Copra and its products
Media
Part of The American Chamber of Commerce Journal
- Title
- Copra and its products
- Creator
- Day, Kenneth B.
- Schnurmacher, Leo
- Language
- English
- Year
- 1937
- Rights
-
- Fulltext
- January, 1937 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 39 COPRA AND ITS PRODUCTS ’ By KENNETH B. DAY and LEO SCHNURMACHER Kenneth B. Day 1936 went out in a blaze of glory as far as copra and coconut oil markets were concerned. During December both copra and oil advanced about 20% over November levels and at the end of the year copra was more than double its early January price, and coconut oil prac tically double. Copra—Copra arrivals in December were slightly higher than those in November but fell approximately 30% short of December 1935 arrivals. In fact, they were short of the 10-year average. When November ended, copra was fairly firm at P 16.25 for resecada in Manila. During Leo Schnurmacher the month of December the price went up steadily and without a check to a high of 1*20.50 at the very end of the yeir. At all times there were more buyers than sellers, and with America asking for spot oil and willing to pay fancy prices for it, there was every incentive for buyers here to concede in the matter of price, thus falling into the hands of speculators with ac cumulated stocks. The accumulation of stocks, however, is now becoming a problem, for with copra at over 1*20.00 any volume of copra re presents a large financial investment. In the United States, Pacific Coast crushers increased their ideas during the month from 4.25 cents to 5.25 cents. Crushers were somewhat handicapped, however, by lack of space, the strike on the Pacific Coast beginning to make itself evident through shortage of space. There still was some tonnage available, however, and crushers did their best to fill up this tonnage in anticipation that it would be hard for them to ship in January and February. The European market varied from a low of £18/17/6 to a high of £22/10/0, but at no time did this market seriously threaten to take much business away from the Pacific Coast and local crushers, whose prices were always at least £2 higher than European buyers were offering. Copra exports were somewhat below expect ation, but very little empty space available for copra left the Islands. Statistics for the month follow: Arrivals— Bags Manila............................................... 292,048 Cebu........................................ ,. ... 296,214 Shipments— Pacific Coast.. Atlantic Coast Gulf Ports.... Tptal. Stocks on hand— Manila.............. Cebu................. 17,572 Beginning End of of Month Month Tons Tons 24,641 22,363 18,793 17,317 WORKMEN’S COMPENSATION PUBLIC LIABILITY AUTOMOBILE 1 ---- ------ATLAS ASSURANCE CO. LTD. CONTINENTAL INSURANCE CO. Coconut Oil—The big feature in the coconut oil market for December was the premium available for spot oil. At the beginning of the month coconut oil was selling at 6-3/4 cents c.i.f. New York and 6-1/2 cents f.o.b. Pacific Coast. These prices gradually climbed to a point where by the end of the month oil could be sold at 8-3/8 cents on the Atlantic Coast and 8-1/4 cents on the Pacific Coast. These prices were too low in comparison with copra equi valents, but spot oil was commanding a premium anywhere from 1/8 of a cent to 1/2 cent over forward positions and it was these spot prices which determined the copra market in the Philippines. The demand for oil was, as recent ly, very spotty; but peculiarly enough there was some demand from soapers in a small way, with refiners who were fairly well supplied with stocks showing a temporarily lessened interest. It is anticipated that refiners will have to come in later on and may be forced to pay higher prices thereby. Statistics for the month follow: Shipments— Metric Tons Pacific Coast..................................... 1,400 Atlantic Coast................................... 6,998 Gulf Ports......................................... 1,499 China and Japan............................. 11 Other Countries............................... 1 Stocks on hand in Manila and Cebu. Beginning of Month 'Pons 6,847 9,909 End of Month Tons 9,708 INSURANCE For Every Need and Purpose ORIENT INSURANCE COMPANY INSURANCE COMPANY OF NORTH AMERICA General Agents E. E. EIME. INC. Telephone 2-24-28 — MANILA — Kneedler Building Copra Cake and Meal—In spite of the fact that large stocks of meal were lying afloat off Los Angeles and other Pacific ports, an unex pected demand for copra meal made its appear ance along toward the middle of December and boosted the price from S27.00 to S30.50 per short ton c.i.f. This demand was for future ship ments up to May and June and was fairly heavy in volume. The European copra cake also advanced from S30.00 to around S34.00—but these prices, which work out approximately 1*46.00 per metric ton f.o.b., were less attractive than those obtainable for meal, and sellers were sufficiently covered with forward business to make it unnecessary to unload stocks at what appeared to be comparatively unfavorable prices. It is anticipated, however, that some selling interest must develop in copra cake to Europe in the early part of 1937, when presum ably meal will be less in demand owing to the proximity of Spring. Statistics for the month follow: Shipments— Metric Tons Pacific Coast..................................... 2,721 Atlantic Coast................................... 1,029 Gulf Ports......................................... 2,790 Europe............................................... 4,351 Total............. ................................. 10,891 Stocks on hand in Manila and Cebu........... Beginning End of of Month Month Tons Tons 7,248 4,120 D siccat d Coconut—The increase in the value of copra has caused a corresponding in crease in the price of coconuts for desiccated. While the sales price of desiccated in the United States has firmed considerably, it has not kept pace with the cost of nuts. Desiccated factories are finding it difficult to secure sufficient nuts even at increased prices. In addition, the marine strike in the United States has cut down available shipping and has forced a considerable quantity of desiccated to be routed through {Please turn to page 40) FIRE MARINE ACCIDENT PLATE GLASS THE EMPLOYER’S LIABILITY ASSURANCE CORPORATION LTD. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 40 THE AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1937 LUMBER REVIEW By FLORENCIO TAMESIS Director, Burtau »f Forutrj Lumber and timber exports in October fell 36% below the September figure but was 65% greater than in October, 1935. Japan’s consumption of logs continued comparatively heavy. Log exports to this market constituted 70% of the total lumber and timber exports during the month under review. For the first time, shipments of logs, amounting to 1,604,416 board feet, were made to Korea. An in crease in Japan’s already large consumption of logs is expected in the next few months as several licensees or concessionaires dealing with Japanese importers are putting up addition al machineries in their concessions with the view to increasing production. Demand in the United States in October registered a decline of 40% from the previous month and 15% below October last year. Ship ments are being greatly affected by the maritime strike in the above country. Difficulties in finding bottoms for the Pacific Coast and even for the Atlantic Coast are being encountered by local exporters. Shipments to China during the month under review consisted entirely of sawn lumber, amount ing to 183,168 board feet. This is 402% greater than the October figure last year, but is consider ably below the previous month, which amounted to 5,860,104 board feet. The total exports to China in September was, however, considered to be unusually large. Shipments to Australia in October consisted of 88% logs and 12% sawn lumber, totaling 179,352 board feet. Total exports to Europe during the month under review declined slightly from the October figure in 1935, but was 2-1/2 times greater than the previous month. The • increase was chiefly due to larger shipments made to Great Britain and Ireland. The local markets continued strong and prices are on the upward trend. Mill production in October registered a slight increase compared with the same month in 1935. Mill inventories increased about 3,000,000 board feet compared with October last year. The following statements show the lumber and timber exports, by countries, and the mill pro duction and lumber inventories for the month of October, 1936, as compared with the corres ponding month of the previous year. Lumber and Timber Exports for the month of October 1936 CustomsDestination Board • Feet Declared Value Japan........................ .. @13,297,064 1’240,512 United States.......... ... 2,117,456 147,253 Korea........................ . .. 1,604,416 32,484 Great Britain.......... 895,064 69,718 British Africa.......... 392,624 25,550 China........................ 183,168 9,297 Australia................... 179,352 5,891 Ireland...................... 46,216 3,474 Hawaii...................... 28,832 3,665 Portuguese Africa... 25,440 1,274 Norway..................... 13,144 1,036 Belgium.................... 18,656 1,561 Singapore....................... 2,968 800 Sweden........................... — — Hongkong....................... — — Total................... . 18,804,400 1*542,515 1935 CustomsDestination Board Feet Declared Value Japan.......................... 6,710,224 P 108,613 United States............ 2,510,504 182,892 Korea.......................... — — Great Britain............ 930,680 71,275 British Africa............ 215,816 12,573 China.......................... 36,464 1,816 Australia..................... 864,536 47,325 Ireland........................ 81,832 7,189 Hawaii........................ 848 80 Portuguese Africa... . — — Norway....................... 13,568 2,361 Belgium...................... — — Singapore.................... — — Sweden........................ 7,208 963 Hongkong................... 424 45 Total................... .. 11,372,104 P435.132 Not:-: This represents mostly solid log scale, that is, 424 board feet to a cubic meter. For 50 Mills for the month of October Lumber Deliveries Month from Mills 1936 1935 Oct................................. ,19,329,336 20,550,345 Lumber Inventory Oct................. 1936 ............. 43,071,260 1935 40,732,316 Mill Production 1936 1935 Oct................. ............. 21,556,244 21,266,517 Not/: Board Feet should be used. Copra . . . (Continued from page 39) Canadian ports, which increases the expense of shipment. Shipments for the month totalled 2,594. metric tons. All of these factors are cutting down pro duction and apparently will further decrease production in the near future. G n hai.—-1936 w:is on the whole a larger copra year than 1935, arrivals being approx imately 5% over those of 1935. This increase, however, was very unevenly distributed, the first half year showing an increase of 25% and the second half year a decrease of perhaps 8%. This factor upset trading conditions a good deal because in the first half of 1936 European buyers absorbed much of the Philippine production with American buyers laying back for the larger supplies expected the second half. When these larger supplies failed to materialize, and in fact proved short, this combined with the drought, the rising prices in all commodities the world over, and a desire to build up stocks, was res ponsible for the situation whereby copra and co conut oil advanced as they have not since 1920. 1936 should have been a good year for producers, and probably was. For mills it was an average year, for most mills could not afford to speculate on what appeared to be an unreasonable market. Prospects for 1937 are dubious. It is pro bable that copra will be short, particularly in the North part of the Islands for the first half year. In the second half year there should be a good deal of copra, but it is then entirely possible that the present demand for spot oil will not continue, for by that time America’s own supplies of oils and fats will be replenished. It is a significant fact that although imports into the United States of oils and fats in the past two or three years have been increasing by leaps and bounds, the only important commodities not sharing in the increase have been coconut oil and copra. More and more, copra and coconut oil are feeling a competition of other more cheap ly produced oils and fats, and the higher prices go the narrower becomes the use of coconut oil and copra. It is very necessary, therefore, to watch the situation closely, for there can be no assurance about prices in 1937, although for the first few months at least the prospects look favorable. Annual Meeting The annual meeting of the Chamber of Com merce for the election of three directors in the board of nine, and for other purposes, is set for 5 p. m. Friday, January 29. The secretary has mailed notices to all active members and inclosed proxies that should be executed and mailed back to him in the event a member will not be at the meeting. Tell It to the Judge Only occupied vehicles are allowed on the Escolta. No cruising taxicabs one way. Cars and carromatas, ’ware one way streets unless going the right way. Tuesdays and Saturdays are market days. There’s plenty of traffic, and the fine for ob structing it—P2.50. But speeding is an offense, too. The moral of And Sudden Death is enforced by the curt words “P20.00”. Calesa ponies that are hurt or lame take their drivers to the Municipal Court of Judge Locsin at Bonifacio and Aduana, if the vehicle squad is nearby. Yet with only 10 men, the job is only begun. Parking had better be done according to rule, because if not, it gets in the hair of the traffic squad. They want to teach all drivers the new ways. Once the lesson is finished, know your stuff or else I Average Metal. . . (Continued from page 32) (By United Press) NEW YORK, Jan. 19.—The market for man ganese and chromite continued firm today, prices temaining at the levels established last month. Closing quotations today: MANGANESE: 22.4 per pound, C.I.F. South African, 48-51 per cent, 30. Brazilian, 46-48 per cent, 25. CHROMITE: Long ton, C.I.F.— Indian, 45-47 per cent, $16.75-17.00. Russian, 48-50 per cent, $19.00-195.0.