PRICES FOR BUTTER.

Taranaki Daily News, 21 September 1922, Page 9

PRICES FOR BUTTER.

LONDON MARKET FIRM. PROSPECT FOR NEAR FUTURE. The prospects of the butter market for the new season continue to be keenly discussed. Already those interested in the dairying industry are confident that a record output will tie established during the season provided normal weather conditions are experienced. The question of price therefore, is of more than usual interest to the Dominion as a whole. Discussing the position in Auckland last week, an expert said to the Herald that it was generally held that a good market would rule in London till after Christmas. In January, February and March, would be heavy consignments of New Zealand and Australian butter arriving in England, and a considerable drop in market values was expected to take place during those months. The bulk of the New Zealand butter,in London at present, he said, was no <ioubt held by people who had purchased it at a fairly high figure, and it was now being placed on the market to meet the seasonal shortage. It appeared likely that the present holdings would be marketed to give an average return of between 196 s and 236 s per cwt., which was the range of prices when the butter was bought. At the higher price, consumption would be retarded, and immediately the new season’s butter arrived in any quantity the market no doubt would be regulated to a price that would encourage consumption. That did not necessarily mean there would be a particularly heavy drop, he added, as a retail price up to 2s a lb., it was stated, did not retard consumption. That figure was equal to between 205 s and 210 s per cwt., or from Is 7:]d to Is BAd f.o.b. in New Zealand. A reassuring feature said the expert, was the steadiness of the market at present, the latest quotations being about 214 s per cwt. Sales of September manufacture had been made in the Dominion at a price equivalent to the London quotation, but buyers did not care to quote for October manufacture owing to the possibility of it not arriving in England before Christmas. There was still strong inquiry for butter that could be guaranteed to arrive before that period.