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: 1934
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Fulltext: 18 THE AMERICAN CHAMBER OF COMMERCE JOURNAL October, 1934 tions obtaining in that country. It has been reported that great progress is being made of private building and construction works in that country, which are supplemented by the public building program of the South African Govern ment. A slight slackening of the trade with Great Britain was, however, noted during the month under review, but this may be accounted merely to seasonal dullness. In contrast with the comparatively active lumber and timber transactions for foreign mar kets, the local markets remained dull due to slackening of construction activities as a result of the rainy season. Prices are still low but firm and the feeling is that a reaction towards higher price levels is not very far off. Mill production increased 11% as compared with July of last year while the deliveries did not register any increase. As a natural result there for, there were heavier stocks on hand at the end of the month under review than at the end of the same month last year. The following statements show the lumber and timber exports, by countries, and the mill production and lumber inventories for the month of July, 1934, as compared with the corresponding month of the previous year. Lumber and Timber Exports for the month of July 1934 Destination Board Feet CustomsDeclared Value Japan...................... *5,258,024 I* 97,931 United States........ 1,764,688 134,439 Australia.................. 769,136 30,185 China. ...... 690,696 34,527 British Africa.......... 324,784 23,298 Great Britain.......... 268,816 20,476 Portuguese Africa... 234,472 14,610 Netherlands............. 140,768 1,963 Denmark.................. 25,016 2,738 Hongkong................. 16,536 694 Italy......................... 848 59 Hawaii..................... Guam...................... Total............... 9,493,784 P 360,920 1933 Destination Board Feet CustomsDeclared Value Japan........................ 5,033,456 P 77,940 United States.......... 1,384,360 77,640 Australia................... 22,473 1,124 China........................ 1,488,664 15,353 British Africa.......... 303,160 21,161 Great Britain.......... 362,096 20,782 Portuguese Africa... 43,248 3,386 Netherlands.............. Denmark.................. Hongkong................. Italy......................... Hawaii...................... 8,480 1,282 Guam....................... 2,120 365 Total................. 8,647,056 P 219,033 Note:—*This represents mostly solid log scale, that is 424 board feet to a cubic meter. For JJ) Mills for the month of July Lumber Deliveries from Month __________ Mills_________ _____________________ 1934________1933 July........................... 14,480,857 14,752,135 Month 1934 1933 July........................... 28,951,859 23,428,675 Mill Production Month ----------------------------------_____________________ 1934________1933 July........................... 16,382,570 14,689,646 Note:—Board feet should be used. COPRA AND ITS PRODUCTS By Kenneth B. Day and Leo Schnurmacher In September price advances in copra and coconut oil which started in August were con tinued. All American oils, fats and foodstuffs advanced sharply during the month which made copra and coconut oil more attractive to Amer ican buyers. The fact that many copra ex porters had sold short earlier in the season made it impossible for buyers to obtain their require ments except at constantly increasing prices, and this fact was largely responsible for the upturn. Copra : September arrivals were far more satisfactory than those of August. In Cebu receipts were almost the same as those for Sep tember, 1933 and in Manila the decline was only approximately twenty per cent. If direct ship ment from outports is included, undoubtedly the combined Island receipts would exceed those of 1933. The month records a steady price increase, ranging from P4.40 per hundred kilos Resecada at the first of the month to a maximum of P6.10 at the end of the month. The buying interest was largely represented by the Pacific mills for copra and the local mills who were buying for oil purposes. European buyers were not interested at competitive levels and although some business was done through charters 6ut of Cebu, it was. decidedly an American month. Prices on the Coast rose from 1.35 cents to 1.72-1/2 cents c.i.f. while the European market advanced from £6/15/0 to £8 0 0 with slightly higher prices occasionally available for fancy parcels. Toward the end of the month it was evident that the market had advanced too rapidly and was due for a reaction, and the first of October found sellers much more anxious to do business and buyers gradually reducing their ideas. The statistics for the month follow: Arrivals— Bags Manila............................................... 413.469 Cebu................................................... 357,182 Shipments— Tons Pacific Coast and Mexico.............. 13,400 Atlantic Coast.................................. 961 Gulf Ports......................................... 2,575 Europe............................................... 24,952 China and Japan.............................. 926 Total....................................... 42,814 Stocks on Hand in Manila— Beginning of Month....................... 28,958 End of Month................................. 31,734 It was the general feeling that large stocks of copra had been accumulated in the provinces and that any price weakening would reflect itself at central shipping points. Coconut Oil: The coconut oil market improved gradually throughout the month. Commencing at 2-1 2 cents c.i.f. New York, the market advanced to 3-1 8 cents and it was reported that a few small parcels were sold as high as 3-1/4 cents. The demand was fairly narrow, however, and most of the buyers were small consumers for edible purposes, the large soapers on the whole holding back. Any large offerings would undoubtedly have broken the market, but sellers were afraid to offer because of the uncertainty of the copra situation. Pacific Coast demand was very fair and buyers were interested for once more in prompt than in future shipments. European buyers were not a factor. Local prices ranged from 9-1/4 cents up to 11-1/2 cents per kilo. Statistics for the month follow: Shipments— Tons Pacific Coast................................... 996 Atlantic Coast.................................. 3,050 Gulf Ports......................................... 1,730 Europe............................................... 610 China................................................. 66 Tbtal....................................... 6,452 Stocks on Hand in Manila and Cebu— Beginning of Month....................... 11,736 End of Month................................. 16,143 Copra Cake and Meal: Interest in meal shipments from the Philippines continued on the Pacific Coast and prices remained firm through out the month at from S22.50 to $23.50 per short ton c.i.f.—October to December snipment. Toward the end of the month it was evident that prices had reached their peak and that importa tions of other foreign foodstuffs, plus a netter local situation, would likely tend to ease off the market in October. Hamburg buyers of copra cake increased their quotations to a certain extent but were still anywhere up to P3.00 or P4.00 below meal equivalents. There were no sales of copra cake to Europe during the month that we know of. The following statistics cover these products: Shipments— Tons Pacific Coast..................................... 2,528 Atlantic Coast.................................. 274 Europe............................................... 4,866 China................................................. 51 Total....................................... 7,719 She.—So you came home and found your wife in the arms of your best friend—who is he? He.—I don’t know—I never saw him before in my life! —Cut and comment from Judge. GORDON DRY The heart T XT ° g°°d vrliXI cocktail SPECIAL MCNISH’S Scotch Whisky for Good Highballs Kuenzle & Streiff SOLE AGENTS Main Office: Branch Office: 343 T. Pinpin 44-48 Isaac Peral Tel. 2-39-36 Tel. 2-17-62 Branches: Cebu, Iloilo and Zamboanga Also distributors for Alhambra Cigars IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JO URNAL October, 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 19 Stocks on Hand in Manila and Cebu— Beginning of Month....................... 5,805 End of Month................................. 5,187 The comparatively large shipments to Europe were all in fulfillment of contracts made earlier at much lower prices. Desiccated Coconut: During the month of September desiccated factories were operating at good capacity. The improvement in the copra market meant a higher cost for nuts to desiccated plants which was not fully compensat ed by price increases for desiccated coconut in the United States. It was reported that a new desiccated plant would be in operation at Calamba before the end of the year. Shipments for the month were rather better than normal, totaling 2,168 metric tons. General: The stimulation of copra prices in September was a great fillip to the producers. At September levels copra was again a profitable crop and the harvesting of nuts and making of them into copra came back to normal for the first time in several months. This will un doubtedly affect crop estimates for the balance of the year. Local mills were able to buy con siderable copra, thus improving their productive position. At the end of the month it was felt that mills both here and in the United States were in an easier position and that a price reac tion was almost bound to set in. It was not felt, however, that this reaction would be very severe and the consensus of opinion was that November and December markets would still offer reason able prices unless the production of copra far outstrips all present estimates. Reports from the United States continue to prove that although prces are comparatively high, an absence of the excise tax would have made them still higher, and nothing has as yet been advanced to disprove the theory that in the long run under present conditions the Philippine copra market will be the cheapest copra market in the world, unless through some act of God production is very severely curtailed which seems most unlikely. | Objects to Wheat A reader in Albay writes as follows: “In a recent Daily Bulletin it was reported that Mr. Eulogio Rodriguez has a scheme for sowing wheat on an enormous area, government subsidized. To my mind this means but a great waste of public money; unless it has been proved by experiment over considerable areas and a period of 4 years, it is farce to squander labor on productive soil. “Many years ago an agriculturist, since dead, sowed Spanish seed wheat on two acres of land in the Batanes islands. His first crop was excellent. His second harvest from seed of the first crop was poor, and the third crop from se cond year seed was not worth harvesting. He told me that fresh seed from the United States or some other wheat growing country was essential for each sowing. Native grown wheat degen erates, just as. tomatoes degenerate. I think that in England wheat rotates with potatoes every third year, as without rotation or fallow ing the soil is soon exhausted. “Please agitate for full inquiry, and results of past experiments, before such a rash scheme is adopted.’’ In our view, our reader’s concise comment is sufficient agitation of this question. It raises all doubts which should be definitely laid before planting beyond the experimental scale should be undertaken.—Ed. INSURANCE For Every Need and Purpose FIRE WORKMEN’S COMPENSATION AUTOMOBILE MARINE ACCIDENT BAGGAGE PLATE GLASS Atlas Assurance Co., Ltd. The Employers' Liability Continental Insurance Co. Assurance Corporation Ltd. Orient Insurance Company General Agent E. E. ELSER, INC. Telephone 2-24-28 • • Kneedler Building THE YOKOHAMA SPECIE BANK — ... .-■■■■—= LTD. .............................= (ESTABLISHED 1880) HEAD OFFICE: YOKOHAMA, JAPAN Yen Capital {Paid Up) - - - - 100,000,000.00 Reserve Fund - 124,250,000.00 Undivided Profits - . - - 8,256,944.77 MANILA BRANCH 34 PLAZA CERVANTES, MANILA S. DAZAI Manager Telephone 23759—Manager Telephone 23755—Account 4 Cashier Telephone 23758—Export 4 Import Dept. Telephone 23768—Deposit 4 Remittance Dept. D R Y s E A L S Superior Quality Dependable Service RING UP 2-18-C1 the next time you need a Rubber Stamp or Dry Seal and our Salesman will call fljrc^TTT r ryujCi / ■/> PRINTING COMPANY >--V IF-f. uuLi^vyu vjtJl 1 Sales Office: 2nd Floor 101 Escolfa R u B B E R s T A M P S IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL