BUTTER PRICES UP

Taranaki Daily News, 27 November 1926, Page 13

BUTTER PRICES UP

BOARD RATES ADVANCED

LONDON MARKET IMPROVES

STORED STOCK CLEARED UP

HEAVY SALES RECENTLY

Bj Telegraph—Press Assn.—Copyright. London. Nov. 25.

There has been a remarkable improvement in the butter trade during the last three days, following on a better indusrial outlook and reports of dry weather in New South Wales and Queensland as likely to reduee shipments, A good demand has sprung up in London and the provinces, and there are also some sales for America and tho Continent, where there is a shortage. One broker says he sold more butter on Tuesday and Wednesday and to-day than in the previous four months. It is reported that the New Zealand new season's supplies are practically cleared at 148 s to 150 s. The control price has been raised to 156 s to 158 s. Danish is firm at 170 s; Australian, choicest salted 146 s to 148 s, exceptionally fine 150 s, unsalted 160 s to 1625. Cheese. —Firm; New Zealand. 84s to 85 s.

OFFICIAL EXPLANATION.

STATEMENT BY THE BOARD.

Wellington, Thursday.

Information has been received by the Hairy Produce Board that the butter market in London shows an improvement and New Zealand prices have been advanced by the joint - committee 4s, making finest 154 s and first-grade 1525. Store butter has firmed to 144 s to 1465, indicating the approaching exhaustion of these stocks.

In explanation of the position, an official statement says: —“Attention is naturally concentrated on the London market. The board's policy has been functioning for two full weeks only, and the considered view of the London manager, according to the latest cabled information, is that in view of all the circumstances and the considerable sales of old season’s butter, the sale of boardcontrolled butter and cheese is satisfactory.

“Press and trade reports, as publish ed, have sought to suggest that the board’s. Sales were negligible. That is not so. It must be remembered that on the point of sales the position is now reversed from the former state. It is the board which Hj>: has exact market Information and the fullest statistics of the sales of its own produce. The sales have been considerable and satisfactory and, it is interesting to note, have shown an average superiority of a few pence over the prices nominated by the joint committee. This price superiority shows that there is a healthy demand for the new produce and that th* prices are not restricting sales, because buyers are paying higher money. “The rise in price now reported may be taken as an indication . that stored butter for practical purposes as a considerable factor is at an end. It is pointed out that there will be an appreciable gap in arrivals between the Kemuera on November 14 and the lona on December 4. This interval will give a respite for the consumption of old season’s stocks at the reduced retail price of Is ad and permit of concentration upon the new season’s stock. “The Danish supply had slightly dropped on latest reports, and a larger quantity is being sent to Germany. Four weeks ago the Danish production was 2579 tons for the week, of which 78 per cent, went to Britain and 21 per cent, to Germany. The price then was 180 s. At the current 170 s level Denmark is sending 30 per cent, of her make of 2175 tons for the last week to Germany, and only '<>6 per cent, to tho United Kingdom. This will tend to help the market, which will probably firm still further.

“The cheese position is not so healthy at the moment, and the market is reporteel ‘sick,’ with sales down to 82s 9d. Stocks in sight on October 1 were, it i» shown in the report of the board's London manager, 2000 tons in excess of those at the-same period last -year; -The resumption of work in the mining districts, of course, will help matters, as the miners are large consumers of cheese and the forward position may be regarded as sound.” The following cablegram, dated November 24, has been received by the Loan and Mercantile Company from that company’s London house, the previous quotations being in parentheses: “Butter: New Zealand, more demand at 142 s to 144 s per cwt. (138 s to 1425); controlled, 152 s to 156 s per cwt (148 s to 150 s). Cheese quotations are unchanged (last quotation 84s to Sos per cwt).” ...

Private advice received in New Plymouth yesterday states that the control prices for New Zealand butter advanced 4s on Wednesday and 4s on Thursday. They are now quoted at 158 s for finest grade and 156 s for first grades. Big sales of stored butter were made during the week at -148 s to 150 s prior to the advance. The market is firm. The cheese market is stated to be quiet, with the quotations at 84s to 85s. Last week the quotations were:— New Zealand butter:—Control prices unchanged; market lifeless; stored butter, 14fts; demand good. New Zealand cheese. Market quiet; prices, S4e to 85s.