Sugar
Media
Part of The American Chamber of Commerce Journal
- Title
- Sugar
- Creator
- D'Authreau, J. H.
- Language
- English
- Source
- The American Chamber of Commerce Journal Volume XXX (No. 1) January 1954
- Year
- 1954
- Rights
-
- Fulltext
- January, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 25 90.3% 19,559 34,518 88.0% 17,258 33,771 65.2% 5,854 28,364 80.4% 17,266 35,696 115.4% 29,586 19,773 109.2% 26,140 17,316 76.4% 21,445 11,483 106.9% 29,409 20,350 118.1% 21,986 12,411 March............... April.................. . . . 50,168 . . . 48,745 55,549 55,405 May.................. 36,536 56,053 June.................. . . 48,144 59,876 July................... . . . 64,359 55,756 August.............. 71,010 65,052 September........ . . . 75,804 99,196 October............ . . . 83,610 78,201 November........ ... 73,511 62,262 Totals....... ... 631.584 749,284 81.7% 221,617 271,270 Production and Future Prospects. Estimates for 1954 production indicate an overall increase of about 10% to 15% over 1953. As for the short-term price-trend, some of the trade believe that the usual January price-advance will be contained this year by some of following bearish factors; the typhoon season is passed with no damage; commercial stocks of copra and coconut oil in the United States continue to increase and are now at the highest levels in over a year and a half; Indonesian sales and exports to Europe are expected to remain at a high level; the rela tively high price for coconut oil is meeting more and more resistance from the buyers. Desiccated Coconut By Howard R. Hick President and General Manager Peter Paul Philippine Corporation THIS report covers the period of November 15 to Dec ember 15, 1953. Following are the shipments for the month of November 1953. Shippers Pounds Franklin Baker Company............................................... 4,994,350 Blue Bar Coconut Company.......................................... 554,340 Peter Paul Philippine Corporation............................. 665,000 Red V Coconut Products, Inc....................................... 1,137,900 Sun Ripe Coconut Products, Inc............................... 718,000 Cooperative Coconut Products, Inc............................ 209,100 8,278,690 Sugar By J. H. d’Authrbau Acting Secretary-Treasurer Philippine Sugar Association THIS review covers the period December 1 to December 31, 1953. New York Market. Much that was unexpected has happened since we last reported. Heavy trade demands on refiners, prompted by fears of shortage should the water front issues remain unresolved, raised spot and December values to as high as 6.35/ as refiners replaced, until .the United States Government granted permission to refiners to melt excess quota sugar. Spot and December deliveries there upon declined gradually to 6.00/, duty-paid basis. Future positions maintained their values throughout. After the close of business on December 14, the U. S. Secretary of Agriculture announced a 1954 domestic quota of 8,000,000 tons with estimated needs set at 8,400,000. Trade circles took a bearish view of these figures, having in mind— (a) ability of all supplying areas to fill their quotas in 1954; (b) doubts of 1954 consumption reaching 8,400,000, i.e., 200,000 tons more than in 1953; (c) that due to waterfront strike-scares and desire of beet processors to market maximum quantities in 1953, invisibles at 31 December may well be considerably above normal; (d) possible intention of U.S. Department of Agriculture to bring price down in line with other United States crops and to discourage further United States sugar expansion. Against this thinking, the futures market did well to drop only 8 points in March and May, 6 in July and September, and 5 in November. The market remained quiet and inactive for a week, in contemplation gathering some underlying strength from reports of the .Cuban inten tions to restrict their 1954 crop to rather under 5,000,000 and not to begin grinding till January 16 (a week or so later than normal). Ratification in London of the International INSULAR LUMBER COMPANY FABRICA, OCC. NEGROS MEMBER — PHILIPPINE LUMBER PRODUCERS’ ASSOCIATION, INC. ---------- ¥----------SPECIALISTS IN KILN-DRIED LUMBER and MANUFACTURERS OF BOXES OF ALL DESCRIPTIONS MANILA DISTRIBUTORS: Philippine Lumber Manufacturing Norton & Harrison Company Company Insular Saw Mill, Inc. 814 Echague 14-30 Soler St. 340 Canonigo, Paco Manila Manila Manila MANILA OFFICE-. 603 FILIPINAS BUILDING 26 AMERICAN CHAMBER OF COMMERCE JOURNAL January, 1954 PACIFIC imtHMOI® CORPORATION 449 Daamarinas Manila AMERICAN RADIATOR & STANDARD SANITARY CORPORATION AMERICAN VALVE COMPANY AMES BALDWIN WYOMING COMPANY BADGER METER MANUFACTURING CO. BADGER FIRE EXTINGUISHER CO. BALL BROS. MASON JARS BOMMER SPRING HINGE COMPANY CAPEWELL MANUFACTURING CO. CARBORUNDUM COMPANY COLUMBUS COATED PRODUCTS CO. COLUMBIAN VICE & MFG. CO. COLEBROOKDALE IRON COMPANY CORBIN LOCK COMPANY DICK BROTHERS MANUFACTURING CO. EKCO PRODUCTS CO. FAIRBURY WINDMILL CO. GREAT NECK SAW CO. JACOBS MANUFACTURING CO. KEENEY MANUFACTURING COMPANY MALLEABLE IRON FITTINGS CO. NORTH WAYNE TOOL COMPANY PABCO PRODUCTS, INC. “Pabco” Products RUDISILL FOUNDRY COMPANY SLOAN VALVE COMPANY SOLARINE COMPANY TEMPLETON KENLY JACK CO. UNION CARBIDE & CARBON CORP. National Carbon Division “Eveready” flashlights & batteries Linde Air Products Division “Union” Carbide UNITED STATES STEEL EXPORT CORP. ♦ STEEL PRODUCTS HOUSE FURNISHINGS GENERAL HARDWARE PLUMBING Sugar Agreement, together with the Council’s decision to reduce world quotas 10-15%, also assisted. Delayed Cuban milling, plus deliveries against the United Kingdom con tract, will improve Cuba’s initial stock position and storage situation by some 600,000 tons. While the trade was still pondering these matters, the U. S. Department of Labor ordered an election to determine which union will represent the longshoremen. Whichever union is chosen will prob ably negotiate the issues at stake, and the strike-threat consequently receded. This immediately sharpened refiners’ appetite for January arrivals. Considerable volume of business in prompt Cubas and afloat Philippines developed, values rising to 6.10/ duty-paid basis. February and March arrival-values advanced slightly in sympathy under operator support, business developing in February and March Phil ippines at 6.04/ and 6.00/, respectively, with moderate offerings in both these positions at 6.0'5/ as we write. At the close, the market is a precariously balanced affair with January and February arrivals still in demand but March arrival-values (corresponding to January ./February ship ment for Philippines) as yet undecided. There have been no price changes in refined during the month under review. Reported sales of actuals totalled approximately 73,130 long tons, of which approximately 29,000 tons were Philippines. Exchange operations for the period approxi mated 211,350 tons. Deliveries of refined for the period November 22 to December 26 totalled 764,281 tons as compared with 554,522 for November, 1953, and 521,268 for December, 1952. Distribution for the year to December 26 was 8,281,469 short tons (raw value), against 7,999,993 tons for the same period last year, indicating approximately 8,300,000 for the year. On Dec ember 26 refiners stocks were at 166,491 long tons as com pared with 124,688 for the same date last year. Opening and closing quotations on the No. 6 Contract were as follows: January March May July September Nov ember December 1... 5.45(5 5.47^ 5.53(5 5.65^ 5.71^ 5.72^ December 30.. . — 5.52 5.56 5.69 5.75 5.75 Average spot price for December was 5.55/. Average spot price January 1 to December 31 was 5.79/. Local Market, (a) Domestic Sugar. Under the impact of full-scale milling, with ample supplies imme diately available, the market has declined in general despite isolated transactions for certain sugars at premium prices against export switches. Demand is sluggish and prices perhaps may yet go lower. Philippine Bureau of Commerce quotations during the month, basis “ex warehouse Manila” were as 1Follows: 97° 98° 99° December 2.. P15.70/15.80 — — December 9.. 14.50/14.60 P16.50/16.60 P18.50/18.60 December 16. . 14.50/14.60 16.50/16.60 18.50/18.60 December 23. . 14.10/14.20 16.20/16.30 18.30/18.40 In Bacolod mill run domestic sugar is quoted P14.20 per picul, ex mill warehouse. (b) Export Sugar. December has been quite active, first at 1’14.85 per picul ex Hawaiian-Philippine ware house, against sales in New York for December/January shipment at 5.95/, reflecting an easy shipping space situa tion and later at P15.00 against sales at 6.00/ in the same position. We estimate that approximately 40,000 tons have changed hands at these prices. As we write, P15.05/10 is being offered for prompt delivery by some exporting houses, doubtless on the basis of current offerings in New York for January /February shipment, at 6.05/. There has also been a very considerable movement of Central-owned export sugar in response to the easier freight market and the not unfavorable prices in New York for the time of year. Total export shipments for the month are estimated at 85,000 long tons, making a total of 98,783 long tons January, 1954 AMERICAN CHAMBER OF COMMERCE JOURNAL 27 against the 1953-54 crop and a total of 751,522 long tons for the period January 1 to December 31. New York reports show Philippine arrivals for the period January 1 to December 19 of 782,835 long tons as against 727,479 long tons for the same period in 1952. World Market. were as follows: Spot December 1.. 3.15,5 December 30.. 3.25 Opening and closing quotations Jan. Mar. 3.30,5 3.15,5 4.00 3.22 May July 3.19,5 3.20,5 3.25 3.25 Sept. 3.22 * 5 3.25 The improvement in this contract has continued and is now to some extent consolidated by the ratification of the International Sugar Agreement at the meeting this month in London of the International Sugar Council. Chief business after ratification was the election of the following Executive Committee to implement the agree ment: Japan West Germany The Republic of China The Netherlands Cuba Russia, and The Dominican Republic The United States As Japan has accepted membership in this committee, we are left wondering as to the final intention of Indonesia. This committee subsequently voted a 15% reduction of all world quotas above 50,000 tons and 10% of those under in order to adjust allocations to estimated requirements. The Philippines world quota is therefore reduced from 25,000 metric tons to 21,500 metric tons. 1953-54 Milling. Eighteen Centrals are now operating and latest reports received by the Philippine Sugar As sociation indicate that the total production of these 18 mills to December 13 is 241,239 short tons. The average of juice purities to date is 84.40. Manila Visitor. A distinguished visitor to Manila this month was Dr. Henry B. Hass, President of Sugar Research Foundation, Inc., of New York. At a luncheon party given in his honor by the Philippine Sugar Association he addressed representative members of the local sugar industry, describing the technical research work carried out under his direction aimed at increasing the uses and consumption of raw and refined sugars. Manila Hemp By J. Deane Conrad President, Conrad & Co., Inc. THIS covers the period from November 22nd through to the end of the year. Prices in the United States market for machine-stripped medium grades of Davao fiber have gone down approximately 1/2/ a lb. with the exception of grade G. Demand for this particular grade has continued and the price for it has been maintained in the New York market. Prices of higher grades of ma chine-cleaned hemp, namely E and F, have fallen off con siderably. The New York market has been dull and buyers have shown little disposition to operate except for grades in short supply. In London prices have declined in sympathy with the New York market but there has been more activity from this quarter. United Kingdom and Continental buyers have been purchasing fairly steadily, and except for the year-end holidays they have purchased and paid slightly better than New York. The Japanese market has purchased in small quantities for the entire past five weeks. Prices for machine-cleaned medium grades of Davao’hemp have declined approximately $2.50 per bale during the period under review, with the exception of machine-cleaned G which has been in good demand. The Japanese Trade Agreement with the Philip pines expires at the end of January, but we feel that this will be extended for a further three or four months as has heretofore been the case. There has been very little change in prices in the Philippines during the period under review. B. F. Goodrich SILVERTOWN Wide, road-level tread wears slowly. Strong, rubber-sealed cords absorb road shock, lengthen tire life. Low-pressure construction cushions your ride for comfort. B. F. Goodrich Silvertowns cost you less per mile. Remember—B. F. Goodrich, First in Rubber —makes the tires that are best in the long run. Watch for the friendly Goodrich sign— MORE THAN 200 DEALERS THROUGHOUT THE PHILIPPINES