Sugar

Title

Sugar

Creator

D’Authreau, J. H.

Language

English

Source

The American Chamber of Commerce Journal Volume XXVIII (No. 8) August 1952

Year

1952

Rights

In Copyright - Educational Use Permitted

Fulltext

AMERICAN CHAMBER OF COMMERCE JOURNAL August, 1952 4 ¥ ¥ FOR BETTER SERVICE B.E Goodrich ALL-PURPOSE TIRES Ideal for logging, oil fields, farm trucking, gravel hauling, general dump truck work — wherever you want good traction in the rough combined with cool running on the highway — when ever you want tires to last longer. Off the road — big sharp cifeats pro vide excellent traction, even in soft ground. On the road — open shoulder design lets the tire cool itself as it rolls. NYLON SHOCK SHIELDS built in underneath the tread protect against rocks and impacts — actually shield against shocks to the tire. • TO SEE HOW TO SAVE MQNEY ON T9RE5, SEE —more than 200 dealers throughout the Philippines ★ ★ ★ Desiccated Coconut By Howard R. Hick President and General Manager Peter Paul Philippine Corporation THIS report covers the period from June 15 to July 15 during which time copra and nut prices remained firm but started to skid toward the end, with pros pects of lower prices during the latter part of July. Factories continued operating at low production, the entire industry operating at about 65% capacity, with not much likelihood of improvement before September. Following are the statistics for the month of June: Shippers Pounds Franklin Baker Company.............................................. 4,107,600 Blue Bar Coconut Company......................................... 931,070 * Peter Paul Philippine Corporation....................................... — Red V Coconut Products, Ltd...................................... 1,703,700 Sun Ripe Coconut Products, Inc.......................................... — Standard Coconut Corporation.................................... 195,000 Cooperative Coconut Products, Inc............................ 543,800 Tabacalera.................................................................................... — • Coconut Products (Phil.) Inc................................................. — Total......................................................... 7,481,170 lbs. Note: ’Zamboanga Factory Production.............................................. 140,700 lbs. Lusacan ” ” .............................................. 790,370 ” Total Blue Bar Shipments........................................ 931,070 lbs. Sugar By J. H. d’Authreau Theo. H. Davies S’ Co., Far East, Ltd. THIS review covers the period July 1 to July 31, 1952. New York Market. Market activity has been relatively light during the greater part of the month with refiners continuing a policy of purchasing prompt and nearby raws as needed partly in expectation of shaking out the weaker speculative September longs. The West Coast Pacific strike continued to furnish support to the market. C & H purchased substantial quantities of Cubas for prompt loading at 6.70;/ c.i.f. San Francisco, duty paid, equivalent to about 5.67$/ f.a.s. Cuban basis. Several cargoes of Philippines were also purchased by C & H under East Coast—West Coast option terms on the basis of 6.55/ c.i.f. San Francisco. On Friday, July 18, after the close of business, the U. S. Department of Agriculture an nounced the re-allocation of 200,000 short tons of beet deficit to: Cuba 129,737; Puerto Rico 45,155; Mainland Cane 24,810; Virgin Islands 298. This took the market by surprise and spot dropped at the reopening from Friday’s 5.95/ to 5.88/, accompanied by losses of 10 points and 9 points in the September and November exchange posi tions. The distant positions of March, May, and July also declined from 4 to 5 points. Two theories were advanced by market commentators: one that the Department con sider 6.50//6.60/, duty paid, as being a proper value for raw sugar; the other that the Department preferred to have such announcements out of the way well before the Louisiana harvest rather than to make them later in the year when old-crop prices tend downwards of themselves in the face of seasonal discounts on the new-crop months. The Department, however, is reported to have disclaimed any attempt to influence prices and to have considered the action as routine based upon statistics indicating a deficit and in accordance with the law. The end of the month saw the market recovering somewhat, with sales of August arrivals at 6.45/ and further offerings at 6.50/. The undertone seemed firm and this recovery, albeit slight, was effected despite the termination of the West Coast strike and the removal of the bullish influence of the C & H purchases. Total volume of sales of raws to refiners for the four weeks ending July 24 approximated 170,410 short tons. August, 1952 AMERICAN CHAMBER OF COMMERCE JOURNAL 313 Deliveries of refined sugar for the week ending July 19 totalled 165,826 short tons, compared with 163,392 short tons for the previous week and 114,214 short tons for the corresponding period in 1951. Total United States distri bution to July 19 was 4,500,410 short tons, as compared with 4,489,620 short tons to the same date last year. Molasses. The Molasses Committee of the Cuban Sugar Institute sold 7,500,000 gallons to Publicker at $0.12 per gallon f.o.b. plus 2-3/4% export tax. The pre vious quotation had been $0.20 per gallon. Total ship ments of Cuban molasses to the United States for storage, as of July 15, were 130,900,000 gallons. Only 9,500,000 gallons had been sold for export as of that date. 1952 Cuban production of molasses up to July 15 was approxi mately 400,000,000 gallons. International Sugar Council. Following its meet ing on June 23/24 in London, attended by representatives of 18 governments and by observers from 7 other govern ments and from the FAO, the Council issued a press com munique reading in part as follows: “The Council adopted the report of its. Statistical Committee, estimating free market supplies for the crop-year ending 31 August, 1952, at 7,335,000 metric tons, and estimating requirements at 4,950,000 metric tons. “The Council heard a report from Baron Kronacker, the Chairman of its Special Committee, on the progress made in the drafting of a new International Sugar Agreement. “The Council decided to recommend the governments which signed the Protocol prolonging the present Agreement to 31 August, 1952, to sign another Protocol prolonging that Agreement, on the understanding that as soon as a new Agreement comes into force the Protocol will terminate. To this end the Council decided to press on with the negotiation * of a new International Sugar Agreement and that a meeting of its Special Committee should be held in September.” Local Market, (a) Domestic Sugar. Demand con tinued good throughout the month with prices ranging from P15 to P16, ex mill warehouse, for ordinary centri fugals, and from P15.90 to P16.90 for regular grade washed. The Sugar Quota Administration, in the face of recurrent fears of a shortage materializing later in the year, has estab lished a tentative domestic quota for the 1952-53 crop of 299,000 short tons, and it is thought that the first 195253 crop millings will be charged against the domestic quota until the local stock position is assured. This expectation has kept the market on a fairly even keel. In addition to these steps, the Sugar Quota Administration is permitting the remainder of unsold export sugar to be converted into domestic. (b) Export Sugar. The month under review has seen little or no activity in the United States export sugar market, most of the crop being already disposed of and most tra ders having withdrawn from the market. Attention is being directed in political circles to the increasing quanti ties of so-called Muscovado sugar being shipped to Japan. General. 1951-52 Milling. Of the 27 centrals milling for the 1951-52 crop, 24 have finished milling, with a pro duction of 1,039,789 short tons. The production of the 3 centrals still milling is estimated at 158,306 short tons, of which 119,795 short tons have been produced up to July 13, or a total production to date of 1,039,789 short tons, indicating a final production of 1,078,300 short tons, or 4,000 short tons in excess of the previous official estimate. ADVERTISE in the JOURNAL ¥ It goes straight to the desks of leading government and business execu tives every month Manila Hemp By M. S. Robie General Manager Columbian Rope Company of Philippines, Inc. June 30 — July 30 DURING the first two weeks in July the market for Manila hemp, which had steadied somewhat during the latter part of June, showed mixed trends which were characterized by continued sizable buying on the part of Japanese spinners and a fairly steady market for certain selective grades of Davao and non-Davao in both New York & CO.Z INC. j. m. menzi bldg. rein a regente cor. soler manila tel. 2-79-27

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