Copra and its products

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Part of The American Chamber of Commerce Journal

Title: Copra and its products
Creator: Day, Kenneth B. and Schnurmacher, Leo
Language: English
Source: The American Chamber of Commerce Journal Volume XVI (No. 1) January 1936
Year: 1936
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Fulltext: 36 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1936 COPRA AND ITS PRODUCTS By KENNETH B. DAY and LEO SCHNURMACHER Kenneth B Dat Leo Schnurmacher The month of December was comparatively quiet as contrasted with the three preceding months. It was getting along to the end of the year, and while there was considerable trading there were no very violent price fluctuations. Copra: Arrivals for December were much better than expected. In Manila receipts were over 5% ahead of those for 1934 and in Cebu receipts were nearly 50% above December 1934. This was a very surprising situation in Cebu where it had been anticipated that Decem ber arrivals might be comparatively short. In Manila a very large portion of the arrivals were applied to outstanding contracts, which were pretty well cleaned up by the end of the year. In Cebu, however, there was a large volume of copra available for sale and the Cebu dealers did considerable business with Europe, with the Pacific Coast, and with the local mills. The month opened with a declining market, due to lack of interest on the part of oil buyers in the United States and elsewhere. After taking in fair lots of copra at from P8.75 to 1*9.00 local buyers backed away from the market and as a result prices dropped to a low of from 1*8.25 to P8.50. Nearly everybody felt that this would be the low for December, and such proved to be the case, for beginning about the middle of the month prices stiffened up and by the end of the month there were buyers of large lots at as high as 1*9.25. Sellers were holding back all through the second half month with a feeling that outside markets, particularly Europe, must improve, and also discounting the fact that arrivals in January were supposed to be com paratively light. Buyers, on the other hand, resisted advancing prices with a feeling that the oil market probably would not justify any un controlled advances in local prices. Export buying really featured the month with Europe interested right along at prices ranging from £12/7/6 to £12/17/6 with a large interest | Spencer Kellogg and i Sons (Philippines) Inc. MANILA, P. I. Manufacturers of Coconut Oil, Copra Meal & Copra Cake We solicit offers from copra dealers afid producers at all times.... P. O. BOX 2383 TEL. 6-75-52 in sundried quality from northern Europe. It was estimated that the November-December business for Europe totalled well over 15,000 tons, most of it for prompt shipment. Pacific Coast buyers of copra were forced to advance their buying prices to compete with this European demand, and business was done at prices ranging from a low of 2.30 cents per lb. c.i.f. to 2.55 cents at the top. In Cebu, where most of the selling interest was concentrated, dealers em phasized prompt shipment and sold to what ever buyer could offer the earliest delivery at approximately equal prices. Statistics for the month follows: Arrivals— Sacks Manila................................................ 426,783 Cebu................................................... 406,034 Shipments— Tons Pacific Coast................... 17,832 Atlantic Coast.................................. 3,118 Gulf Ports......................................... 7,325 Europe............................................... 9,483 China................................................. 15 Total.............................................. 37,775 Stocks on hand in Manila— Beginning of the month................... 41,800 End of Month.................................. 40,690 Stocks on hand in Cebu— Beginning of Month........................ 33,966 End of Month.................................. 25,332 Coconut Oil: Inedible buyers continued to hold their opinion that the maximum they could pay for coconut oil was 4 cents per lb. c.i.f. New York, and for a while it looked as though they might be able to buy at their price early in December. About the middle of the month, however, a renewed edible demand crept into the market and a fair volume of business was done on the Pacific Coast at from 4 to 4-1/8 cents f.o.b. In New York a certain amount of oil was sold at 4-1/4 cents c.i.f. but all in all large buyers held back. Local oil ranged from 17-1/2 cents to 18 cents per kilo. At the end of the year it was the general opinion that oil buyers were not carrying very heavy inventories but were operating cautiously because of the great uncertainty of the fat situa tion for 1936, particularly with regard to possible legislation on the part of Congress and the various States affecting oils and fats. Statistics for the month follow: Shipments— Tons Pacific Coast..................................... 3,837 Atlantic Coast.................................. 12,550 Gulf Ports......................................... 2,468 Europe............................................... 320 China and Japan............................. 14 Total.................................................. 19,189 Stocks on Hand in Manila and Cebu— Beginning of Month........................ 17,583 End of Month.................................... 13,976 Copra Cake and Meal: Very little business developed during the month in cake and meal. Europe seemed to have bought all the copra cake she needed for the time being and was only interested in forward shipment as reduced prices. Sellers, while willing to take some reduction, were not eager to do too much business because stocks were not top heavy and the general out look did not appear too weak. Some little business was done at prices ranging from P30.25 to P30.50 f.o.b. steamer Manila, but on the whole it was a very quiet month. Copra meal was in no great demand in the United States, but odd lots of business were done at prices ranging from $20.00 to $21.50 c.i.f. Coast depending on position and seller. There was a fair carry over of stocks into 1936 with the gceral feeling that sellers were not too well covered for future shipments. The following statistics cover these products: Shipments— Tons Pacific Coast..................................... 2,839 Europe............................................... 8,026 China................................................. 51 Total.............................................. 10,916 Stocks on Hand in Manila and Cebu— Beginning of Month........................ 7,512 End of Month.................................. 8,096 Desiccated Coconut: Other than the sea sonal falling off in demand which always comes with the holidays there was no significant trend in the desiccated market during December. Prices remained unchanged with a base of 7-3/4 cents c.i.f. New York with production and shipments normal. Shipment for December totalled 2,953 tons. At the end of the year, desiccated factories were reported as being IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1936 THE AMERICAN CHAMBER OF COMMERCE JOUNAL 37 adequately supplied with raw’ materials with every prospect of reasonable operation in 1936. The number of desiccated mills actually operat ing increased by four in 1935. General.’ The year 1935 was a pretty good one for the copra and coconut industries. The average price of copra for the year was nearly double that of 1934 and there was at all times a market, either in Europe or the United States, for copra and oil. For the first time in five years producers of copra were enable to break even. There was not, however, any big margin of profit in the business. The general increase in world prices for fats and oils, accentuated by a temporary shortage in the United States and elsewhere, swept copra and coconut oil up with it, but owing to the excise tax the improvement in coconut oil was far less than in other competing products. The most significant development in the American oil market during the year was the swing from inedible to edible business. Coconut oil looked expensive to inedible buyers while appearing reasonably priced to edible buyers. This tendency, if continued, is not a healthy condition for it brings the Philippines into greater competition with the American farmer and dairyman than if the oil goes to its normal market , that for soap and other inedible purposes It is to be hoped that some modification of the tax law may be evolved which will permit the resumption of the previous and more reasonable consumption percentages. Incidentally, the Philippine Government has not as yet recovered any of the proceeds of the excise tax guaranteed it by the excise tax law. These proceeds arc being held up pending the determination of certain suits brought against the Government based on the legality of the excise tax law. What 1936 has in store for us is problematical, but general opinion seems to favor a continuance of erratic markets, with demand largely spot, for at least six months to come. Prospects are good for a normal Philippine copra crop. The Egg-Sucking Dog The harvest-home festival at the plantation this story concerns was given early in December after the rice had been cut and some of it bun dled and shocked. Searching for eggs for the custard, to be made with coconut milk, the land lord found that a dog had got into the hen run and sucked 16 eggs, leaving few for the custard. Going again to the plantation the next morning, he took along his shotgun and one shell; if the guilty dog came around he intended to let him have it. Because a good deal of rice in the 6heaf had been stolen of nights, a few sheaves at a time, the thieves sometimes even cutting the rice, a watchman had been hired to patrol the fields and supervise the tenants during the cutting, drying, shockina and stacking. This nieht the watchman was given the shotgun, and told that after his rounds at midnight he might fire the gun and come back to the house and sleep. So the young man did, but as soon as he fired the gun 15 men who had been in lurking, rose and surrounded him, overpowered him and seized the shotgun. He made a fight to keep the shotgun, but this was vain; gun and all, he had to go along with his captors across a river boundary and a distance of 4 to 5 kilometers to an open lot in a village where more than 100 men and women, communists, whom he counted, were going through a droning ceremony of folk 6ongs, adapted to the new faith, and fervid exhortations from leaders. Already he had taken thought of his life by ceasing resistance and volunteering to join up with his captors. So, the ceremonies over, he was quartered in a hut with his 15 captors, a brace of whom slept either side of him, with legs over his, to make sure that he lay quietly with out trying either to retrieve his gun, or make away with any of the several pistols they had, and attempt escape. The night following he joined 60 of the band on a foray; visiting a distant rice field where the grain had been shocked, each man took a bundle, and thus provided, all returned to the headquarters village. Here each family of the 60 was given a bundle of rice; luzans were 6oon sounding from busy pestles, and by daylight when the constabulary might be comine along, all the rice had been hulled and sacked. This day vigilance over the young involuntary recruit began relaxing after early in the morning, as was told him w:is ceremonial custom during initiation, he was given a communist haircut. It proved to be close cropping. He then washed Luzon Stevedoring Co., Inc. Lightering, Marine Contractors Towboats, Launches, Waterboat Shipbuilders and Provisions SIMMIE & GRILK Phone 2-16-61 Port Area ELIZALDE BUILDING Muelle de la Industria Manila IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL