HEAVY SUPPLIES

Sun (Auckland), Volume III, Issue 919, 12 March 1930, Page 10

HEAVY SUPPLIES

OVERSEAS BUTTER MARKET AN INTERESTING REVIEW An even greater decline in the overseas dairy produce market is predicted by Messrs. A. H. Turnbull, Ltd., in a review released under date March 10. “The market has weakened considerably during the month, and in spite of the fact that the retail price for colonial butters has been reduced to Is 6d, buyers still continue to operate only for their current requirements,” states the review. Messrs. Weddel and Co., Ltd., our London princnpals, cabling on the 4th instant, stated that the market was weaker and that New Zealand finest was then freely offered a 144 s and Kangaroos at 13Ss. In their opinion the market in the meantime was more likely to decline than advance. Since that date later cables to hand show the quotations for New Zealand finest down to 13Ss to 140 s. * Tlie arrivals of butter in February, and the estimated arrivals in March are a little lighter than the arrivals for the past two seasons. On the other hand,, however, the butter allotted to steamers due to arrive in April shows a very heavy increase on the arrivals in 1928 and 1929. The total arrivals in February, and the estimated arrivals in March and April of this year are, however, only about equal to the arrivals in the two previous seasons. INCREASED NEW ZEALAND GRADINGS ‘ We would draw your attention particularly to the tremendous increase in gradings during this month. The total of 11,230 tons constitutes a record for February gradings. Stocks of butter in New Zealand at the end of February, 12,700 tons, were also greater than we have had in store at this time of the year since 1927. It, therefore, appears as though the butter to arrive during May and June will be considerably heavier than the arrivals for the past few seasons. In view of the heavy production and the large stocks in New Zealand one cannot be very optimistic with regard to the immediate future of butter, and we therefore do not anticipate any great improvement in London quotations. The fact, however, that the retail price of butter has been reduced to Is 6d will, we hope, make a considerable increase in the consumption, and possibly a better demand may have the effect of clearing stocks. CHEESE MARKET WEAKENING “The cheese market, has also been weakening and quotations have again fallen, but more in sympathy with butter than for any other reason. Messrs. Weddel and Co., Ltd., advise that buyers are using extreme caution in their purchases. They state, however. that they expect a steady market. “The cheese position as far as stocks are concerned is somewhat stronger than butter, and the estimated arrivals for February, March and April are considerably less than for the two previous seasons. Our February gradings, however, are heavy, but the stocks in store in New Zealand at the end of the month are not very much greater than last season's. _ General trading conditions in the United Kingdom are certainly dull, and until the general lack of confidence in commercial circles is restored, we feel that markets must remain at a low level. FORWARD BUSINESS “Although there were some buyers of Jitter for March-April shipment at Is to Is 3d nett f.0.b.,. these have now retired with the fall in prices, and it seems impossible at the moment to interest London buyers at all. With regard to cheese, there has been some inquiry at 8d fo.b. for February-make cheese or February to end of season but buyers are difficult to find even’ at this price.”