GOOD BUTTER RETURN

Sun (Auckland), Volume II, Issue 617, 20 March 1929, Page 11

GOOD BUTTER RETURN

AVERAGE PRICE SHOULD BE HIGHER ERRATIC MOVES IN MARKET (From Our Resident Reporter) WELLINGTON, Tuesday. Despite the erratic behaviour of the butter market, a good return to producers for the season was prophesied by a leading broker yesterday. “When people are pushing down the market it is hard to tell where they will stop,” said the broker. When the decline began we held, but when it reached 70s we cabled to our representatives stating that they were to hold if they thought it worth while. Since then there has been a further drop to 66s and 68s, and we have just heard that they have sold. Apparently they do not think it worth while holding at 665, and we can only wait and see what happens. “Given a recovery within reasonable time, however, the producer must average about Is for his butter, an increase of at least one penny over last season’s average. “With cheese the position is different. There seems to be no life whatever in the market, and prospects are not good. If the position were even what it is in the butter market we should feel more hopeful. The consumption seems to have fallen away, and we can assign it to the public reaction from several months of high prices. Practically every factory in New Zealand, I should say, could have sold at some time f.o.b. for 9d, which works out to 83s. Charges would bring this up to 955. But now it is difficult to know what the return will be.”