Rice review
Media
Part of The American Chamber of Commerce Journal
- Title
- Rice review
- Language
- English
- Source
- The American Chamber of Commerce Journal Volume XVIII (No. 8) August 1938
- Year
- 1938
- Rights
-
- Fulltext
- 42 THE AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1938 downward under the influence of the re served attitude adopted by refiners and the interference caused by strikes in some of the refineries. The market during the latter part of the month was dominated by two factors: fear of increasing pressure on the part of Cuban holders, who still have a large proportion of their quota to sell, and fear of increasing competition from the beet sugar interests, who gave indications that they proposed to make a determined ef fort to dispose of their entire allotment for 1938. Though the official quotation for cane refined remained at 4.50c* per pound throughout the month, some re finers booked orders privately at 4.40c* UNDERWOOD SUNDSTRAND ADDING AND LISTING MACHINES Only | 0 operating keys and this move was met by a reduction in the beet refined quotation to 4.20c*. Ir. face of these depressing factors, raw prices declined and, by the end of the month, had returned to the 2.75c* level. Quotations on the Exchange have fluc tuated as follows during the month: — High Low Latest July, 1938 .......... 1.86c* 1.77c* Sept., .......... 1.92c* 1.81c* 1.81cJ Jan., 1939 .......... 1.97c* 1.87c* 1.86c* Mar., .......... 2.01c* 1.90c* 1.90c! May, .......... 2.04c* 1.94c* 1.94c* July, .......... 2.08c* 1.97c* 1.97c* Latest statistics of world stocks were 5,096,000 tons, compared with 4,187,000 tons last year and 4,704,000 tons in 1936. Sales of Philippine sugar during the month amounted to 72,661 long tons at prices ranging from 2.70c* to 2.85c1, while resales amounted to 7,000 tons at 2.72c* to 2.85c!. Locally, exporting prices fluctuated in accordance with movements in New York. About the middle of the month, they rose to P6.75c* per picul, at which price a con siderable volume of business was transacted and it is believed that the amount of sugar still remaining in producers’ hands is very small. Prices have now declined again and, at the close, exporters quota P6.40 in a completely inactive market. The domestic consumption market was dull throughout the whole month with buyers content to cover their require ments from day to day on the basis of P3.70/P3.80 per picul for mill run centrif ugals. i j Exports to the United States during the month amounted to 45,426 tons centri fugals and 9,824 tons refined. Total ship ments from November 1st, 1937 to July 31st, 1938 were as follows:— Centrifugals .......... 699,907 tons Refined ................... 37,263 ” dication points to further hardening of val ues in the coming months. Despite heavier receipts both by rail and water, brought about by some seller’s eagerness to take advantage of improved prices, the market was able to absorb all offerings and to sus tain its strength until the close. It was very apparent that stocks of palay in the primary markets are nearing exhaustion and what little still remains available for the trade, is mainly in strong hands and is being held for still higher prices. Opinion still persists in well informed quarters that inspite of the efforts of the Naric to keep prices within the limits it has set, the situa tion may run out of control in certain sec tions of the country not served by Naric rice. For the present, the situation seems to be well in hand at least in all places where the National Rice and Corn Corpora tion maintiins selling organizations or whore Provincial and Municipal Treasurers handle the sale and distribution of Naric rice. Manifested arrivals by rail during the month amounted to 176,599 compared with 125,092 in the preceding month; by water 34,829 against 38,231 in June. Total ar rivals, however, by rail during the first seven months of 1938, fall short by about 150,000 cavanes compared with the same period in 1937 as may be gleaned from the following figures: 19.37 19.38 Months Monthly Total Monthly Total January .. . 184,758 194,586 February ... 171,115 191,100 March . . . . 186,530 166,453 April . . . . 176,831 107,882 May .. . . . . . 150,383 123,954 June ........ 158,499 125,092 July .... . . . 203,269 176,599 TOTAL . . . . 1,231,3185 1,085,666 Hit a New High in Business Efficiency by Installing the UNDERWOOD SUNDSTRAND Telephone 2-31-31 and Ask for a Demonstration UNDERWOOD ELLIOTFISHER SALES AGENCY 30-32 Escolta Manila Sole Distributors SMITH BELL & CO., LTD. Cebu — Manila — Iloilo Total .......... 737,170 tons RICE REVIEW JULY, 1938 By Dr. V. Buencamino Manager, National Rice & Corn Corporation We interpret this decrease in arrivals as a reflection of the relative scarcity of the cereal now existing in the Central Luzon provinces which supply Manila and the other centers of consumption with their rice needs. The Naric, in response to the popular clamour of the people for cheaper rice, fixed a set of prices to govern its sales for the year. These prices are: RICE The market gained further strength during the month under review and while prices did not advance material ly in view of the restraining effect of the Naric en trance into the market, every inex-bodega Macan No. 2 . Ramay No. 2 . f.o.b. steamer or railroad car P6.65 P6.67 P6.60 P6.62 per sack of 57 kilos net. These prices apply to Manila and all the Central Luzon provinces. If intended for shipment outside of Manila, actual ex penses for freight and handling have to be added. It is figured out, however, that even with the actual expenses incident to IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1938 THE AMERICAN CHAMBER OE COMMERCE JOURNAL 43 freight and handling, Naric lice could still be sold to advantage in distant places. De mand for Naric rice continues to improve from day to day, a condition indicative of the scarcity which exists in many places. The Naric, however, is confident that with the present supply on hand, it has enough to meet the requirements of the country until the new harvest becomes avialable and there is no fear to entertain that any section of the country may face hunger as a result of rice shortage. The month opened very firm at P6.65 for second class Macan. The market would have undoubtedly registered important ap preciation in values were it not for the prices set by the Corporation. Prices, nevertheless, showed persistent tendency to advance. The month closed strong regis tering a net gain of P0.05. Heavy demand was felt from Samar, Leyte, Cebu, Capiz and the Bicol provinces. Shipments by water from Manila to the provinces amounted to 184,682 cavanes from July 1 to 29 only compared with 170,033 in the preceding month. It is general ly accepted that demand will broaden fur ther in the coming months owing to the de pleted stocks in the consuming markets. PA LAY As in previous months, palay prices again led the advance, indicating a speculative tendency on the part of millers and private merchants. At a time when rice was sell ing in Manila at P6.60, palay should not go beyond P3.30 in the provinces but actual sales during the month were registered as high as P3.45. In Cabanatuan closing quo tations range from P3.28 to P3.33 which were above the parity of rice prices in Ma nila. FOREIGN MARKETS Saigon registered an appreciable im provement in prices. Latest quotations ranged from piastres 7.07 to piastres 7.12, per sack of 57 kilos net f. o. b., Saigon. These prices are equivalent to P7.25 and P7.28 respectively, pei- sack placed at bodega, Manila, duty paid. Bangkok likewise re gistered some improvement in price. FOREIGN EXCHANGE By Leon Anciieta Manager, Foreign Dept., P.N.B. Starting with a heavy demand, the dollar in the local exchange market opened strong at % 'A pr. for T.T. on New York to customers, and pr. for inter bank sales. Sup ply from trade Channels appeared scarce as the de mand war largely met by local banks which kept ample supply of dollar funds. The rate continued at •%% for T.T. New York until the close of the first fortnight when it moved up to % % pr. Correspondingly, interbank T.T. sales moved up from 16% to 9/16% pr. The continued sustained strength of the dollar is reflected from the trade figures dur ing the first semester of the year, which showed exports amounting to P133,000,000 and imports Pl.53,800,000, or an adverse foreign exchange balance of P20,800,000, compared with the Islands’ visible exchange position during the same period in 1937 when exports totalled P166,000,000 and im ports P109,000,000 or a visible favorable foreign exchange balance of P.57,000,000. Gold production, which is not included in the above figures, reached P31,000,000 during the first semester of the year, compared with P24,000,000 of the previous year for the same period, the increase not having been sufficient in supporting the peso to bring the exchange rate to a level lower than that at which the Exchange Standard Fund operates. Another important factor which operated to strengthen the dollar is the exceptionally strong peso position of local banks. As of July 16, 1938, local banks had cash on hand amounting to P78,000,000 compared with an average of P47,000,000 during July, 1937. Sixty-day and sight bills remained strong at par and 14 % pr., respectively, as in the MANDALOYON’S MODEL HOUSE NEAR WACK-WACK GOLF CLUB Ortigas, Madrigal y Cia. S. en C. Filipinas Building MANILA Telephone 2-17-62 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL