Copra and its products

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Part of The American Chamber of Commerce Journal

Title: Copra and its products
Language: English
Source: The American Chamber of Commerce Journal Volume XVIII (No. 8) August 1938
Year: 1938
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Fulltext: August, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 45 COPRA AND ITS PRODUCTS by KENNETH B. DAY AND LEO SCHNURMACHER Kenneth B. Day Leo Sciinurmacher The month of July was a comparatively quiet one. Markets were fairly weak at the beginning- of the month, but firmed con siderably toward the middle of the month, only to fall back gradually at the month’s end, when prices were identical with those of the first of the month. COPRA—Copra receipts in Manila and Cebu were extremely heavy in July and both ports registered increases of over 50% as contrasted with June. As contrasted with July, 1937, Manila receipts were up over 507, and Cebu receipts over 25 7<. Total Manila and Cebu receipts for the July, 1938, show an as conperiod January to increase of slightly over 40% trasted with the corresponding period last year, which leads to the belief that with normal receipts from now on the 1938 crop should show an increase of at least 107< over that of 1937. Of course, in making the above statements we are not consider ing direct exports from provincial points, but inasmuch as these exports are far heavier than they were in 1937, the ratio will probably hold true. The month opened rather weak with sellers’ ideas P6.00 in Manila for resecada and buyers rather relunctant to pay it. As the month wore on, in view of strengthened outside markets and in spite of heavy arrivals, copra prices gradually increased to a point where considerable business was done at P6.75 about the middle of the month. After that the market declined irregularly until at the end of the month sellers were again offering at P6.00 with buyers’ ideas P5.75. The flexibility of the market was affected considerably by out standing contracts made earlier in the year for July-August delivery. In Cebu/ prices ranged about the same as Manila, but the copra export market affect ed Cebu more than Manila and kept prices steadier throughout the month. It may be noted that Cebu exports of copra for the first half year were slightly over half of the total exports from the Islands. The European market fluctuated over narrow margins throughout the month, reaching a high of £10/10/0 for sundried and a a low of £9/17/6 for F.M., with an average spread between the two grades varying from [>/- to 10/-. On the Pacific Coast copra increased in price to a high of 2.05<, but declined grad ually to a low of 1.85< at the end of the month. Provincial prices in the Manila district Were constantly higher than base prices in Manila, but in Cebu provincial prices fol lowing dealers quotations very closely. Statistics for the month follow: Arrivals .......... Manila, 563,8 Cebu, 493,3 Shipments .......... Pacific Coast, Gulf Ports, Europe, China and Japan Other Countries, 29,103 Metric Tons Beginning of Month Stocks on hand in Manila, 34,615 Tons Cebu, ' 26,416 ” Metric Tons End of Month 35,031 Tons 39,865 ” COCONUT OIL—The month opened with buyers’ ideas 3-’/2 cents c.i.f. New York For Every Need and Purpose WORKMEN’S COMPENSATION PUBLIC LIABILITY AUTOMOBILE ATLAS ASSURANCE CO., LTD. THE EMPLOYER’S LIABILITY CONTINENTAL INSURANCE CO. ASSURANCE CORPORATION, LTD. ORIENT INSURANCE COMPANY INSURANCE COMPANY OF NORTH AMERICA General Agents ELSER, I ’ Thirteenth and Boston Streets, Port Area, Manila, P. I. Telephone 2-24-28 P. O. Box 598 and with comparatively little buying in terest. Later in the month, however, buy ers became more interested and prices ranged up to 3-% cents c.i.f. New York with the preference on late shipments. Thereafter the market eased off gradually until at the end of the month buyers were again willing to pay 3-36 cents with sellers holding for higher. The same thing happened to the Pacific Coast. The market opened at 2-% cents f.o.b. for tank cars and gradually increas ed to 3-36 cents, after which it declined again to 2-% cents at the end of the month. Particular on the Coast, the prompt demand was from small refiners and futures com manded 367 better than spot deliveries. In the East large soapers were not particularly interested except in shipments for the last quarter of 1938. Statistics for th emonth follow: Shipments .......... Pacific Coast, Atlantic Coast, Gulf Ports, China and Japan, Other Countries Metric Tons Metric Tons End of Month 20,245 Tons 15,883 Beginning of Month Stocks on hand in Manila and Cebu, 14,686 Tons COPRA CAKE AND MEAL—'There was not much doing in the cake market. Ham burg base prices ranged up to $32.00, pos sibly $32.50 c.i.f., the local equivalent rang ing from P41.00 to P43.00 f.o.b. Not much business was transacted as sellers were (Please tun to page 48) FIRE MARINE ACCIDENT PLATE GLASS IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 48 THE AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1938 RAIL COMMODITY MOVEMENTS By LEON M. LAZAGA Traffic Manager, Manila Railroad Company The volume of commodities received in Manila during the month of JULY 1938, via the Manila Railroad Company arc as follows: Rice, cavanes......................... 188,769 Sugar, piculs......................... 122,999 Copra, piculs......................... 170,693 Desiccated Coconuts, cases . . 34,523 Tobacco, bales....................... 4,979 Lumber, board feet............... 973,982 Timber, kilos......................... 2,437,000 The freight revenue car loading statistics for four weeks ending June 18, 1938, as compared with the same period of 1937 are given (right) : FREIGHT REVENUE CAR LOADING COMMODITIES NUMBER OF 1 FREIGHT FREIGHT CARs] TONNAGE 1 Increase or Decrease 1938 1937 | 1938 1937 j| Cars Tonnage Rice .............................. Palay ............................ Sugar ............................ Sugar Cane .............. Copra ............................ Coconuts ...................... Molasses ...................... Tobacco ........................ Livestock .................... Mineral Products ... Lumber and Timber.. Other Forest Products Manufactures ............ All Others including L.C.L........................... | 876 | 1,233 |12,557 | 15.890 | 106 | 145 | 1.270 | 1.831 372 644 11.149 | 20,242 906 596 | 7.205 | 4.963 | 83 89 | 863 | 893 46 11 | 1,615 | 306 - 3 | - | 17 39 76 292 | 699 68 12 456 | 68 614 298 4.476 | 3.629 213 155 4,847 | 3,845 1 | 3 81 28 | 314 | 367 4,573 | 5.528 3.234 | 3,501 21.477 | 21.132 | | ( 357) | ( 3,333) | ( 339 | ( 661) | ( 272) | 1 8.793) 310 | 3.242 ( 6) | ( 30) 35 | 1,309 ( 3) | ( 17) ( 37) | ( 407) 56 | 288 216 | 847 | 58 | 1.002 ( 2) | ( 20) I ( 53) | ( 955) ( 267) | 345 TOTAL 6.772 | 7,133 171,188 | 78.171 | ( 361) | ( J>.983i SUMMARY Week ending June 26, ” ” July 2, ......................... 16’. ............................... 23, 1.373 | 1,306 | 1.394 | 1,338 | 1.361 | 1,409 116,346 | 1,353 113,700 | 1.270 |15,943 | 1.539 H3.901 | 1.562 113.198 | 14,650 | 12.884 13,331 18,294 19,112 ( 36) | ( 47) ; 124 | ( 201) | ( 201) | 796 816 1,712 ( 4.393) ( 5.914) I 6,772 | 7,133 |71.188 | 78,171 ( 361) | ( 6,983) NOTE—Figures in parenthesis; indicate decrease. Copra and. .. (continued from page 45) generally well covered and buyers were holding off, expecting lower prices. The Pacific Coast meal market was spotty with practically no demand. Whatever business was done commanded a price of from $26.00 to $27.00 c.i.f. Pacific Coast. Statistics for the month follow: Shipments .......... Pacific Coast, 2,425 Metric Tons Europe, 7,924 10,349 Metric Tons Beginning End of -Stocks on hand in Manila of Month Month and Cebu, 6,071 Tons 8,501 Tons DESICCATED COCONUT-—The desiccated market was not quite as good in July as it had been in June. Trading was a little slower but there were no changes in base prices in the New York market. Local factories maintained approximately the same production schedule as in June with some of the larger factories operating on part time and some of the smaller ones on full time. Nuts were plentiful and re asonable in price. It is reported that June nuts were particularly heavy in weight per nut, and July nuts, while not as good, were still very satisfactory and better than the average. Exports for the month totalled 3,315 me tric tons, which is only slightly less than June shipments. GENERAL—At the first of August the copra and oil situation was a very peculiar one. Everything points to an extremely heavy copra crop for the balance of the year, which under ordinary circumstances would mean lower prices. At the same time, there is a certain undercurrent of op timism both in the United States and in Europe, indicating the possibility of good business for the next few months. Under these conditions, the best guess would seem to reflect a comparatively stable market for Augujst and September, with minor fluctua tions controlling prices. Buyers were expecting to be able to pur chase their commitments easily, but in view of the relatively low copra prices, were doubtful as to whether the market would drop appreciably. At the same time, world conditions are so mixed up that anything can happen, and most traders were main taining an even balance rather than taking much of a position one way or the other. Freight rates were confusing. Several charters to Europe were made during the month at a price advantage of approxima tely P5.00 per ton under the Conference rate. The Atlantic freight rate on coconut oil was reduced effective August 2nd, from $13.00 to $12.00 and it was expected that freight rates on copra and oil to the Pacific Coast might be modified sometime during the next month. All in all, at the beginning of August, future markets were anybody’s guess. BUSINESS AND PROFESSIONAL DIRECTORY ft ft » >i> CHINA BANKING CORPORATION MANILA, P. I. Domestic and Foreign Banking of Every Description P. O. Box 1394 Telephone 2-20-70 J. A. STIVER Attorney-At-Law—Notary Public Certified Public Accountant Administration of Estates Receiverships Investments Collections Income Tax 121 Real, Intramuros Manila, P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL