Review of the hemp markets

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Part of The American Chamber of Commerce Journal

Title: Review of the hemp markets
Creator: Spellman, L. L
Language: English
Source: The American Chamber of Commerce Journal Volume 6 (Issue No.6) June 1926
Year: 1926
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Fulltext: 20 THE AMERICAN CHAMBER OF COMMERCE JOURNAL June, 1926 REVIEW OF THE HEMP MARKET By L L. Spellman Mud'udt Compunu The last report covered the montr. of April with statistics up to and including May 3 and this rep o rt covers the month of May with statistics up to and including May 31. U.S. G It /I I) E S The general strike in Great Britain de clared the first o1' the month had an immediate effect on all hemp markets. The buyers in the New York market retired immediately as they irealizcd that if the strike should be prolonged it would throw a large quantity of Abaca iibre on the U. S. market and in addition to this th? African Sisal, New Zealand hemp and Java Sisal, usually consumed in the U. K., would be offered to the American buyers. Sellers were offering on the basis of .J 11-1/2C, I 13-3/-1C' and F 14-1/2?. During the first week the shipping houses kept their prices fairly steady but second-hand sellers wen quoting considerably lower prices but buyers remained indifferent. Prices gra dually declined until the middle of the month when shippers were offering on the basis of J lie, I 13c and F 13-3/lc. Notwithstanding the fact that the gene ral strike had been called off, the U. S. buyers continued to look for lower prices. During the last half of the month prices steadily declined and the market closed with sellers but no buyers on the basis of J 10-3/8C I 11-3/ie and F 12-1/2b. During tins period the manufacturers undoubtedly purchased sufficient hemp for their im mediate requirements and it is thought speculators purchased a fair quantity. On the 1st of the month the shipping houses in Manila were not keen to buy and the dealers remained firm. Nominal quotations were E 1’3-1.50, F 32.50, G 24.50, H 17.50, I 31.00, JI 25.50, SI 31.50, S2 29.50 and S3 25.50. With the collapse of the U.S. market exporters immediately dropped their prices and at the end of the first week sales were being made on the basis of D 1’36.—, E 34.—, F 32.—, G 24.— , H 16.— , 1 30.—, Ji 21.4, SI 30.4, S2 28.4 and S3 24.4. The market for the balance of the month continued to decline steadily with the shipping houses confining- their purchases largely to their regular customers. The dealers, however, remained firm in their ideas of value and as a consequence a considerable quantity of hemp has gone into store. Nominal quotations at the end of the month were E 1’30.4, F 28.4, G 22.—, H 15.—, I 26.1, JI 23.—, SI 28.—, S2 26.— and S.” 23.— with neither buyers nor sellers show ing much interest. U.K. GRADES. The U.K. market col lapsed on the first of the month due to the general strike. There nad been very little buying during the last week or ten days of April and sellers at the close were asking the following 'prices: J2 £41.—, K £31.— and L £32.10. The general strike was settled by the 12th but the coal strike continued and the manufacturers were not interested in hemp until toward the middle of the month when a few sales were reported. At this time the Continental buyers com menced to operate to a limited extent. The tnurket for the last half of the month was dull with prices continuing to give way Both the U.K. and Continental spinners were limited buyers and the London dealers seemed to confine their purchases to about the same quantity that they were able to dispose of. The market closed quiet with sellers on the basis of J2 £38.10, K £30.—, L £31.—and M £27.—. The market in Manila for the U.K. grades has been practically at a standstill for the entire month. Nominal prices on the first were J2 P19.50, K 14.50, L 15.50 and M 13.— but there were neither buyers nor sellers. The exporters knew they would be unable to dispose of the hemp at these prices and the dealers claimed the fibre on hand cos': them considerably more. Prices, however, continued to decline and at the end of the month sales were made on the basis of J2 P17.50, K 13.25, L 14.— and M 12.25 for good parcels. GENERAL. Prices during the month declined from Pl.50 to P4.— per picul on the various grades, the average being in the neighborhood of P2.50 per picul or say 1’5.— per bale. The stocks, including province holdings, will reach at least 200,000 bales so it is safe to assume that the British strike cost the hemp industry considerably over Pl,000,000. It is argued in some quar ters that fibre prices were abnormally high. This is probably true but the natural decline would have extended over a longer period and would have enabled holders to liquidate their fibre without loss. FREIGHT RATES. On May 1st the As sociated Steamship Lines reduced the rate on hemp from Cebu to Japanese ports from P2.— per bale to Pl.— per bale. On May 11th they restored the P2.— rate. On the 21st of May they reduced the rate from Manila to Japanese ports from P2.— to 1’1.50 per bale. It is understood the P2.— rate will be restored shortly. It is believed these changes in rate were made on account cf one or two outside steamers taking hemp for Japan at less than Conference rates. The rate on hem]) for the U.K. and Con tinent shipped from Davao for transhipment at Singapore was advanced from 10/— over the Manila rate to 20/— over the Manila GORDON’S DRY GIN For Morelhan 27 Years SAXONKNIT The leading Gin all over the world When ordering a “Martini” Cocktail, be sure to call for a “Gordon’s” Martini Cocktail. Discrim inating mm have found that we do best tail oring and have the largest selection of good suitings. BATHINGSUITS AND MANILA BAY SQUIRES-BINGHAM COMPANY Sportsmen’s Headquarters Where all the good fellows meet 15 Plaza Goiti Manila Phone 300 New York-Paris-Manila 12 Escolla Phone 7(6 IN RESPONDING TO ADVERTISEMENTS PLEASE MENTl ON THE AMERICAN CHAMBER OF COMMERCE JOURNAL June, 1926 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 21 rate. There was a fair amount of hemp moving via this route but the advance makes it more expensive than bringing the hemp to Cebu or Manila on Interisland boats. If it was the intention of the steam ship lines to eliminate transhipment at Sin gapore, they have been entirely successfull. STATISTICS. We give below the figures for the neriod extending from May 3rd to May 31st, 1926. 1926. 1925. Stocks or. January 1 . . Receipts to May 31 . . Stocks on May 31 . . . 153,181 559,130 205,633 131,228 525,969 178,230 To the United Kingdom. . Continent of Europe. . Atlantic U.S. . . . U.S. via Pa cific . . . Japan. . . Elsewhere & Local. . . TOTAL . . SHIPMENTS. To May 31, 1926. 121,665 Bales 66,773 1-16,793 51,682 86,226 33,539 To June 1, 1925. 134.606 Bales 51,858 ” 134,868 ” 57,776 ” 46.681 ” 33.118 ” 1 506,678 Bales 478,907 Bales COPRA AND ITS PRODUCTS By R. K. Zerjhkr Copra Milling Corporation Complete returns for April show ar rivals at Manila as 180,500 bags or 38% more than the April average for the past three years. May arrivals as reported up to the date of this article were 244,800 bags or 36% more than the May average for the past three years. May prices at the opening of the month were 1’12.50 for buen corriente and 1’13.75 for resecada copra. There was not much of a variance in these prices until May 10 when buen corriente was quoted at P12.25 and resecada at Pl3.50, with but little copra being offered. Sellers were holding out for higher prices to realize on stocks which they had on hand. By the 15th buyers came into the market and prices were advanced to 1’14 resecada for large lots. Up to the end of the month there was a steady in crease in price and the month closed with buen corriente quoted from PI 2.87 to P13.25 and resecada from P14.25 to P14.375. One quite large parcel was sold at P14.50 and a few smaller parcels have been sold at near this figure. There is quite a demand for buen cor riente in certain quarters, for milling pur poses. Exporters are buying heavily in the Tayabas district, as a result of which prices are almost a peso per picul above Manila river copra prices. Large shipments have arrived from the southern islands which accounts for the excess over normal ar rivals. The London market has steadily advanced from L-28/0/0 to L-28/12/6 f. m. m., with the exception of a period during the early part of the month when it dropped to L-27/15/0 f. m. m. due to strike disturban ces in England. Copra prices appear to have reached a maximum and with the approaching period of heavy production a decline may reasonably be expected. Closing quotations were: — London-f.m.m. —L-28/12'6 San Francisco ■—5-5/8 cents Manila-resecada—1’14.25 to 1’14.375 COCONUT OIL The animation in the coconut oil market which opened up during the latter part of April continued at advancing prices thru May until the closing days when it settled down to a firm market with but few trans actions. May opening prices were 8-7/8 to 9 cents f.o.b. tank cars west coast, and 9-1/4 cents New York. Seller? began forcing the market, offering oil in anticipa tion of cheaper Straits Settlement copra as a result of the strike conditions in England. Buyers held eff expecting 8-1/2 cent oil, but the strike situation having cleared up the price advanced to the former level. Competing fats and oils began to show strength at this time and the coconut oil market responded quickly, spot May sales being made at 9-3/8 with 9-1/4 for June and 9 cents forward. Sellers withdrew from the market after some large sales had been made, most of which were specu lative. Buyers advanced their ideas and sales were made at 9-1/2 -cents June and July tank cars. The market remained strong and prices advanced to 9-5/8 for June tank cars, with corresponding at tractive forward prices. At this time se veral of the larger consumers of coconut oil made purchases which temporarily filled up the source of demand and the markef reverted to 9-1/2 cents tank cars, firm but with no business done. The approaching season of heavy produc tion of copra and a weakening of competing oil and fats has apparently had a depresHsing effect, .and further strength will probably not develop. Closing quotations are: — London —No quotation San Francisco—9-1/2 to 9-5/8 cents tank cars, spot. Manila —P.12 per kilo COPRA CAKE The closing quotation of L-7/15/0 for April dropped to L-7/10/0, L-7/5/0 and L-7/2/5 by the middle of the month. The Hamburg warehouses were reported full of cake, awaiting higher prices. Locally, sellers were holding out for P50 ex warehouse but buyers were not in terested at that price. NEW CITY LICENSE TAXES The following schedule of license taxes has been approved by the municipal board and is up to the mayor for action: Class A livery garage with 50 automobiles ................................. P720.03 Class B livery garage with not more than 50 motor vehicles. . . . P360.00 Class C livery garage with more than 20 motor vehicles but not more than 30............................. P300.00 Class D livery garage, from 10 to 20 motor vehicles....................... P180.00 Class E livery garage with less than 10 motor vehicles............. P120.00 Garages that are used for deposit ing motor vehicles..................... i' 60.00 Livery stables will pay about P17 a year besides the two pesos for every horse used for sendee. For every month of use of the merry-goround, tax of P20 will be paid the city treasurer. Soft drink factories will be required to pay the city treasurer a t-x varying from POO to 300. Junkshops will pay the city a license fee of P75 a year. Repair factories will pay from P100 to P100 depending on the machinery used. Lumber yards shall be taxed from P200 to P600. Before a license to keep a lumber yard can be obtained, the approval of the fire police departments must first be sought. The following factories are taxed as follows: Match factory ....................... P250 Candle factory....................... P200 Soap factory........................... Pl00 to P350 Repair factory ....................... P 25, Automobile repair shop........ P400 Oil factories from ................. P 50 to P600 Foundry shops from ........... P200 to P800 Carpentry shops from .......... P 25 to Pl 50 Box factories ......................... P200 Shoe factories from............... P 50 to P400 Tile factories from ............... P 20 to P390 Hat factories from ............... P 20 to P209 Umbrella factories from.... P 50 to P100 Blacksmith shops from......... P 25 to P500 Repair shops from ............... P 20 to P100 Ice Cream factories ............. P500 Jce factory ............................. P 59 Watch repairs ....................... P100 Luzon Stevedoring Co., Inc. Lightering, Marine Contractors, Towboats, Launches, Waterboats, Shipbuilders and Provisions. SIMMIE C& GRILK Phone 302 Port Area IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL
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