Sugar

Title

Sugar

Creator

Jamieson, S.

Language

English

Year

1949

Rights

In Copyright - Educational Use Permitted

Fulltext

they can easily do that at substantially under Con ference rates. WE have persistently stated that anything can happen in copra and coconut oil markets, and usually it is the unexpected which comes up. Two months ago, everything pointed to lower copra and oil prices during the remainder of the year. Today the picture is changed and it may be that we have seen our low prices for the year in July, and that the markets may hold steady for the rest of 1949. Un deniably, there is a great deal of speculation going on, and so many false reports and rumors are current that there is no real certainty of anything. At the same time, signs do point to a steadier situation dur ing the coming months than had been thought possi ble. This does not preclude drops in price, which are to be expected, nor does it rule out an entire change in the overall picture at any time due to gov ernment action or to foreseeable circumstances. But it does indicate that the practically unanimous opi nion of the trade of a few months ago, has once again been upset and that, for the moment at least, copra and coconut oil prices are likely to maintain higher levels than anyone had expected. The unjustified spread between coconut oil and domestic fats and oils remains unchanged, however, and as long as this per tains, coconut oil will be used only where essential and in minimum quantities. This invites eventual adjustment, possibly later this year, when the “pipe lines” are again full, and production and consump tion are more nearly stabilized. Dessicated Coconut Howard R. Hick President and General Manager Peter Paul Philippine Corporation THIS report covers the period July 15 to Aug ust 15, 1949. Generally the industry continued at re duced capacity. The Peter Paul Philippine Corpora tion was shut down due to high inventory in the United States and Blue Bar remained shut down in Luzon. The copra market firmed up during this period but generally the desiccators were able to bring coco nuts down to lower than copra-value due to less activ ity in the Luzon area. At the close of the period the desiccators experienced a little difficulty getting nuts due to the fact that while they were shut down, nut supplies had been diverted to copra and to bring nuts back to the desiccators it was necessary to campaign and even pay .a little more than the copra-equivalent to re-establish connections again. Philippine copra and nut prices have well re flected world-values, and after four months of such a trend it can be said that copra and nut prices are normal and no longer so easily affected by local con ditions as up until four months ago. Labor-management problems were at a minimum and generally labor seemed to be settled as far as management was concerned. The Franklin Baker Company labor problem is an inter-union problem at bottom and does not directly affect the management. The shipping statistics for the month of July are as follows: Shippers Pounds Franklin Baker Company ............ 4,409,340 Blue Bar Coconut Co..................... 584,130 Peter Paul Philippine Corporation 0 Red V Coconut Products, Ltd. ... 2,167,300 Sun-Ripe Coconut Products, Inc. . 883,000 Standard Coconut Corporation ... 396,500 Co-operative Coconut Products .. 252,000 Tabacalera ..................... 642,000 Coconut Products, Inc.................... 543,850 Luzon Desiccated Coconut Corp. . 227,200 Universal Trading Company ....... 0 10,105,320 pounds Sugar By S. Jamieson Alternate Secretary-Treasurer Philippine Sugar Association THIS review covers the period July 16 to Aug ust 15. Following the very severe decline re corded in our last report, markets generally steadied, closing distinctly firm. Before the end of July, it became apparent that production for the month would be materially smaller than for the previous month, and exporters withdrew their offers on the New York market or only offered very sparingly. This policy steadied consuming markets, and buyers who had watched the decline came in only to find that there was little available. Prices recovered sharply with a minimum amount of business being recorded. In the Philippines, the market developed a firm tendency as soon as the improvement in consuming markets began, and at present local dealers are hold ing off expecting higher prices. Philippine provincial quotations, August 15: Per Picul Basis Loose Davao I . . . . P55.00 --Up P2.50 per picul since July 15. Davao JI . . . . 54.00 --Up 2.50 ” ” ” ” ” Davao G . . . . 47.50--Up 3.00 ” ” ” ” ’’ Non-Davao I . . 50.00--Up 3.00 ” ’’ ” ” ” Non-Davao G .. 36.00 --Up 1.00 ” ” ” ” ” Non-Davao K .. 24.00--Unc:hanged. New York quotations, August 15: Per Lb. c.i.f. New York Davao I . . . . . 26%<f— Up 1<? per lb. since July 15. Davao Jl . . . . 25% —Up % ” ” ” ” ” Davao G . . . . 23% —Up 1% ’’ ” ” ” ” Non-Davao I . . 24% —Up % ” ” ................... Non-Davao G . . 18 —Down %(*” ” ” ’’ ” Non-Davao K . . 14% —Up ” Production for July, 1949, was only 35,625 bales — a decrease of 10,222 bales from June, 1949. Non Davao balings totaled 19,203 bales — down 5,364 bales from June. Davao balings were 16,422 bales — down 4,858 bales from June. Exports for July amounted to 29,816 bales. Production for the first 396 September, 1949 AMERICAN CHAMBER OF COMMERCE JOURNAL 397 seven months of 1949 amounted to 317,266 bales, against exports of 295,870 bales for the same period. Production for the first seven months of 1948 amounted to 401,131 bales — 83,865 bales more than for the same period this year. Manila Hemp By H. Robertson Vice President and Assistant General Manager, Macleod and Company of Philippines THIS review covers the period from August 1 to August 31, 1949. New York Market. — The market opened with sellers at 5.900 for prompt shipment but no buy ers. For the first 10 days of the month, it was quiet but steady; there were small sales of Puerto Ricos at 5.85^ for August shipment and a parcel of 3,000 tons Philippines afloat was resold at the same price. Thereafter the market firmed up and became quite active, starting off with a sale of 9,000 tons of Puerto Ricos at 5.880 for August/September shipment, fol lowed by sales of close to 100,000 tons at 5.900 for August/September/October shipment. The market became still firmer toward the end of the month, perhaps upon the trade’s realization that the avail able balances of United States quota sugar in Cuba and Puerto Rico were fast dwindling, and small sales of Cubas for second half of September shipment were made at 5.950. On August 29, the U. S. Secretary of Agriculture announced the re-allocation of an esti mated Hawaiian deficit of 200,000 short tons, of which Cuba got 126,220 tons, Puerto Rico 48,696 tons, and United States mainland cane 25,084 tons. This re-allocation does not, of course, increase the total quantity of quota sugars allotted to the United States market during the year, but will have the effect of making additional supplies of Cuban and Puerto Rican sugar immediately available to United States buyers. However, it is believed that the statistical position of supplies in relation to demand is such that this re-allocation is not likely to curb the growing strength of the market. We give below the closing quotations on the New York Sugar Exchange for the period August 1 to 24, 1949, for contracts Nos. 4, 5, and 6: Contract No. 4 Contract No. 5 Contract No. 6 September ............ November ............ 4.170 5.420 5.344 December ............. 5.41 5.38 January ............... 5.31 5.30 March .................. 3.92 5.20 5.13 May ....................... 3.92 5.21 5.14 July ...................... 3.92 5.21 5.16 September, 1950 . . 5.21 5.16 November ” .. 5.17 Local Market. — (a) Domestic. A survey of supplies available for domestic consumption as of August 1 indicated a stock of 31,000 tons, which was barely sufficient to cover requirements up to the end of September. As a result of the long dry spell earlier in the season, the start of next milling season will be delayed until well into October, and in an ef fort to assure adequate domestic supplies at reasonENGINEERING EQUIPMENT & SUPPLY COMPANY, Inc. 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