Weather, Crops, and Markets. Vol. 2, No. 6

by Anonymous

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.