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: 1936
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Fulltext: 34 THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1936 COPRA AND ITS PRODUCTS By KENNETH B. DAY and LEO SCHNURMACHER Kenneth B. Day Leo Schnurmacher l-'chruarv showed a continuance of the un certainty in tin* copra and oil markets which has been the feature for the past six months. Once more the market fluctuated wildly and once more speculative buying and selling controlled the situation to a large degree. European buyers, instead of following American prices, as they did a year ago, are sitting the pace themselves this year, which makes local buying for export as oil or copra to the United States an up-hill job temporarily at least. Copra.- The copra market for February was very largely controlled by European export prices. These prices were consistently above what the mills could afford to pay for oil sales to the United States and what the copra cxporters could afford to pay for shipments of copra to the United States. Sometimes this differential was as high as 1*1.00 per hundred kilos, but at no time was it less than 25 centavos per hundred kilos. On this basis a great deal of copra was sold for export to Europe at prices ranging from £14, 10 0 down to .£13/5/0 for sundried with smoke dried 10 to 15 shillings lower, and very little copra wras sold for export to the United States where prices ranged from 2.75 cents to 2.50 cents per pound. Mills bought as freely as they could and paid maximum prices, many times buying at a loss. Even so, their purchases were not very heavy and left them with rather slender stocks to face the lean months of copra production immediately before them. Copra prices in Manila started the month at P9.75 with the market weak. The price gradual ly declined to P9.00 with the buyers indicating a further decline to 1*8.50. Sellers, being well supplied with contracts and noticing the strong export markets, refused to sell at these lower figures and the market firmed up again to as high as 1*9.50 by about the 20th of the month. INSURANCE 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 E. E. I I Ml. INC. Telephone 2-24-28 — MANILA — Kneedler Building Thereafter another decline set in as the European market weakened and at the end of the month buyers were down again to P8.75 with large sellers not interested, but with a weaker ten dency in evidence. It is reported that the European demand for copra is caused by the ability of Europe to buy copra at a cheap price without any excise tax and supply the United States with other oils and fats which, due to the excise tax, are well protected, and consequently command higher prices. There is good profit in this for the European traders. Arrivals for the month were very good, being the best on record for several years for February both in Manila and Cebu. Shipments also were heavy, particularly to Europe, both buyers and sellers evidently desiring prompt shipment. Statistics for the month follow: Arrivals— Sacks Manila................... 348,087 Cebu.................................................. 336,523 Shipments— T ons Pacific Coast.................................... 11,571 FIRE MARINE ACCIDENT PLATE GLASS Atlantic Coast................... 3,302 Gulf ports............................... 1,270 Europe............................................... 17,037 Egypt ............................. 297 33,477 Stocks on hand in Manila— Tons Beginning of the month................. 35,017 End of month................................... 31,135 Stocks on hand in Cebu— Beginning of the month................. 25,192 End of month................................... 15,255 Coconut Oil: The coconut oil market in the United States was very dull in February. Edible buyers were inactive and soap buyers could not see their way clear to pay above 4-1/4 cents c.i.f. New York, which was fully 1/4 cent below sellers’ ideas. About the 10th of the month a small edible demand came into the market on both Coasts and it was possible at one time to sell oil in San Francisco at 4-1/4 cents and in New York at 4-3/8 cents with a small amount of business done at 4-1/2 cents. This involved a rather slender amount of trade, and by the end of the month prices were easier all around with large industrial buyers still willing to pay 4-1/4 cents c.i.f. New York, but with sellers holding out for 4-3/8 cents in New York and 4-1/8 cents in San Francisco. The local market for drum oil fluctuated from 17-1. 2 cents to 19-1/2 cents per kilo in line with copra values. Statistics for the month follow: Shipments— Tons Pacific Coast..................................... 2,876 Atlantic Coast.................................. 6,689 Gulf Ports......................................... 1,002 China.................................... '.......... 9 10,576 Stocks on Hand in Manila and Cebu— Tons Beginning of the month................. 21,503 End of month................................... 25,925 Coppa Cake and Meal: The absence of consumer demand at the beginning of the month, and accumulating stocks at this end, induced crushers to dispose of large parcels of their holdings at the low offers available from specu lators in Europe, and transactions were recorded for shipment as far ahead as June. During the first hal f of the month, practically only April/ May June shipments were in demand, while crushers were anxious to sell March shipment due to the fact that they were overstocked. Later in the month, owing to the low prices reached, it was again possible to stir up some consumer demand, and a fair volume of March and March April contracts was negotiated. Toward the end of the month, crushers had disposed of excess stocks and were no longer interested in low offers; the market closed with a firmer undertone and prospects of a steady market during March. Hamburg prices dropped to as low as 821.50 per ton c.i.f. equivalent to about 1*23.00 f.o.b. The Pacific meal market was more active during February, but at declin ing prices. Sales were made at prices ranging from 818.00 to 816.25 per short ton c.i.f. for prompt and summer positions. The following statistics cover these products: Shipments— Toris Pacific Coast......................................... 4,616 Europe................................................... 4,471 9,087 (l'lcasc turn to page .(S') IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1936 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 43 REAL ESTATE By P. D. CARMAN Addition Hills The following are tlie totals for the first two months of each of the last live years: 1932 . .. Pl,251,-152 1933.. . 1,692,048 1934.. . 2,531,342 1935.. . 2,276,947 1936.. . 2,352,312 ■S«?cs City of .Manila Sta. Cruz........ Sampaloc........ Tondo............. Binondo.......... San Nicolas. . Ermita............ Malate............ Paco................ Sta. Ana.......... Quiapo............ San Miguel. . . Intramuros.. . . Pandacan........ Sta. Mesa....... San Felipe Neri 1* 285,463 P 645,571 82,268 18,000 14,188 103,050 94.814 39,140 33.814 19,238 239,288 63,261 81,084 189,402 48,700 21,000 67,869 19,048 88,035 128,619 ---- 32,100 1,130 1,900 34,700 630 1’1,338,076 1’1,014,236 Copra (('nnt in lied from page 34) Stocks on hand in Manila and Cebu— Tons Beginning of Month....................... 9,439 End of Month................................. 8,881 Desiccated Coconvt: The desiccated market was featureless during the month. Pri ces in New York continued pegged at 7-3 4 cents while shipments were slightly smaller than in January. Factories found coconuts rather scarce and high priced. The entrance of new small mills into the business which commenced last year continued but small dealers so far have not shown any disposition to under-cut prices to find a market for their products. Shipments for the month total 2155 tons. CiEXI-kai.: As usual future prospects for coconut products are most uncertain. Many things can happen which will cither improve or harm our prospects. Buyers are adopting a hand to mouth policy with regards to coconut oil, while' buying far more freely other fats and oils not so subject to adverse legislation. There is considerable sentiment in Washington toward modifying the excise tax, but it is extremely unlikely that anything constructive will be done, particularly unless the Philippine Government takes a definite stand favoring constructive legislation along these lines. Prospects for the coming few months indicate iafiuctuating market.with a long range probab ility that the second half year with large* offerings of copra available may prove disappointing to producers in comparison with 1935, although substantially better than two years ago. All this, however,is largely a matter of speculation. Hargis and Godbe (Continued from vage 17) with an assay value of 0 44 oz. at 161 feet from the portal and at 210 feet encountereel the* main vein. The vein at this point is 4 feet in width with an average* assay of 2.02 oz. or 870 per ton. Drifting S. E. at this point shows the vein tei have; a bearing of N. 32 degree W with a moie northerly bearing than the general bearing e>f N. 60 degree* W. A connection with the* west elrift of tunnel 1 is about to be made which will insure: geiexl ventilation and facilitate* the* weak in this section. “Tunnel 2 at the* extreme* northwest end of the* rielge* has proven that Tunnel 2 has not been drivein far enough north to have* cncountercel the* main vein, and a distance* e>f not more than 50 fee*t should encounter the* main vein. At the* prevent time, the elrift being driven east is in a well defined vein and the* assay values are now running between 1’7 and 88. As this vein approaches the* main vein the: values have: shown a steady increase*. This work is starting imme diately and within 10 days should prove; the* location e>f the* vein at this point. “The* main Tunnel at the* 200 level is now in a distance; e>f 365 feet.” Hoover and Coconut Oil (Continued from page 33) re*minde*el Chester Davis, quondam administrator of AAA, that the act existeel, Roeisevclt revamp eel his farm policy without delay. What the supreme* court deprived him of in invalidating the* AAA, he seems te> have in this act in much more* substantial form; anel Time says the act is brief, covering but a single* page*. This being spring, and an ejection year in America, the act will be* heard from this summer. It will prob ably influence the* planting of hundreds oi' thousands of acres; more particularly in the* south, where* superabundant ce>tton togetheiwith new cotton-picking machines disemploy colored labor that it would hardly be well te> have* fleiat northward, will intensive* diversifica tion be* an aim of administration. THE BUILDER'S TEST IS ALWAYS BEST "Builders Choice” RIZAL CEMENT Superior Lower Cost "■II I , HAI I K AI & €C. MANILA P. O. Box 254 — Tel. 2-19-62 INVEST THE PRODUCT OF YOUR SAVINGS IN THE “El AHORRO INSULAR" WE PAY...!!! 7°/o (Seven Per Cent ANNUALLY) For Our PAID-UP-SHARES We Also Have SHARES FOR SAVINGS (CUMULATIVE) With Different Procedure of Savings, From FIFTEEN CENTAVOS Ask information from the MANAGEMENT EL AHORRO INSULAR | Phone 2-16-02 P. O. Box 1219 I 311 Samanillo Bldg., Escolta, Manila, P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL