Sugar

Title

Sugar

Creator

Gordon, G.G.

Language

English

Source

The American Chamber of Commerce Journal Volume XXIV (No. 1) January 1948

Year

1948

Rights

In Copyright - Educational Use Permitted

Fulltext

It is expected, however, that after January 1, the situation may be a little clearer. Meanwhile it was expected that buyers, especially those in the United States, will mark time. Whether the New Year will bring better prices or lower prices or whether the market will stabilize itself at any reasonable level, was anybody’s guess. Opinions differ radically. One thing appears certain, however, and that is that Philippine copra exports for 1947 have hit a high-point which will not be duplicated in 1948 and perhaps for several years thereafter. Desiccated Coconut By Howard R. Hick President and General Manager Peter Paul Philippine Corporation THIS report covers the calendar month of November 1947. During this period, copra prices and equivalent nut prices reached the highest point in history, and toward the end of the period, nuts could not be purchased for equivalent copra prices; sellers were holding, requesting premiums over copra values. This was the first time since the war that sellers took such a stand and is a mark of the degree of competition existing today in the raw-material market. This month has shown a marked increase oompetitively, as all present producers worked near the 100% capacity and new producers broke ground or hastened the erection of new factories. Red V Coconut Products, Inc., a Britishcontrolled firm, broke ground in Mindanao for the purpose of erecting a second factory. Their plans include the use of the most modern and most efficient equipment available and their future production capacity will be larger than their pre-war production. Mr. W. H. Stopford, formerly Provincial Manager for Franklin Baker Company and now General Manager for Red V Coconut Company, recently returned from London to take over his new duties. It is reported that several newcomers are entering the field. A company is being formed and some machinery is being installed at Pagsanjan, Laguna. Also, another factory is being erected in Lopez, Quezon province, and a second one in Gumaca, Quezon. This marks the develop ment of a new producing area and a trend to minimize the concentration of factories in one large district. SHIPPING STATISTICS OF MANUFACTURERS OF DESIC CATED COCONUT FOR THE MONTH OF NOVEMBER, 1947 Blue Bar Coconut Products Co.... 1,632,800 Canlubang Sugar Estate ......... Shipped by Franklin Baker Co. Cooperative Coconut Products.. . . 205,000 Franklin Baker Company............... 3,514,780* Marsman and Company, Inc.......... 155 JOO Peter Paul Philippine Corp............. 1,680,000 Philippine Desiccated Co.. . ........... Shipped by Blue Bar Co. Red V Coconut Products................ 1,212,500 Sun-Ripe Coconut Products........... 935,000 United Coconut Products, Inc....... 235,200 ♦San Pablo production..................................... 28,582 bags 2,673,780 lbs. Canlubang production..................................... 8,410 ” 841,000 lbs. Sugar By G. G. Gordon Secretary-Treasurer, Philippine Sugar Association Ata recent conference between sugar shippers and . representatives of the Associated Steamship Lines, it was agreed that the sugar freight rate to Atlantic Ports be established for a period of six months at $18 per long ton, net weight delivered. Following a public hearing held on October 20, 1947, the War Damage Commission has issued the following ruling: 1. Claims for milled sugar should be filed by the owner of the sugar whether it be the central, planter, or a third party. 2. Claims for sugarcane, whether standing or cut, will be recognized only when filed by the planter who held the sugar marketing-allotment in connection with that cane. 3. The value of milled sugar for the purpose of payment of war damage claims shall be fixed at the average of the 1939-1940 ex-bodega Manila prices. 4. The value of sugarcane at the time of loss shall be established in each case on the basis of evidence submitted by the claimant or otherwise obtained by the Commission. The members of the Executive Committee of the Philippine Sugar Association were the luncheon guests of Mr. Jose G. Sanvictores at the Canlubang Sugar Estate on Sunday, December 14, 1947. Advantage was taken of the opportunity to observe the various experiments being conducted at Canlubang. On the invitation of President Roxas, a delegation of sugar planter and millers conferred with him in Baguio on December 5, 1947. Among matters discussed were the means by which the Government could assist in tfie reha bilitation of the sugar industry, the Government’s desire to keep the price of domestic sugar at a reasonable level, and the possibility of selling export sugar from the 1947-48 crop to the U. S. Army. Following this conference, Philippine Sugar Order No. 4 was issued, raising the quota for local-consumption sugar to 150,000 short tons and ordering the release of 50% of all sugar milled to the local market as from December 1, 1947. This has resulted in a drastic decline in the wholesale price of local-consumption sugar, and sugar is now being sold much nearer pre-war value than any other food-com modity locally produced. Following the conference in Baguio, Philippine sugar producers negotiated with a representative of the U. S. Army for the sale of a large proportion of the 1947-48 ex port sugar on the basis that all sugar covered by this trans action would be recognized by the United States Govern ment as having been delivered against the Philippine export quota, and that such a transaction would in no way pre judice the quota rights in the United States market of Philippine sugar. These negotiations are still in abeyance, pending further advices from U. S. Army authorities. Quotations on the New York Sugar Exchange for the period from the second half of November to the first half Total Sales.................................................. of December ranged as follows: Close Sales High Low May, 1948............................. 5.46 5.20 5.45 57,300 tons July, 1948............................. 5.49 5.20 5.47 28,950 ” September, 1948.................. 5.50 5.21 5.48 12,100 ” 600 ” December, 1948.................. 5.38 5.18 5.49 March, 1949........................ 5.20 5.00 5.20 4,300 ” 103,250 tons Manila Hemp By Murray Cook International Harvester Company of the Philippines November, 1947 STARTING with a firm opening, the market for Manila hemp during the first week of November remained steady. Davao opened at P51 per picul for “JI”, with exporters content to purchase at this price any hemp offered by dealers. Offerings in the New York market on the basis of DA/F at 25-l/4fi, DA/I at 24j*, DA, JI at 23-1/2^ were ignored by United States buyers. During the middle of the second week, buyers appeared at these prices, and New York sellers quickly raised their ideas of price. This was promptly reflected in Davao and exporters advanced their price of DA7JI to P52. Buyers in the United States continued to follow the market, creating a firm situation in Davao. By November 25, sales were made in New York, 18

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