September sugar review

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Part of The American Chamber of Commerce Journal

Title: September sugar review
Language: English
Source: The American Chamber of Commerce Journal Volume XIII (No. 10) October 1933
Year: 1933
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Fulltext: 20 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1933 COPRA AND ITS PRODUCTS By Kenneth R Day and Leo Schnurmacher The provincial data on copra for the month of August was late in arriving and the Journal went to press before the copra information could be compiled. This article will, therefore, cover both August and September. Copba:—The production of copra during the month of August was the heaviest yet recorded. September production, while lighter than Au gust, was still very heavy. At the beginning of August, copra was selling in Manila at 1*5.50 Resecada with the market weak. Under the pressure of increasingly heavy arrivals, the market has sagged downward continuously, prices being 1’5.00 at the end of August and from 1*4.80 to 1’5.00 at the end of September. Ar rivals in Manila during August totalled 031,845 sacks, an increase of 36'f over July and 45% over August, 1932, while receipts in Cebu to talled 461,025 sacks, or 40% higher than July and the same percentage higher than receipts lor August, 1932. During September Manila arrivals amounted to 547.483 sacks, 13% less than August but 30% over September, 1932 and Cebu receipts were 370,897 sacks, 20% under August but 27% over September, 1932. Weather was generally good for the production of copra throughout August and fairly good during September, especially in the southern part of the Islands. Pacific Coast copra buyers were bidding 1.65 cents at the beginning of August. This market dropped continuously during the period under review, quotations being 1.52% at the end of August and 1.47% to 1.50 at the end of Sep tember. European prices also followed the downward trend, opening at £10 and dropping to £8/7/6. Around the end of August there was a streng thening in the European copra market, partly on account of a small improvement in sterling exchange, and some business was reported to FOR THESE GOOD REASONS... GO EMPRESS Reason/...Record size. Reason 2...Record speed. Reason 3... Luxury of Pacific and Atlantic standards. More Reasons...? Ask anyone who’s made an ‘'Empress” crossing! Fortnight ly sailings from ORIENT TO VICTORIA AND VANCOUVER Choice of 2 Routes... Direct Express: Empress of Asia and Empress of Russia make trans Pacific crossing from Yokohama in 9 days. Via Honolulu; Empress of Japan (largest, fastest liner on Pacific) and Empress of Canada add but three days to the journey.... First and Tourist Class. Also, Third Class. RAILWAY SERVICE ACROSS CANADA have been transacted, mostly from southern ports. Shipments of copra during August^ totalled 38,000 tons and of September 28,000 tdns. Of these 35,000 tons were shipped trom Cebu and the balance nearly entirely from provincial ports. 34,000 tons were shipped to the Pacific Coast and 21,000 tons to Europe. Copra stocks on hand continued to increase and amounted to some 73,000 tons at the end of September, over double the stock carried a year ago. Coconut Oil:—At the beginning of August the Coconut Oil market was easy with offers of 3-1/4 cents c. i. f. New® York for shipment next year. This market was weak throughout the period with a slowly dropping tendency from selling pressure and September closed with the market fairly steady at 2-7/8 cents c. i. f. New York. Freight rates on oil for 1S84 are not yet fixed by the conference and this has undoubtedly held up business. Shipments for August were 17,000 tons and for September over 19,000 tons of which 24,000 tons went to the Atlantic Coast and 7,000 tons to Gulf ports. Crushing activity was good but in some instances limited on ac count of tank space. All mills were running, two, however, at half capacity only. Copra Cake:—During August the market was very dull on account of the imposition of an mport duty on foreign oil cakes entering Sweden and the introduction of similar legislation in the Norwegian Parliament. This combined with the German government prohibition has enor mously restricted the available outlet. Con siderable quantities have been sold, however, to Scandinavian ports for shipments up to March, 1934. Most mills have sold the greater part of their production for this year and unless there is an improvement in prices sufficient to induce additional sales, trading is expected to be dull for the near future. There was very little business done in meal on the Pacific Coast with prices dropping from 318.50 at the beginning of August to 317.00 at the end of that month and continu ing through September. Exports of copra cake and meal amounted to nearly 10,000 tons in August and 9,500 tons in September of which 17,000 tons went to Europe and the balance to the Pacific Coast. Desiccated Coconut: — Market remained steady during August and September without any appreciable advance. Shipments for 1933 still remain slightly below that of 1932 but it is expected that by the end of the year the volume will slightly exceed last year's figure. All mills, except one, operated, some for part time and some for the whole period, making an average of about 60% of capacity of the mills. Shipments for August were 1,800 tons and for September nearly 1,900 tons. It is not likely that this will be exceeded for the balance of the year. General:—Until the present heavy arrivals drop off, we see no chance for higher prices, as production is heavier than consumption. The trade is waiting for an advance expected from improvement in other staples but production has been so heavy that it has more than counter balanced any trend for better prices. The trip from Pacific Coast (Vancouver) to Atlantic Coast (Montreal or Quebec) is made in four days in the luxurious trains of the Canadian Pacific Railway. ONLY 3 TO 4 DAYS OCEAN TO EUROPE Ufa St. Lawrence Seaway.' Sail from Montreal or Quebec and enjoy 2 days on the smooth St. Lawrence. Then, only 3 to 4 days more to British and Continental ports. Regular sailings: Empress of Britain. size-speed-SPACF marvel. Famous ‘'Duchess" liners for smart economy. Popular “Mont-ships" for solid comfort, low cost. Attractive, low-priced Tourist and Third Class on all ships. YOUR INQUIRIES ARE INVITED CANADIAN PACIFIC WORLD’S GREATEST TRAVEL SYSTEM SEPTEMBER SUGAR REVIEW By Geo. H. Fairchild New York Market: Although transactions in actual sugar were very small during the first week, the tone of the market improvedslightly, with the price of Cuban sugarafloat (to the I nited States) advancing to 1.65 cents c. and f., while a parcel of P. 1. sugar in the same position was sold at 3.65 cents and 2,000 tons of Peruvian sugar sold on the 1st at 1.07 cents c.i.f. New York. During the second week, the market was dull owing to the political unrest in Cuba, transac(Elease turn to page Jo) IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1933 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 25 September Sugar Review (Continued from page 20) ♦ ions both in "futures" on the Exchange and in ‘‘actuals’ having been very limited. Small sales present shipment Cuban sugar were made to operators at 1.60 cents on the 15th after prices declined on the 12th to 1.55 cents and although September-October shipment I’. I. sugar did not attract buyers at a price of 3.60 cents, one refinery was willing to buy on this basis for January-February shipment on the same day. In view of the belief which was more or less substantiated during the third week of the month, that no change in the U. S. tariff on Cuban sugar was likely before next March, or possibly not before June, interest in Philippine sugar was revived, resulting in heavy transactions .for shipment up to the end of this year at prices of 3.60 cents and 3.61 cents, the latter price obtained in the sale of 2500 tons NovemberDecember shipment to Gulf refiners. The price of refined sugar was reduced on the 21st to 4.60 cents per pound, a decline of 10 points. "Futures” quotations steadily declined during the last, week of the month, 8 to 13 points having been lost, while the price of actual sugar sagged from 1.60 <^ents at. the beginning of the week to 1.53 cents at the close of the month. T'his decline was attributed partially to the improve ment in the U. 8. dollar and partially to the situation in Cuba which had taken a turn from bad to worst-. Interest in Philippine sugar waned as refiners were indisposed to make commitments for the present. It was reported in this connection that the beet sugar manufac turers were offering during the last week refined sugar in the eastern territory at 4.40 cents per lb. ns compared with the price of 4.60 cents quoted by the cane refiners. An agreement was reached in Washington on September 25th by the representatives of the various sugar, interests on a sugar stabilization plan which has been in the process of preparation for the past three months. The amount of sugar which the Philippine may supply annually to the United States market was raised to 1,100,000 short tons with an additional reserve of 100,000 tons to provide for any increase in the estimated consumption or the failure of any other producing area to fill its quota. It was the belief in some quarters that this would mean for the Philippines an actual quota of 1,200,000 tons since the expected deficiency in the continental U. S. quota plus th" amount of direct consumption sugar not included in the statistical data for the U. S. consumption would aggregate approximately 500,000 tons, thus releasing considerable tonnage for the other producing areas, with the Philippines and Cuba securing most of the extra tonnage. Futures: Quotations for future deliveries on the Exchange fluctuated during the month as follows: High Loir Latest December................. .......... 1.61 1 45 1 45 January..................... .......... 1.63 1.45 1 45 Marcn....................... ........ 1.68 1.50 1.50 May.......................... .......... 1.73 1 54 1 54 July........................... .......... 1.78 1.60 1 .60 September................ .......... 1.82 1 65 1 .65 Stocks: Stocks in the U. K., I’. S., Cuba, Java and European statistical countries were reported on September 29th 6,563,000 tons as compared with 6,955,000 tons in 1932 and 6,531,000 tons in 1931. Philippine Sales: Sales of P. 1. centrifugal sugar were reported in New York during the month amounting to 42,500 long tons at prices ranging from 3.60 cents to 3.65 cents per lb. Local Market: The local market for centrifugal sugar was quiet practically through out the month, with only fair quantities having been sold during the third week for OctoberNovember-December delivery on the basis of P8.25 per picul, after quotations had fluctuated between 1*8.20 and 1*8.00 to 1’8.10 during the first two weeks. Crop Prospects: Milling has begun during the month at some to the Centrals although it is reported that due to the continuous and heavy rains which fell in the latter part of the month, harvesting has been delayed on account of the Recommended By Leading Doctors Drink It for Your .Health’s Sake TEL. 5-73-06 Nature’s Best Mineral Water Quality Printing is as essential to your business as well-tailored clothes are to the successful salesman. Attractive letterheads, bill heads, cards, envelopes, labels, etc., are silent but powerful salesman. Why not let them carry your message in the most effective way? The McCullough Imprint ensures quality printing and all that it implies. McCullough service means expert supervision and the intelligent hand ling of your printing problems. Whatever your printing needs may be. you are assured the utmost satisfaction when McCullough does the job. May we serve you? McCullough printing co. Division of Philippine Education Co., Inc. 101 ESCOLTA Phone 21801 MANILA, P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 26 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1933 Luzon Stevedoring Co., Inc. Lightering, Marine Contractors Towboats, Launches, Waterboats Shipbuilders and Provisions SIMMIE & GRILK Phone 2-16-61 Port Area The National City Bank of New York Capital (Paid)------P248,000,000.00 Surplus...................P152,000,000.00 Undivided Profits - P 10,889,025.54 (as of June 30, 1932) COMPLETE BANKING SERVICES MANILA OFFICE National City Bank Building poor quality of the cane juice. A revised preliminary estimate of the 1933-34 crop compiled by the Sugar Association corroborates the figures released three months ago through official channels to the Washington Sugar Conferences, this estimate now being placed between 1,327,000 and 1,350,000 long tons. A A substitute sugar limitation bill, known as H. B. No. 3120 pixpared by the Committee on Agriculture of the House of Representatives was presented to the House during the month. It was reported that in view of the receipt here of the latest draft of the marketing agreement tentatively approved in Washington, the local limitation bill would still undergo some amendments to make it conform with the proposed marketing agreement. According to this agreement, the Philippine Legislature was given until March 1, 1934, to enact a law in the Islands limiting sugar production to an amount which wilj, provide for export of not more than 1,200,000 short tons plus an adequate amount for local consumption. Failure to pass a local limitation law will mean a reduc tion in the P. I. quota by 10 per cent until such time as said limitation law has been put into effect. Philippine Exports: Export statistics for the month of September as reported to us from private sources are as follows: Long Tons Centrifugals............................................. 8,949 Refined.................................................... 2,235 Total for the month....................... 11,184 Exports ot these two grades of sugar from the Islands to the United States for the eleven months of the current crop year from November 1, 1932, to September 30, 1933, are as follows: Long Tons Centrifugals......................................... 1,001,934 Refined........... j................................... 55,611 Total to date.............................. 1,057,545 FREIGHT REVENUE CAR LOADING RAIL COMMODITY MOVEMENTS By M. D. Royer Traffic Manager, Manila Railroad Company ■ 1 The volume of commodities received in Manila during the month of August, 1933, via the Manila Railroad are as follows: Rice, cavans................................. 180,770 Sugar, piculs................................. 40,917 Copra, piculs................................ 318,040 Desiccated coconuts, cases......... 15,491 Tobacco, bales.............................. 11,146 Lumber & Timber, Board Feet. 531,495 The freight revenue car loading statistics for five weeks ending August 26, 1933, as compared with the same period tor the year 1932 are given I below: SUMMARY COMMODITIES NUMBER OF FREIGHT CARS FREIGHT TONNAGE INCREASE OR DECREASE 1933 1932 1933 1932 Cars Tonnage Rice................................ 969 677 11,765 7,971 292 3,794 Palay.............................. 37 58 427 745 (21) (318) Sugar.............................. 146 173 3,530 4,043 (27) (513) Sugar Cane.................... Coprax............................ 2,282 1,651 17,905 13,172 631 4,733 Coconuts......................... 146 175 1,867 2,093 (29) (226) Molasses......................... 71 31 2,037 940 40 1,097 Hemp.............................. 10 7 88 58 3 30 Tobacco.......................... 80 119 768 1,098 (39) (330) Livestock........................ 24 41 108 223 (17) (115) Mineral Products......... 240 250 2,771 2,350 (10) 421 Lumber and Timber. . . 251 199 6,685 4,359 52 2,326 Other Forest Products. . 9 8 60 47 1 13 Manufactures................. 88 141 1,034 1,533 (53) (499) All others including LCL 3,263 3,008 22,677 19,851 255 2,826 Total..................... 7,616 6,538 71,722 58,483 1,078 13,239 NOTE: Figures in parenthesis indicate decrease. Week ending Saturday, July 29....................... Week ending Saturday, 1,575 1,232 14,797 11,482 343 3,315 August 5.................... Week ending Saturday, 1,486 1,221 14,367 11,262 265 3,105 August 12.................. Week ending Saturday, 1,526 1,331 14,121 12,098 195 2,023 August 19.................. Week ending Saturday, 1,494 1,355 14,510 11,872 139 2,638 August 26.................. 1,535 1,399 13,927 11,769 136 2,158 Tota i....................... 7,616 6,538 71,722 58,483 1,078 13,239 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL