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
Rights
Fulltext: 24 THE AMERICAN CHAMBER OF COMMERCE JOURNAL June. 1934 The annual Honruf exndua reached ita height during the month ofApril, bookings in all direc tions reaching new hi^h leveh. particular interest is the increase in tourist travel from the I’hilippincs to China and Japan, one group alone numbering over sixty persons. The following figures show the number of passengrrs dejmrting from the Philippine Islands during April, 1934: InUr- TK.rd Fir * S'iaai 279 499 276 1 2 43 135 69 215 20 6 0 17 7 0 19 51 0 9 9 0 6 4 0 5 0 0 China and Japan Honolulu. Pacific Coaat Europe via America. Htraits HettlemenU and Dutch East Indies........... Europe and Mediterranean Ports beyond Colomlio America via Sues. . Australia. Round-t he-World Total for April............. Total for March........... 499 644 534 294 518 3 33 COPRA AND ITS PRODUCTS By Kennkth B. Day AND LKO SCHNURMACHER The local copra market showed mixed trends during May owing to the general uncertainty linked with the situation created by the final approval of the coconut oil excise tax in the United State * . Although some action on the part of the administration was expected, allowng a total or partial exemption from this tax for the Philippine Islands, no such action was taken and under the circumstances local crushers have not been keen buyers at all due to their inability of selling coconut oil in the United States. The month, therefore, was largely controlled by export demand tempered with the unusually severe seasonal curtailment of arrivals Comla: Both in Manila and Cebu arrivals were far below the corresponding month of 1933 In addition to the seasonal decline in production, unusually heavy rains throughout the latter part of the month caused a decrease of 50% as compared with May last. It is expected, how ever, that the next few months will again bnng normal copra receipts, pnees permitting. Pur chases by local mills were transacted on a small scale only and with particular caution. Pnees ranged from F3.50 to P3.60 per hundred kilo * Rerecada, and very little contract business was transacted. Export markets started dull, but in the second week of the month a decided Eu ropean buying interest made its appearance and a large volume was transacted at prices ranging up to £7/5. This business was particularly attractive because of the sluggishness of the American copra market, which was dull with 1.20 cents the highest price quoted in Manila and 1.25 cents in Cebu. One round lot of copra was sold to Mexico st better than there figures. Throughout the month large copra dealers were unwilling to commit themselves to forward contracts. The following statistics apply:— Arrivals—Manila, 178,246 bags an d Cebu, 253,227 bags. Shipments— Tons Pacific Coast 4,525 Mexico.................. 5,367 Atlantic Coast . 762 Gulf Ports 3,556 Europe . 12,635 China and Japan 1,617 Total 28,462 Stocks on Hand in Manila— Tons Beginning of Month 52,028 End of Month 43,573 In addition to the above very fair stocks of copra were held in Cebu and other provincial porta. Coconut Oil: During tne entire month there was no interest whatsoever on the part of big buyers al oil in the United States Nominal quotations were 2-1 4 cents r i f New York and 2 00 cents fob Pacific ( oast At the end of the month local mills were offering pamrb at 2-1 4 cents but with no bumnessi transpiring. A few small tank ears were sold on each coast but large buvers were holding hack awaiting the final outcome of the excise lax, which they could easily do on account of ample stocks The local price of coconut ml dropped from > * -l 2 cents to as low as X00 cents ex factory 8tat is tire for the month follow — Shipments— Tons Pacific Coast 995 Atlantic Coast . V<50 Gulf Ports 5,004 China 50 Total 14.91 * Stocks on Hand in Manila and Cebu - Tons Beginning of Month 16,449 End of Month 15,902 Copra Care : A very fair volume of cake sras sold during the month. Sellers here hecame tired of bolding stocks for better pnees and began to sell early position. Later on the European market picked up due to droughts in the United States and Europe and the fear on the part of buyers that a future curtailment of eoconut ml shipments might mean a scarcity of supply of copra cake. Hamburg pnees improved from $17.00 to as high as $18.00 and the local equi valents from P1300 ex warehouse to P13.5O. At the end of the month prospects for additional improvement were in evidence. Very little meal business was done to the United States. The following statistics cover these products — Shipments— Tons Pacific Coast 1.909 Atlantic Coast . 192 Europe 3,140 Total 5,230 680m“s THE EDWARD J. NELL CO. P. O. Box 1640 TEL. 2-29-75 CRANE EXPORT CORPORATION Valves for Every Purpose GARLOCK PACK ING COMPANY Packing for Every Service WYOMING RED EDGE Shovel & Picks YALE & TOWNE MFG. COMPANY Chain Blocks BRODERICK & BASCOM ROPE CO. Hoisting Rope for Every Purpose WORTHINGTON PUMP & MACHIN ERY CORP’N Diesel Engines, Compressors, Pumps WESTINGHOUSE ELECTRIC INTER NATIONAL CO. Motors, Generators, Welders MINE & SMELTER SUPPLY COMPANY Marcy Ball Mills, Wilfley Tables. Marcy Rod Mills, Wilfley Sand Pumps, Ore Milling Equipment. Assayers Supplies. Empire Prospecting Drills, Placer Machines OLIVER UNITED FILTERS CORP’N Continuous Vacuum Filters NORDBERG MA NUFACTURING COMPANY Symons Crushers HEWITT RUBBER CORPORATION Air Hose-Belting WASHINGTON IRON WORKS Mine Hoists Logging Engines IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OP COMMERCE JOURNAL June. 1934 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 25 Stock * on Hand in Manila and Cebu— Beginning of Month............................. 6,290 End of Month........................................ 10,860 Desiccated Cocomut: The desiccated market was good during May. Prices ranged al 7-1/2 cent * or better e i. f. New York and owing to seasonal rummer requirement * , demand was brisk. Toward the end of the month, however, the market commenced to ease off, with the likelihood of a lightly lower price * in the future. Local mill * were operating at fair capacity. Ship ment * for the month totalled 2,008 metric ton * . General: Anyone who would try to ac curately predict the future of copra and coconut oil today would be a very brave person. One thing ia certain—the excise tax is effective and will remain effective—at least until the next session of congreaa in 1935, and probably to a limited extent at least beyond then. It is generally felt that with the heavy copra months of the year coming on, the reduced demand for oooonut oil in the United State * will be unable to take care of the arrival * and will multi n considerable selling pressure at slightly lower prioe * than those pertaining today. The un expected strength shown in the European market reoently, however, may, if continued, absorb a good deal of Philippine copra and help maintain price * . More particularly will this be so if freight rates to Europe are reduced a * seems entirely possible. Producers cannot stand copra prices much lower than those pertaining. There fore, whatever drop there will be In the market will not be a very heavy one. On the other hand, prospect * for any improvement appear to be very remote and will depend largely on a world-wide rise in all staple commodities. LUMBER REVIEW By ARTHUR F. FISCHER Director o/ Forestry During February, there was steady demand of Philippine lumber and timber, partic ularly abroad. The total lumber and timber ex port * during the month under review was 6.596,592 board feet with customs-declared value of F292.021 as against 3,099,016 board feet with customs - declared value of F78.007 for the corresponding month last year, or an increase of 113%. Shipment * to Japan declined slightly as com pared with February of last year, there being only 2,516,864 boarti feet exported to that coun try during the month under review as against 2,523,648 board feet for the corresponding period in 1933. However, Japan still maintain ed it * place a * the largest consumer of Philippine timber. Demand in the United States conti nued active. There were 2,263,312 board feet shipped to this market during February, 1934, a * against only 106,632 board feet for the same month in 1933, or an fncreaae of 1258%. The above shipment for February la about the maximum amount that could be shipped each month to the United State * under the National Recovery Act, the lumber quota al lotted to the Philippines under the said Act being only twelve to fourteen million board feet for six months, beginning next June 1st. As may be seen from the comparative tablee below, the Philippine lumber trade with the other countries also registered considerable improvement. China's consumption of Philip pine lumber and timber during February in creased 3251% as compared with the corre sponding period last year. Great Britain 162%, Australia 121 ro ana Hawaii 55%. Lumber shipment * to Netherlands, Hongkong, Portu guese Africa, British Africa and Portuguese China during February under review aggregated 315,456 board fast white for the corresponding period in 1933 no lumber exportation to these countries were registered. Demands in new markets are, of course, particularly encouraging at this time when the limitation of lumber and timber exportations to the United States under the National Recovery Act is about to take effect. But it must he stated here that the exportation of lumber is especially handicapped by present freight rates, when the value of the pound sterling was low in terms of the United Slate * dollar, the freight rates to Europe and South Africa from the Philippines were so re duced as to offset the loss due to the unfavorable exchange. However, when the dollar depre ciated the rates were never readjusted so that at present the freight almost equals the price of the lumber in some esses At existing rates, it is cheaper to ship lumber to Europe via the Panama Canal than by way of the Sues, although the former route is longer. Mill production increased 62% a * compared with February of last year, but despite this increase lumber inventories practically remained the same, evidencing increased movement of stocks. Prices, however, showed practically no improvement from the previous month. The following statement * show the lumber and timber exports, by countries, and the mill production ana lumber inventories for the month of February, 1934, as compared with the corre sponding month of the previous year. Lumber and Timber Brporta Jar February 1934 Destination CustomsBoard Feet Declared Value United States..................... China.................................... Australia............................... Great Britain..................... Netherlands........................ Hongkong............................. Portuguese Africa............. British Africa.................... Hawaii.................................. Portuguese China............ Italy...................................... Total........................... •2,516^64 F 47,472 2,263,312 147,092 582,576 29,266 467,672 17,215 437,568 34,546 100,064 1,753 94,552 3,611 67,840 4,979 49,184 3,565 13,144 2,193 3,816 329 6,596,592 F292.021 1933 Destination CustomsBoard Feet Declared Value Japan.................................... United States.................... China.................................... Australia............................... Great Britain..................... Netherlands........................ Hongkong............................ Portuguese Africa............ British Africa.................... Hawaii.................................. Portuguese China............ Italy...................................... Total........................... 3,099,016 F 78,007 2,523,648 166,632 17,384 211,152 167,056 F 41,435 11,509 1,661 8,606 13,095 8,480 1,329 4,664 372 NOTE:—* This represent * mostly solid log mate, that is, 424 board feet to a cubic meter. Baaed an 40 MiVe Jar the Month oj February Lumber Deliveries from Month Mills 1934 1933 February......................... 15,137,531 9^43,974 Month Lumber Inventory 1934 1933 February......................... 25,272^293 25^07,257 Month Mill Production 1934 1933 February.................... 15,119,963 9.336J63 NOTE: Board fest should be used. TOBACCO REVIEW By F. A. Mktxr Alhambra Cigar anA Curette Hjg. Co. for bids calling for 8 mill inn kite* of FhQtpptae tobacco. Trading in local and export grades was quiet. Export during May was a* follows: was quiet. Export during May was a * follows: eairr * TUtmutSaf Australia.................................................... 1,270 China.......................................................... 154M6 Csechoalovakia........................................ 384 Germany.................................................... 27 Gibraltar................................................... 9,720 Hongkong................................................... 15,655 Japan.......................................................... 3,120 Java............................................................. 840 Manchukuo............................................... 30 North Africa............................................. 8^570 North Atlantic (Europe).................... 176,103 Strait* Settlements................................ 506 United Stales.......................................... 29,791 261,174 April............................................................ 1,088402 March.......................................................... 1H,621 Cigars: Comparative figures for shipment * to the United States are: May, 1934............................................... April, 1934............................................... March, 1934.......................................... 15,970,001 19,668,451 17,549,132 Why He Couldn't Pay A collecting agent in Manila received ths fol lowing: “Sir: “I acknowledge receipt of your tettm remind ing me of my account in Ute Pharmacia San Fernando, of the total amount of F16.94 plus interest. “Without any further contempt, 1 accepted the balance due a * an obligation to my part. I have the honor to inform that office that 1 be given ample time eoough to provide mo and to make a recovery upon my will and Hfe so as to overcome the great handiou) that creah me down with unlimited pressure of insufficiency during the past period. "However, 1 had long expected to resell erm a simple cash payment for that obligation and to settle the matter, even if your notfoe did not come for Inquiry. Incidentally 1 was almost tampered by mirfartune whenever 1 tried to ac complish my reUo because of ths presence gnevanoes as a rumor. And with nothing etoe tn listen for its fatal effect it to thsrWore an un avoidable estate, and my destitute family sa crifice that romance m ths atmosphere of drought. ” Tiers to a little more, but isn't it enough tn my, Aren t we all?