Review of the hemp market

Title

Creator

Smith, T. H.

Language

English

Source

The American Chamber of Commerce Journal Volume 7 (Issue No.9) September 1927

Year

1927

Rights

In Copyright - Educational Use Permitted

Fulltext

22 THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1927 RAIL COMMODITY MOVEMENTS By M. D. Royer Traffic Manager, Manila Railroad Company U. S.—THE CROP SITUATION REVIEW OF THE HEMP MARKET By T. H. Smith Vice-President and General Manager, Macleod &• Company The following com modities were received in Manila July 26 to August 25, 1927, both inclusive, via Manila Railroad: 1927 Rice, cavans. . Sugar, piculs. . Tobacco, bales. Copra, piculs.. Coconuts......... 265,000 16,668 39,600 157,300 2,705,000 Lumber, B.F................... 202,500 Desiccated coconuts, cases 15,334 July 275,750 18,816 37,300 120,500 1,022,000 523,800 12,382 The small grain crops are nearly made, with yields better than those of last year. The Government’s estimate upon winter wheat, based upon prospects July 1, is for 579,000,000 bushels, against 627,000,000 last year and 556,000,000 as the average of the last five years. Spring wheat promises a much larger yield than last year, to-wit: 274,000,000 bushels, against 205,000,000, at which the total of all wheat would be 22,000,000 larger than last year. The condition of Spring wheat, however, improved during July, and the crop is likely to make 300,000,000 bushels. From Minnesota to the Pacific Coast there is scarcely a break in the favorable reports upon the outlook, not only for wheat but for other crops. This report covers the markets for Manila Hemp up to and in cluding August 29th, 1927. U. S. Grades: U. S. market opened quiet with shipping houses showing more desire to make progress. Nomi nal quotations were D, 18-1 4 cents; E, 17-1 '4 cents: F, 16-3/8 cents; G, 10-1/8 cents; H, 9-1/2 cents; I, 14-3/4 cents; JI, 11-3/4 cents; SI, 16-1/8 cents; S2, 14-3/8 cents. Very little business was transDon’t waste money: Use our free service OIL IN MALAYSIA Three fields in Malaysia and southeastern Asia are now producing oil, Borneo, Burma and Sumatra, and the black gold seems inexhaustible in all of them. Success has followed the employ ment of American expert drillers in Burma and Sumatra, replacing Europeans. The Americans seem to have the knack of making good strikes, they put on their jumpers and stay with the job. For instance, four years ago, when the shift was made from Europeans to Americans on one concession in Sumatra there were three flowing wells, and now there are 36 flowing wells. The Burma fields are north of Rangoon, near Mandalay; the old Mermain pagoda now looks lazy at the sea over a skyline of derricks; the gusher is rousing the place from its dreamy mysticism. Business is shared by several com panies, all English capital. The Anglo-Persian and Burma Oil companies are prominent. They don’t hesitate to employ Americans. The Borneo field is exclusively dominated by the Shell company, supplying its trade in the Phil ippines from its refineries at Balikpapan. The Standard Oil company ventured into Borneo 18 years ago, had small luck and then went into the Sumatra field. This is in the Palembang Residency, in southern Sumatra, the field lying west of the port of Palembang. There are three concessions theie. The Standard’s first well is eight years old. It now has 40 producing wells, all flowing, all averaging 4,000 barrels per day. This supply is largely held in reserve. A refinery, the most modem in the world, it is said, has been erected at Palembang at a cost of $4,000,000. It is in the charge of an American and has a daily capacity of 7,000 barrels. The district is grow ing in importance, therefore, Sumatra has proved to be another bonanza oil field. This will show more in the future than it does now. The output of oil in the Dutch East Indies in 1926 was 21 million barrels, and all but 28,000 barrels was Shell product. In the oil fields of Sumatia, Malays, Javanese, and Chinese are employed as workmen. They work in gangs of seven, each gang having over it a straw boss, and wages are 40 to 60 cents a day. After several years of struggling with surplus stocks, the leather industry has so thoroughly liquidated itself that there is now a scarcity of raw and finished supplies, not alone in this country but all over the world. With demand for leather increasing, and no way of immediately increasing the supply of hides, prices have ad vanced sharply. Express Pick-up and Delivery Service The MANILA RAILROAD EXPRESS TRUCKS furnish free PICK-UP SERVICE for BAGGAGE or EXPRESS SHIPMENTS to be transported outbound over the Railroad. Those desiring to avail themselves of this SERVICE may do so by giving the necessary instructions to the billing clerk at the EXPRESS OFFICE or Calling up Telephone 4-97-75 or 4-98-61. ECONOMY, CONVENIENCE and SATISFACTION are the outstanding features of this SERVICE. This is one of the FACILITIES offered by the MANILA RAILROAD for the accommodation of its PATRONS. For this SERVICE a Fleet of EXPRESS TRUCKS is operated by the COMPANY to make home deliveries of BAGGAGE and EXPRESS SHIPMENTS within the Manila City Limits and to designated districts within the municipalities of PASAY and SAN JUAN DEL MONTE, Rizal, at low RATES. MANILA RAILROAD COMPANY 943 AZCARRAGA MANILA, P. I. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL September, 1927 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 23 acted, the market ruling dull with a drooping tendency, prices touching the lower level of D, 17-3/4 cents; E, 16-3/4 cents; F, 16-1/4 cents; G, 9-3/4 cents; H, 9-1/2 cents; I, 14-1/2 cents; JI, 11-5/8 cents; SI, 15-7/8 cents; S2, 13-7/8 cents. At the close of August a steadier market ruled, buyers taking more interest but closing values remained without appreciable change. Business throughout the month has been within a small compass and prices below those ruling in Manila. Manila market for U. S. grades opened firm D, 1*43; E, 1’40.4; F, 1’39; G, 1*22.4; H, 1*21.4; I, 1*34; JI, 1’27.2; SI, 1*38.2; S2, 1*33.4; S3, 1*27.2 and round about this range of prices dealers contracted for most of their August supplies. The dull tone in New York was reflected here in the lack of export houses to go on buying at last prices and market declined to a basis of D, 1’42; E, 1’39.4; F, 1’38; G, 1*21.4; H, 1’20.4; I, 1*33.2; JI, 1’26.2; SI, 1’37; S2, 1’32.2; S3, 1’26.2. Little business, however, was transacted on the decline and market closed fully steady to firm at these prices. U. K. Grades: London ruled quiet but steady at the opening of August, quotations being J2, £43.10; K, £42; LI, £41.10; L2, £40.10; Ml, £40.10; M2, £37; DL, £37; DM, £30, thete being rather sellers at these prices for AugustOctober shipment. By the middle of the month a firmer tone set in with market turning to buyers at last prices. A smart demand was experienced for a short spell with a fair business passing at J2, £44; K, £42.10; LI, £41.10; L2, £40.10; Ml, £40.10; M2, £37; DL, £37. A fair business also passed in better qualities at satisfactory prices compared to U. S. quotations. Market for the balance of the month ruled steady with business done up to J2, £44.10; K, £43; LI, £42; DL, £38; other grades remaining unchanged in price. Closing values were J2, £44; K, £42.15; LI, £42; L2, £40.10; Ml, £40.10; M2, £37.10; DL, £37.10, tone being steady. Manila market opened firm J2, P21.2; K, 1*20.4; LI, 1’19.6; L2, 1’19.2; Ml, P19.2; M2, 1’17.4; DL, P17; DM, 1’13.4. Very little U. K. hemp fame in to the Manila market and values practically unchanged throughout the month, business being done however up to J2, 1’21.3; K, 1’20.6; LI, 1*20; L2, 1’19; Ml, P19; M2, 1’17.4 with single lots of desirable grades at 2 to 4 reales premium on these prices. Transactions have been very limited and prices are firm at the close on a basis of J2, 1*21; K, P20.2; LI, P19.6; L2, 1’18.6; Ml, 1’18.6; M2, 1*17.4; DL, P17; DM, P14. A feature to note is the reduction of Daets produced on account of the high price ruling on damaged grades. Japanese demand during August has not been active. Freight Rates: Unchanged. Statistics: We give below figures for period extending from August 2nd to August 29th, 1927: 1927 1926 Stocks on Receipts t Stocks on January 1st... . o August 29th. . August 29th.. . . 112,382 836,973 152,555 153,181 863,274 165,244 Shipmen t s To the— To Aug. 29, 1927 Vales 30°1926 Vales United Kingdom............. Continent of Europe. . . . Atlantic U. S.................. U. S. via Pacific............. Japan................................ Elsewhere and Local. . . 210,618 87,140 178,802 83,467 167,094 69,679 177,121 118,994 225,649 112,035 157,078 60,334 796,800 851,211 I. Posner’s Official Road Guide of the Philippines for 1928 is off the press. A general map of the islands traces all the roads; there is also a complete railway map and a number index maps. It is a valuable guide, cost one peso; discounts to the trade. TOBACCO REVIEW By P. A. Meyer Alhambra Cioar and Cigarette Manufacturing Co. Shipments abroad follows: Raw Leaf: Export shipments maintain a satisfactory level. Also trading in local 'grades has shown continued activity during August. The earlier unfavorable crop reports, especially in regard to Cagayan and the lower part of Isabela province, are, unfortunately, being confirmed by subsequent inspections of leaf stored in the farmers’ houses, during August, 1927, were "North Coast Limited” “One of America's Fine Trains shows you the Cascade Mountains, the Rocky Moun tains and the Mission Range by daylight. From the main line of the Northern Pacific, travelers see 28 ranges of mountains, and the train rolls along 1406 miles of rivers—pictures of "startling beauty” all the way. The "North Coast Limited” is a new train—new engines one-third of a block long! New Pullmans, new observation cars, wonderful new type dining cars. We Meet All Boats at Victoria and Seattle A. D. Charlton, G. P. A., Poi ttand, Ore. R. J. Tozer, A. G. P. A., Seattle, Wash. W. H. Jaynes, G. A., Vancouver, B. C. E. E. Blackwood, G. A., Victoria, B. C. Northern Pacific Railway “First of the Northern Transcontinentals” ■r L' “! Belgium............................ 39,241 China.................................... 50,558 Germany.............................. 54,200 Hongkong............................. 19,853 Japan.................................... 82,650 Spain......................... 2,373,582 Straits Settlements............. 1,984 United States...................... 56,844 2,678,912 Cigars: The Philippine cigar situation in the United States continues very unsatisfactory, with signs for improvement lacking. Compa rative figures for the trade with the States are as follows: August, 1927........... 12,908,114 July, 1927................ 14,664,998 August, 1926............ 13,579,849 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL

pages

22-23

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