A BEAR IN BUTTER.

Taranaki Daily News, Volume LI, Issue 85, 30 March 1908, Page 3

A BEAR IN BUTTER.

A WELLINGTON ItCMOII. AN EARLY FALL I.\ PRICES. It is seriously rumored in Wellington (says Saturday's Dominion) that there it a movement afoot to bear the butter market, and that in pursuance of the scheme a fall of price will take place in the first week in April. A War will be a charming novelty for New Zealand. Th» bears, jt j a alleged, have two object* in view, first, to frighten the outside factories from entering the local markets when their British contrast* expire at the end of this month, and seoondly, to secure the output at a low figure. If the scheme should succeed, and satisfactory contracts be made controlling the winter supplier, it is alleged that the price will lie again raised. It is considered essential to the schema that the fall in price will be rather deand that in the meantime as much batter as possible will be stored in order to give the drop a semblance of geonijKnen. It is hard to estimate the quantity stored until the official returns lor the month come in, but one estimate iNts the quantity as high as 33,000 luxe*. The quantity at the end of February was only a little over 21,000 boxes. It is considered almost certain that factories will not export after the expiration of their contracts if the present wide gap between local and Home prices continues, and city merchants arc ■aid to be particularly anxious to avert sew competition just now. The success of a bear, however, due? not seem to be very much pre-assured bo far as it may aim at cornering su:>plies for a future rise, and probably thi part of the rumor nied sot be taken very seriously. It Could only succeed if large supplies could be diverted to tihe British market—a contingency which is by no means Likely. The London pri-?e to-dsy is'only equal to about lid per pound net, and it will be hard to persuade local factory directors that the local price is going to be less than that, {taring the last two years the quantities of batter exported in the six months nf April-September, which represented tlie surplus after supplying the loc.il need.-, were, in round figure-, boxes in ltHMi, and IM.Wit Ito.v- in 1907. .If there should be anything liko 330.00 lioxcs in -tore at the end «I March, it will only need another aO.Oifi boxes to be produced during the next six months to fill all the needs of the Dominion. Since the end of tebruar. 33,000 boxes of butter lave been exported over the quantity reserved for the local needs, and if all future outputs come upon the local markets there i= every justification for the belief that the local" markets will lie well supplied. On the whole, there oeems to be uj j!«ed of a bear to warrant an immediate drop.