Copra and coconut oil

Title

Creator

Day, Kenneth B.

Keller, D. C.

Language

English

Source

The American Chamber of Commerce Journal Volume XXVII (Issue No. 7) July 1951

Year

1951

Rights

In Copyright - Educational Use Permitted

Fulltext

July, 1951 AMERICAN CHAMBER OF COMMERCE JOURNAL 231 BASE METAL PRODUCTION IN THE PHILIPPINES Chamber of Mines of the Philippines APRIL MAY Quantity Value Quantity Value NAME M.T. jin Pesos M.T. in Pesos Consolidated Mines, Inc.......... 20,000 P484.800 17,800 P427.200 Lepanto Consolidated Mining Co............................................... 969 926,248 903 851,776 Mindanao Mother Lode Mines, Inc............................... 26 23,845 24 20,913 Philippine Iron Mines, Inc... . 43,703 546,288 54,495 874,171 Samar Mining Co., Inc............ 20,223 370,099 28,239 516,774 Marinduque Iron Mines......... 3,853 73,207 3,354 63,726 Acoje Mining Company........... None None 5,000 194,650 Misamis Chromite Mining Co............................................... None None 1,209 72,540 Luzon Stevedoring (Chromite) None None 1,800 72,000 Looc-Lead-Silver Mines.......... None None None None Surigao Consolidated Mining Co............................................... 34 25,327 33 34,865 Luzon Stevedoring (Manga nese) .......................................... None None 3,200 128,000 218,400 General Base Metals................ None None 4,368 1,100 Palawan Manganese Mines... None None 88,943 Amalgamated Minerals, Inc... None None 1,418 81,677 None Badillo Mining Co..................... None None None Copra and Coconut Oil By K. B. Day and D. C. Keller Philippine Refining Company, Inc. May 16—Jane 15 BOTH the copra and coconut oil markets continued to fall sharply during the period under review and comparatively little business, apart from German purchases, has been reported. On the Pacific Coast, copra prices fell from $205 per ton c.i.f. to $175 without attracting any real buying in terest. A similar indifference to the market was displayed by Europe where the price also fell by $30, i.e., from $250 per ton c.i.f. at the beginning of the period to $220 c.i.f. on June 15. The one bright spot during the period was the purchase by Germany of some 6,300 tons of Philippine copra at a price equivalent to around $227.50 c.i.f. Ham burg. The local market kept in line with the general de cline; prices were quoted on May 16 of P38 per 100 kilos and had fallen to P33 on June 15. Local dealers were very uneasy and over-cautious in their trading, feeling that with every new decline the market had at last reached “bottom”; indications, however, are that prices may con tinue to fall. Oil prices in the United States experienced similar downward trends; opening offers of 16 cents f.o.b. Pacific Coast which went unaccepted had fallen to 13-1/4 cents f.o.b. at the end of the period and apart from a few small resales of tank-cars we have heard of no other trading having taken place. There was no interest in bulk oil. In Europe, Germany once again stepped into the picture with purchases of 4,500 tons of oil at a price equivalent to $324.50 per ton c.i.f. Hamburg, this time partly from Philippine sources and partly from Coast mills which sold at 13-1/2 cents f.o.b. Pacific Coast. Aside from this business, however, there was a com plete lack of interest and the market continued weak, and sellers who were holding for $375 per ton c.i.f. Europe on May 15, were offering freely at $330 on June 15 without eliciting interest. There is little doubt that one of the chief causes of the weak market, both in America and Europe, can be •attributed to the new “peace in Korea” possibilities which have grown steadily stronger during recent weeks and have led to a general slow-down in business and a reduc tion in inventories. NOV/./ FOR THE FIRST TIME Silvertown NON SKID DESIGN Silvertown TREAD DEPTH TREAD WIDTH Silvertown COLD RUBBER Goodrich International Rubber Co. OFFICE & BODEGA 13th & ATLANTA, PORT AREA TEL. No. 3-37-21 RECAP PLANT 207 RIZAL AVE. EXT., GRACE PARK TEL. No. 2-72-23 232 AMERICAN CHAMBER OF COMMERCE JOURNAL July, 1951 Once again the copra-meal market brings a happy note to a dismal report, and we are pleased to say that prices continued to rise with an increasing demand from buyers on the Pacific Coast. Prices quoted May 16 were $61 per short ton c.i.f. and rose to $64 on June 15, and although this is probably due to a seasonal demand we feel that the market can still rise a little further because supplies are limited. We learn also that Denmark is ex pecting an allocation of E.C.A. dollars for Philippine copra meal and will soon be interested in buying. The situation regarding shipping space remains the same, i.e., no difficulty in obtaining space to the United States, but a shortage of both copra space and deep tanks to Europe. With the present lack of buying interest, however, this is not as serious as in previous months. Figures submitted for May shipments are as follows: Copra Pacific............... 16,349 long tons Atlantic............ 5,164 ” ” Canada............. 2,900 ” Belgium............ 4,450 ” Holland............. 7,750 ” ” France............... 954 " ” Italy.................. 1,700 ” ’’ Denmark.......... 1,500 ” ” Sweden............. 1,000 ” ” Germany.......... 500 ” ” Morocco........... 631 ” ” Columbia......... 5,380 ” ” Total........ 48,278 long tons Coconut Oil Atlantic............. 3,092 long tons Belgium............. 412 ” ” Union of South Africa613 ” ’’ Total......... 4,117 long tons Copra Cake and Meal Honolulu........... 495 long tons Pacific Coast. . 3,536 ” ” Europe............... 750 ” ” Total......... 4,781 long tons On May 11, Republic Act 613 came into effect. This Act, known as the Export Control Law, is designed to control exports in the interests of national security and economic rehabilitation. Under its provisions, as imple mented by Executive Order, all exports are carefully con sidered, classified, and if necessary screened. While coconut products to friendly destinations are not generally ques tioned, the mechanics of clearing exports through the Export Committee results in additional red tape for ex porters. We believe, however, that as the Committee gathers experience, such difficulties will be minimized, for there is every evidence of desire to cooperate insofar as the law permits. The decline in copra and coconut oil prices has been paralleled in competing products, notably cottonseed oil, soya bean oil, and tallow. The new lower levels should point to better business later in the year, for coconut oil is becoming very reasonably priced. But the Philippine economy is being hurt, because the Government has been counting on higher prices than those now pertaining. It is interesting to compare the price of 13-1/4 cents f.o.b. Pacific Coast which was offered unsuccessfully on June 15 with the price of 14 cents which was ruling just before the Korean crisis a year ago. We believe that this is the . only oil which is back to pre-Korean levels. With copra production normal, and with another year of bumper crops in prospect in the United States, with consumption and supplies of fats for European require ments nearly in balance, there is no economic justification for expecting sharp price increases, although our markets will undoubtedly continue to fluctuate. The big question marks are political and military developments, and it would require a brave man to take much of a trading posi tion with everything so uncertain. It is a distressing paradox that while the “threat of war” results in our Ex port prosperity, the “fear of peace” has exactly the op posite effect. These are trying times indeed, through which we are passing. MORE POWER TO THE PHILIPPINES A new General Electric floodlight for sports fields and recreation areas throughout the Philippines will reduce installation and main tenance costs. Every worthwhile feature from the results of General Electric's long engi neering experience is incorporated in this floodlight. . . spun-in glass front...........im pact-resisting Tufflex tempered plate . . glass rifle sights choice of three beam spreads. The football field of the Rizal Sta dium is equipped with General Electric flood, lights to assure correct lighting at minimum main tenance costs. GENERAL ELECTRIC (P. I.), INC. PORT AREA MANILA

pages

231-232

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