Dairy and Poultry BUTTER MARKETS DROP UNDER ACCUMULATIONS OF RECEIPTS Prices Fluctuate During Week—Large Increase in Consumption Over 1921 So Far This Year.
Reading edition
Increasing accumulations of butter and lack of confidence among members of the trade were the principal factors in bringing about extremely weak conditions and radical declines in all markets during the early part of the week ending July 29. The resulting lower prices attracted a speculative demand which was largely instrumental in causing equally radical advances during the latter part of the week. The prices at the close of the week, however, hovered near the same levels as at the opening, and conditions, although not so extremely weak because of lighter stocks, were equally unsettled.
Since early in July receivers have been burdened with heavy accumulations of receipts because of the curtailed storing demand, and the strength of the market has been maintained by the hope that consuming outlets would become larger, that receipts would decrease more rapidly, or that exporters would take considerable quantities. When there appeared to be no immediate outlet for the accumulating stocks, dealers slashed prices and cleared away a large part of the accumulations.
SPECULATIVE INTEREST DEVELOPS.
The lower prices, however, brought forth a speculative interest which was so keen that prices reacted practically to the level on Monday. But with the higher prices buyers again disappeared, the market became very unsettled, and some price reductions ensued.
The strengthening factors are an excellent consumptive demand, possibilities of export and the improbability of any considerable imports. A shortage in stocks of butter in foreign markets makes it probable that considerable butter will be exported and improbable that the imports will be large. Aside from the possibility of exports and imports, the enormous quantity of butter going into consumption is a major factor in the possible trend of the markets.
Receipts at the four markets since Jan. 1 show a surplus of some 58,000,000 lbs. over the same period a year ago. Of these receipts, nearly 11,000,000 lbs. in excess of last year was stored. Import and export figures for the first six months of the year show an excess of exports over imports of 2,365,000 lbs. During the corresponding period in 1921 there was an excess of imports amounting to 6,139,000 lbs. Deducting the 11,000,000 lbs. which was stored in excess of last year and the decrease of 8,000,000 lbs. due to foreign trade, the apparent increase in consumption since Jan. 1, 1922, amounts to some 39,000,000 lbs.
On the other hand, while larger quantities have gone into consumption there are some operators who are bearish and claim that prices will have to rule higher next winter than last winter in order to allow a fair profit on present storage stocks, and that this condition naturally would reduce consumption. It is claimed also that production may continue comparatively heavy, making large outlets necessary. Some also point out that during our winter months the countries in the Southern Hemisphere have their season of flush production and that imports from those countries are a possibility.
Notwithstanding the fact that the markets at present are weak and unsettled, and receivers generally desire to keep current receipts moving, most of those owning storage butter have confidence in holding it at its present cost.
WHOLESALE PRICES OF BUTTER AND CHEESE, WEEK ENDING JULY 29, 1922.
[Cents per pound.]
CREAMERY BUTTER (92 score). New York. Chicago. Philadelphia. Boston. San Francisco.
Monday 35 33 36 36 37¼
Tuesday 34 32½ 35 35½ 37
Wednesday 34½ 32½ 35 35½ 37
Thursday 35½ 34 36 36 37¼
Friday 34½ 33½ 35½ 35½ 37
Saturday 34 33½ 35½ 35½ 37
Average for week 34.68 33.17 35.50 35.67 37.08
Previous week 36.08 34.08 36.67 36.67 39.37
Corresponding week last year 42.67 41.42 43.08 43.50 39.62
AMERICAN CHEESE (No. 1 fresh twins) New York. Chicago. Boston. San Francisco.[10] Wisconsin.
Monday 20½‒21¼ 18½‒19 21½‒22½ 19¼ 18¼
Tuesday 20¼‒21 18½‒19 21½‒22¼ 19¼ 18½
Wednesday 20¼‒21 18½‒19 21½‒22¼ 20 18½
Thursday 20¼‒21 18½‒19 21½‒22 19¾ 18¼
Friday 20¼‒21 18½‒19 21½‒22 19¾ 18
Saturday 20¼‒21 18½‒19 21 ‒21½ 19¾ 18
Average for week 20.67 18.75 21.68 19.62 18.26
Previous week 21.13 18.83 22.00 19.21 18.71
Corresponding week last year 21.00 20.44 21.42 22.08 21.04
Wholesale Prices of Centralized Butter (90 score) at Chicago.
[Cents per pound.]
Monday 32¼
Tuesday 31¾
Wednesday 32¼
Thursday 33
Friday 32¾
Saturday 32¾
Average 32.46
MOVEMENT AT FIVE MARKETS.
[New York, Chicago, Philadelphia, Boston, and San Francisco.]
Week ending July 29. Previous week. Last year.
BUTTER. Pounds. Pounds. Pounds.
Receipts for week 16,406,388 17,848,858 13,737,695
Receipts since Jan. 1 406,421,998 390,015,610 333,511,550
Put into cold storage 5,763,120 6,227,574 4,363,777
Withdrawn from cold storage 1,196,527 1,090,911 2,391,506
Change during week +4,566,593 +5,136,663 +1,972,271
Total holdings 58,529,169 53,962,576 49,378,903
CHEESE.
Receipts for week 4,760,350 4,368,795 4,034,423
Receipts since Jan. 1 113,423,195 108,662,845 109,844,370
Put into cold storage 2,212,808 2,824,638 2,780,994
Withdrawn from cold storage 1,297,907 1,185,107 1,753,219
Change during week +914,901 +1,639,531 +1,027,775
Total holdings 17,542,277 16,627,376 15,250,616
DRESSED POULTRY.
Receipts for week 3,039,791 3,237,754 2,455,183
Receipts since Jan. 1 107,262,094 104,222,303 91,359,363
Put into cold storage 1,039,930 1,211,646 745,099
Withdrawn from cold storage 2,114,313 2,144,566 1,518,844
Change during week ‒1,074,383 ‒932,920 ‒773,745
Total holdings 23,316,211 24,390,594 15,513,172
EGGS. Cases. Cases. Cases.
Receipts for week 273,535 293,498 236,614
Receipts since Jan. 1 12,471,456 12,197,921 11,265,592
Put into cold storage 76,188 74,222 45,631
Withdrawn from cold storage 34,863 29,352 70,151
Change during week +41,325 +44,870 ‒24,520
Total holdings 4,995,153 4,953,828 3,645,439
CHEESE PRICES LOWER UNDER LIGHT CONSUMPTIVE DEMAND Speculative Demand Also Lacking—Prices Down a Full Cent at Wisconsin Primary Markets.
The light summer consumptive demand without the support of speculative storage activity has been insufficient to clear the current make of cheese during the past few weeks, and as a consequence a weaker feeling developed. During the week ending July 29 this weakness became more pronounced, and prices at the Wisconsin primary markets were lowered as much as a full cent in an effort to stimulate trading.
Buyers, however, were not eager to take on any more goods than could be readily used to meet daily requirements. Although a few cars of fine cheese were purchased early in the week for storage, the majority of buyers felt that the market was on too high a plane for speculation.
SPECULATIVE DEMAND ABSENT.
The absence of speculative support has probably been the largest factor in the weaker country markets, and the reflection of this weakness in the distributing markets. Moreover, movement into consumptive channels has not been active for some time. As storage demand has been lacking and the primary markets have been showing signs of weakening, most buyers at distributing points adopted the policy of hand-to-mouth buying in anticipation of lower prices. Advices at the end of the week indicated that some dealers do not look for a revival of trade until prices at country points reach 16¢, about 2¢ below present prices. However, this sentiment is not universal, and many dealers think that present prices may not be far from bottom.
Embargoes on railroad shipments of perishable foodstuffs in the southern and southwestern sections of the country have reduced shipments below normal requirements, and until the rail strike is ended but little support is expected from those sections. In fact, many in the trade believe that while the strike may cause higher prices in certain consuming centers where supplies are exhausted, embargoes on shipments will tend to weaken the primary markets because of curtailed outlets.
At the close of the week the tone of the market was barely steady. Holders were free sellers, and in many instances were inclined to make concessions in order to keep stocks as low as possible. Little export or import business was reported, although small shipments of Split Twins were imported from Canada. However, both the export and import business was of small consequence and did not affect the market. With production in excess of consumption and speculators off the market, many in the trade expect an unsettled market accompanied by lower prices.
IMPORTS OF EGGS DURING JUNE, 1922.
[Data from the Department of Commerce.]
Imported from— Eggs in the shell Dried and frozen eggs. Egg albumen.
Dozen. Pounds. Pounds.
Denmark 2,100
Canada 16,957 12,800
China 72 865,000 374,140
Hongkong 24,319 7,636 300
Other countries 6
Total:
June, 1922 43,454 885,436 374,440
June, 1921 44,941 726,596 293,948
Jan. to June, 1922 632,189 4,840,377 4,072,171
Jan. to June, 1921 2,471,167 6,198,562 1,322,519
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CONDENSED AND EVAPORATED MILK MARKETS STILL SLOW Domestic Products Meeting With More Competition From European Goods—Exports Decrease.
The same relative inactivity which has featured condensed and evaporated milk markets for several months continued during July, and prospects for any materially improved demand are so slight that many of the trade who have held a more or less confident attitude are beginning to lose some of their optimism.
Export demand, upon which canned milk manufacturers have come to depend to a large extent as an outlet for surplus domestic production, has become less of a factor each month. Buying for relief purposes, which constituted such a support to the evaporated milk market especially, has practically ceased, and no additional orders seem to be in sight.
LITTLE FOREIGN DEMAND EXPECTED.
Domestic demand in England is reported as somewhat heavier, but American manufacturers have as competitors an increasing number of European factories which are able to lay down the goods at a lower cost. In fact, foreign demand is not expected to absorb very large quantities of American-made goods in the very near future. Latest export figures are for the month of June and indicate a slight decrease under May and a very large decrease under June, 1921.
Condenseries, however, have had at least one favorable condition during the past few months which has helped considerably to offset the dull demand for canned milk. Prices of both butter and cheese have been at levels that made it possible to divert surplus milk into one or the other of these products, and as a result the production of condensed and evaporated goods has been held as low as was consistent with good business practice. These outlets have been fortunate not only because of the lighter demand which has featured both condensed and evaporated milk markets, but because of the upward tendency of costs of manufacturing as well. Seasonal advances in prices of raw milk are almost at hand, and in the case of condensed milk, sugar is over one-third higher in cost than it was in the spring. The latter has been of considerable influence in diverting trade demand to evaporated milk on account of the lower prices at which this class of goods could be sold.
The summer demand from the domestic trade for condensed and evaporated milk has not been up to expectations. The icecream trade especially has taken much smaller quantities of goods than condensing firms had anticipated. This is explained partly by the fact that powdered milk is being more widely used in the manufacture of ice cream, and partly by the relatively cool weather in various consuming sections of the country.
Summarized figures from manufacturers indicate that condensing operations have been carried on conservatively and that due consideration has been given to the anticipated and actual dull summer demand from all classes of trade. Although total stocks on July 1, as indicated in the accompanying tables, reveal a moderately heavy increase over June 1, it must be borne in mind that the heavy producing season has just passed. It is to be noted also that while total stocks on July 1 were heavier than on the first of the previous month unsold stocks were lighter. Furthermore, a comparison of total stocks on July 1 this year and last shows a decrease of approximately 26%. Therefore, from the statistical standpoint, markets were, perhaps, in better shape on July 1 than they were June 1.
Stocks and Exports of Condensed and Evaporated Milk.
[In thousands of pounds; i. e., 000 omitted].
Stocks. July 1, 1922. June 1, 1922.[11] July 1, 1921.
Case goods. Bulk goods. Case goods. Bulk goods. Case goods. Bulk goods.
CONDENSED.
Total stocks 21,706 22,078 25,032 12,520 33,670 27,981
Total unsold stocks 16,325 16,215 21,775 9,360 28,577 21,567
Total unfilled orders 183 229 422 460
EVAPORATED.
Total stocks 141,380 499 135,895 370 169,576 1,331
Total unsold stocks 84,234 351 109,238 362 142,215 1,318
Total unfilled orders 1,196 1,315 2,342
Exports. June, 1922. May, 1922. June, 1921.
Condensed milk 4,817 6,678 8,060
Evaporated milk 10,890 9,032 13,640
Total 15,707 15,710 21,700
Prices to Producers at Condenseries for 3.5% Milk.
[Per 100 pounds.]
Geographic section. By manufacturers of case and bulk goods. By manufacturers of bulk goods only.
July. June. July. June.
New England $1.73 $1.53
Middle Atlantic 1.83 1.85 $1.76 $1.62
South Atlantic 1.69 1.64 1.45 1.45
East North Central 1.58 1.42 1.71 1.62
West North Central 1.59 1.53 1.56 1.56
Western (North) 1.65 1.56 1.71 1.54
Western (South) 4.61 1.42
United States 1.60 1.45 1.72 1.61
Wholesale Prices of Condensed and Evaporated Milk.
[To domestic trade.]
Geographic section. Sweetened condensed. Case of 14‒oz. cans. Unsweetened evaporated. Case of 16‒oz. cans.
June. May. June. May.
New England $5.12 $5.10 $3.91 $3.89
Middle Atlantic 5.18 5.03 3.87 3.87
South Atlantic 5.27 5.25 3.91 3.95
East North Central 5.34 5.26 3.75 3.73
West North Central 5.20 5.13 3.79 3.76
South Central 5.45 5.41 3.95 3.95
Western (North 4.70 4.03 3.89
Western (South 4.06 4.00
United States 5.24 5.17 3.89 3.86
GREAT BRITAIN’S BUTTER IMPORTS.
(Concluded from front page.)
the shifted seasonal trend of England’s butter imports, for if the imports follow the same seasonal trend in 1922 as during the period from 1917 to 1921 England had already received at the end of June two-thirds of that country’s foreign supply for the present year.
During the first fire months of 1922 England received 60,000,000 lbs. from Denmark, compared with 48,000,000 lbs. during the corresponding period of 1921. Danish exporters in recent years have scattered their exports to various other countries, and while not so dependent upon England for a market as previously, could at any time take advantage of any favorable offer from their long-established British trade. The flush of the butter production in Denmark was reached this year by June 1 and the competition met in the English market is now not so largely European as formerly, which doubtless leaves Denmark with some seasonal advantage.
The prospective demand for butter in England during the rest of this year depends largely, of course, upon the consumer’s purchasing power.
MILK POWDER REPORT FOR JULY.
Manufacturers’ Stocks of Powdered Milk.
Whole milk powder. Skimmed milk powder.
Case goods. Bulk goods. Case goods. Bulk goods.
Total stocks,[12] July 1: Pounds. Pounds. Pounds. Pounds.
1921 393,090 854,980 245,481 11,039,889
1922 110,434 1,269,262 194,479 7,484,849
Unsold stocks,[13] July 1:
1921 393,090 128,980 245,481 8,016,419
1922 110,434 538,588 133,101 3,341,739
Wholesale Prices of Skimmed Milk Powder During June, 1922.
[Cents per pound.]
Case goods.[14] Barreled goods.
Geographic section. Range.[15] Bulk of sales, fresh goods.[16] Range.[15] Bulk of sales, fresh goods.[16]
New England 33 33 7½‒11 8 ‒11
Middle Atlantic 15‒33 15‒33 7 ‒11 7 ‒11
South Atlantic 33 33 7¾‒11 8½‒11
East North Central 33 33 6¾‒11 7½‒11
West North Central 33 33 6 ‒11 8 ‒11
South Central 33 33 7¾‒11 9 ‒11
Northwestern 36 36 5 ‒12 5 ‒12
Southwestern 20‒36 20‒36 6½‒12 6½‒12
Prices of other powdered milk products ranged as follows: Whole milk powder, 30¢‒58¢ per 1‒lb. can for case goods, and 22¢‒28¢ for goods packed in barrels; dried buttermilk 10½¢‒12¢ for case goods, and 3½¢‒11¼¢ for goods packed in barrels.
Skimmed milk powder for export trade was reported sold at 10¢‒11¼¢ per lb. f. a. s. Atlantic seaboard, and 7½¢ per lb. f. a. s. Pacific seaboard.
Exports of Powdered Milk During June, 1922.
Destination. Pounds.
France 23,023
Germany 361,110
Norway 1,500
Netherlands 227,400
United Kingdom 86,200
Canada 2,898
Newfoundland and Labrador 1,974
Panama 3,009
Mexico 26,469
Cuba 1,670
Peru 4,442
Venezuela 4,010
China 46,265
Hongkong 5,000
Japan 21,090
Philippine Islands 695
Other countries 5,870
Total:
June, 1922 822,625
June, 1921 733,577
Jan.-June, 1922 4,610,082
Jan.-June, 1921 2,735,869
Canada’s Storage Stocks of Butter on July 1 Below last Year.
The quantity of creamery butter in storage throughout Canada on July 1 was 10,178,891 lbs., while that of dairy butter was only 426,671 lbs. Comparative figures show this to be a decrease of 34% in the case of creamery butter and 18.83% in the case of dairy butter from the amounts held in storage on the corresponding date last year.
The average quantity of peanuts exported per annum from Senegal during the five years 1916‒1920 was 190,512 metric tons, according to the American Consul at Dakar, Senegal. Peanuts constitute the most important export crop of Senegal, most of the exportable surplus going to England and France.
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