Manila Hemp

Media

Part of The American Chamber of Commerce Journal

Title: Manila Hemp
Creator: Guettinger, Fred
Language: English
Year: 1950
Rights
Fulltext: The shipping statistics for the month of December are as follows: Shippers Pounds Franklin Baker Co. of the Philippines. . . 3,296,500 Blue Bar Coconut Company........................ 1,232,050 Peter Paul Philippine Corp.......................... 2,323,700 Red V Coconut Products, Ltd.................... 2,400,400 Sun-Ripe Coconut Products................................. — Standard Coconut Corporation.................. 72,400 Cooperative Coconut Products, Inc.......... 215,700 Tabacalera.................................................................. — Coconut Products (Phil.) Inc.................... 272,070 Luzon Desiccated Coconut Corp................ 241,500 Universal Trading Co..................................... ...................... Total..................................................... 10,054.320 Note: Peter Paul Production................................. 1,812,800 lbs. Standard Coconut Production.............................................. . 510,900 ” Total Peter Paul Shipments........................................ 2,323,700 lbs. Sugar By G. G. Gordon Secre tary-Treasurer Philippine Sugar Association THIS review covers the period from December 30 to January 30. New York Market: The year closed with buyers and sellers adjusting their ideas of values in accord ance with the 1950 quota of 7,500,000 tons. Business was done at 5.75 i and 5.70 i for sugar arriving in January but refiners showed no interest in buying for future delivery and a parcel of 2,000 tons Philippines, for March'April shipment, was offered at 5.650 without any interest being displayed. On January 3 the spot price was reduced to 5.680, at which price there were sales of Cubas and Hawaiians for January delivery. On January 4 the Exchange spot quota tion was reduced by 3 points to 5.15 0, which is equivalent to 5.65 0. Advices indicated that the trade generally felt that some decline in the price of refined could be expected. 2,000 tons Philippines due on February 5 were sold at 5.65 0. During the first week of the month, refiners continued their cautious buying policy and confined their interest to sugars arriving in January and early February. Sales were reported of Cubas, Perus, Hawaiians, and Philippines, all for prompt arrival, at 5.680 and 5.65 0. After this sellers withdrew from the market and a steadier tone was mani fested. The slight improvement in the market was attri buted to several factors, in particular the strong world quota market and the expectation that Cuba and Puerto Rico would be somewhat slow in starting their crop opera tions. On January 10 sales of Cubas were reported on the basis of 5.740 and 5.75^, but buyers were reluctant to follow the advance. On the same day Sucrest Corporation, which had been selling refined at 7.930, advanced their price to 7.980. Cuban harvesting got under way in the first week of January and on January 11, 12 mills were reported to be in operation as compared with 17 at the close of business on the corresponding date last year. On January 12, the market was steady with buyers at 5.75 0 for sugar arriving in the middle of February. Philippines for March/April shipment were also taken at the same price by operators. Offerings continued to be on a modest scale with sellers advancing their ideas for early delivery to 5.800. The following week, the market continued quiet with sellers’ ideas about 5.800 but no interest being shown on the part of refiners for anything with an arrival date be yond the end of February. The market continued during the remainder of the month with a tug-of-war going on between buyers and sellers of raw sugar. Refiners were not inclined to go over 5.750 for suitable positions, while sellers were asking 5.800. Refiners were reported not to be anxious buyers with the peak of raw-sugar production coming along soon, and the demand for refined sugar con tinued to be limited. However, sellers remained firm in their ideas and the month closed with the market reported as being firm, small sales at 5.800 being reported on Jan uary 24 for first half of February shipment. Buyers con tinued to show no interest in advanced positions. We give below the quotations on the New York Sugar Exchange as of January 25 for Contracts Nos. 4, 5, and 6: Contract No. 4 Contrac No. 5 t Contract No. 6 March................................... .................. 4.76 5.29 5.22 May....................................... .................. 4.73 5.32 5.24 July........................................ .................. 4.69 5.34 5.27 September................................................ 4.65 5.36 5.29 November.......................... 5.30 January............................... .................... 4.50 — — Local Market'. (a) Domestic Sugar. — At the end of December, the market quotations for centrifugal sugar, 97° polarization, were reported at Pl 5.50 to P16. For washed, polarizing 99°, Pl8 to P18.50 per picul was quoted. These prices remained fairly constant throughout the month, and at the close of the month the market was at about the same level as at the close of December. (b) Export Sugar. — During the period under review, the price of export sugar remained steady with an upward tendency in line with New York, and the month closed with prices of P13.90 to P14 being paid for export sugar, representing an advance of P0.20 to P0.30 over the prices a month ago. The production of the current crop is now in full swing and results to date indicate that the estimate of the crop will have to be revised downwards, probably somewhat below 800,000 short tons. Manila Hemp By Fred Guettinger Macleod and Company of Philippines DURING the period under review, December 16 to January 15, the New York market ruled quiet with little business done. Prices registered a further de cline and the market closed with buyers showing a ten dency to hold off in anticipation of lower prices. New York quotations: Per Ib.c. i. f. New York 12-15-49 1-15-50 Change Davao 1............................................ 27-3/40 27-5/80 Down 1/80 Davao JI.......................................... 27-1/20 27-1/40 Down 1/40 Davao G.......................................... 25-1/40 25-1/40 Unchanged Non-Davao JI............................... 26/ 25-1/20 Down 1/20 Non-Davao G................................. 20-3/40 20-1/20 Down 1/40 Non-Davao K................................. 16-1/40 16-1/40 Unchanged The London market, after remaining steady for most of the period, began to develop signs of weakness in some medium grades, with a reduction in price of $15 to $10 per ton. Prices on coarse grades closed fairly steady. Bu siness was small. It is believed that considerable business was done with Japan, the volume being possibly close to 20,000 bales. The prices SCAP was willing to pay declined in sympathy with other markets. In the Philippines prices remained about unchanged. Production for December was 50,506 bales—the second highest month in 1949, with March taking the lead by 3,353 bales. The increase over the corresponding month of 1948 is 13,622 bales; and over November, 1949, 16,092 bales. Davao pressings for December were .25,479 bales— up 6,151 bales from November and up 4,531 bales from December, 1948. December balings in Non-Davao areas 72 February, 1950 AMERICAN CHAMBER OF COMMERCE JOURNAL 73 were 25,027 bales—up 9,941 bales from November and up 9,091 bales from December, 1948. Total pressings for 1949 were 513,720 bales or 63,744 bales less than in 1948 and 273,045 bales less than in 1947. The decline in balings in 1949 from balings in 1948 results from a decrease of 81,708 bales in the pressings of NonDavao hemp as against an increase of 17,964 bales in the pressings of Davao hemp. Tobacco By Luis A. Pujalte Secretary-Treasurer, Manila Tobacco Association THE local tobacco industry is again coming to life with the expansion of the manufacture of Virginiatype cigarettes. Capital appears eager to go into this promising field and new factories are already opening. It is important, however, that all those who enter it .give careful attention to the quality of the cigarettes they will put out. So far, the main effort has been concentrated on producing low-priced products, when a medium- and high-quality Virginia-type cigarette would have been as profitable and perhaps more so. I said in my previous article that the tobacco in dustry had been greatly neglected by the Government, and one form of this neglect is the apparent indifference of the authorities to the need of stamping out the illicit manufacture of tobacco products. This illicit manufacture was negligible before the war, but became an industry during the Japanese occupation and has since persisted. It constitutes a great detriment to bonafide manufacturers not only because of the big tax-differential they have to overcome in competing with the illicit manufacturers but because in many cases even their brands are imitated. It is estimated that the Government has annually been losing around P3,000,000 in tax revenue on this account, and unless something is done about the matter, the loss will become much greater because the import control is naturally resulting in increased activity on the part of these illicit as well as the legitimate manufacturers. A few weeks ago, manufacturers were asked to attend a hearing at the Department of Finance on a proposal to increase the specific tax on cigarettes in order to help meet the decrease in revenue from imported cigarettes. The local manufacturers voiced their old grievance as to the rampant illicit manufacture and pointed out that though they were not in principle opposed to a just and equitable increase in this tax, if this were resorted to without first eradicating the illicit manufacture, it would make this even more profitable than it is now. The higher tax-rate might well result in the total ruin of legitimate manufac turers and bring about still greater government revenue losses instead of an increase in revenue. The Government should take decisive action in this matter of suppressing the illicit manufacture, in its own direct interest as well as in the interest of law-abiding and tax-paying industrialists and thousands of workers. At present, only the illicit manufacturer, like the “boot legger” of prohibition times, stands to gain by any hasty move of the Government in raising the tax-rate. NOTE:—Malabon and Caloocan, both very near Manila, are said to be the Imports By Louis S. Kraemer Vice-President, Mercantile, Inc. •HE New York Journal of Commerce on January 19, 1950, carried an article on Philippine Import Control which, in part, ran as follows: ENGINEERING EQUIPMENT r> & SUPPLY COMPANY, Inc. MACHINERY • MECHANICAL SUPPLIES • ENGINEERS • CONTRACTORS AIR CONDITIONING For Offices, Theatres, Hospitals, Stores, Restaurants, Hotels, Clubs and Homes ★ ★ ★ Suppliers of MACHINERY, EQUIPMENT and INDUSTRIAL SUPPLIES For Sugar Centrals, Mines, Sawmills, Power Plants, Machine Shops and All Industrial Plants ★ ★ ★ ENGINEERING — DESIGN — APPLICATION — ESTIMATES INSTALLATION — MAINTENANCE — SERVICE — REPAIRS ★ ★ ★ Operating: General & Sales Office 1 74 M. de Comillas Manila Tel. 3-29-21 MACHINE SHOPS • STEEL PLATE SHOPS STRUCTURAL STEEL SHOPS • WELDING SHOPS • BLACKSMITH SHOPS • SHEET METAL SHOPS • MARINE RAILWAY Engineering Shops No. 1 Calle L. Segura & Pasig River Mandaluyong, Rizal Tel. 6-65-68