shown a steady improvement in prices throughout the month,” states the report, .“although the increase has not been as rapid as many predicted. W. Weddel and Co., Ltd., cable that the strength of the market lies in thfe strong statistical position and the fact that large operators have been buying stocks to protect them against a possible shortage during the northern autumn, owing to the short stocks of New Zealand to arrive. A further factor has been the backward spring in Northern Europe, resulting in a very considerable decrease in arrivals to date of Continental and Siberian butter, as compared with last year. “Weather conditions are now reported as more favourable, and consequently some easing off of demand on the part of large buyers has been experienced. For forward delivery, new season’s sales have been made as high as Is s.\d nett f.0.b., but here again the immediate demand of forward buyers has been filled, and business is only possible at reduced prices, present indications being in the vicinity of Is 5d nett f.o.b. for finest, a farthing a pound less for firsts. “Cheese, like butter, stands in a strong position. Retail prices have been increased to 13d a lb, and wholesale rates advanced Accordingly. Cold weather was reported as retarding consumption, but with the warm weather of mid-summer this should now be overcome and it is expected that supplies will be short until the arrival of new season’s Canadian make. This is now offering at 103 s to 104 s c.i.f., but with little forward buying. “We are of opinion that the market will remain steady but with a slightly lower tendency meantime,” concludes the report. “A very good indication for new season’s make is given by the rate of advances authorised for August grading, being Is 6d for butter and lOd for cheese, f.o.b. It must, however, be remembered that these arc purposely made on a very liberal basis, to assist factories at the commencement of the season, and must not be taken too literally, as prospective values. Merchants’ Reports Merchants report receipt of London cables as follows: — Dalgety and Co., Ltd., from their London house, under date July 12:— “Butter: The market is firm. New Zealand finest, salted, 180 s to 3 82s; Danish, 178 s to ISOs; Australian finest unsalted, 3 70s to 1745; salted, 168 s to 170 s; G.A.Q., 156 s to 1625. Cheese: The market is firm. New Zealand white and coloured, Ills to 112 s; Canadian white and coloured, 110 sto 3125; Australian white and Coloured, 106 s to 108 s; Canadian c.i.f., 110 s. The total imports of butter into the United Kingdom for last month were 632,000 cwt., as compared with 651.000 cwt. for the corresponding period last year. Norden and Co., Ltd., from their London principals, Andrew Clement and Sons, under date July 12: “New Zealand butter, finest salted, 3 08s (equivalent to Is 5.52 d a lb f.0.b.); unsalted, 186 s (equivalent to Is 6.14 d a lb f.0.b.). Cheese, 110 sto Ills (equivalent to lO.ld a lb f.0.b.). Dalgety and Co., Ltd., report receipt of the following cable from their London office dated July 12:— “Frozen Meat: The market is quieter owing to hot weather. Quotations are unchanged except for chilled beef, which is 2id less. There Ms a recovery in demand for heavy lamb.” '