FACTORS INFLUENCING MARKET

Sun (Auckland), Volume II, Issue 612, 14 March 1929, Page 12

FACTORS INFLUENCING MARKET

A comprehensive review of the London dany produce market is given by A. H. iurnbull and Company m their report for the live weeks ended March 12:— I ? uttei ; market during the past P°tes'\he a rev3v, Zeffi"sa!?ed l?2 t s e on f lvra nS I ir i° m A? 4s on February Ito v? laiCl i lf willle . Danish and other makes have been similarly affected.” W. Weddel and Co., Ltd., in their cabled reports, state that there have been fa n tors fading to this drop. .-^ irst iy» .all operators have been receiving tlieir early purchases, resulting: in SeSiv 0 interest in the spot market. ’ th ® consumptive deinand was seriously, curtailed, owing to the higher retail prices ruling. Thirdly, the indusu‘;'l depression, owing to the abnormally cold weather, resulted in heavy margarine sales at cheaper prices, thus affecting the spot butter market. Fourthly. the serious sickness epidemic. “These causes, combined, were further acctunated by the fact that the Australian drought had broken and the increased production from New Zealand. It must be remembered that in January and February of last year New Zealand experienced a dry period, resulting in a sharp fall in production, more especially in the butterproducing districts of the North Island, whereas this year the weather has been practically ideal for the dairy farmer, with a very heavy increase in gradings ul ail dairy produce. “London advices state, however, that the market, which is now at 17Js, has, in their opinion, touched bottom and slightlv higher prices may be looked for in the near future. The gradings show a new record in production, butter graded during February being 25.1 per cent, above last year, while the gradings for the seven months to the end of February have reached a total of 64,533 tons, being an increase on last year of 9.7 per cent. ‘On the other hand, it is worthy of note that the quantity held in store amounts only to some 5,0u0 tons, being 1,300 tons lower than the quantity in store on March 1, 1928. “The continuance of the extremely cold weather, combined with the epidemic above referred to, has resulted in a very low consumptive deman for cheese, and this, together with the heavy arrivals, has caused a considerable accumulation of stocks in the United Kingdom. Spot buyers have shown little or no interest, while for forward positions, prices declined to 84s and 85s a cwt. These reduced values, however, produced a better demand and, owing to operations of speculators, prices advanced again to S9s and 90s, but in view of the heavy stocks in the United Kingdom and afloat, we cannot look forward for any material improvement in the immediate future. Gradings of cheese also, show a record in production, February gradings being 14.2 per cent, over 1 last year, while the total gradings for seven months to the end of February are 13.3 per cent, above those recorded for 1928.”