Products Of The South Seas

Copra Prospects Showing More Hopeful Signs

AN excellent summary of the copra position generally, by Messrs.

Browne & Joske Ltd., of Suva, appears on another page.

The latest developments are inter esting. The market has recovered to just under £13 (London) and has again slumped slightly. All South Seas copra is being sold at these prices. No quick recovery can be expected; but the spe cial as well as the general factors operating against copra are changing in character. Here, for instance, is a paragraph of great importance, from The Financial News, of 23rd May last: It is reported all surplus stocks of whale oil, accumulated in Norwegian ports (about 100.000 tons) which Unilever said they were unable to absorb, has been sold to German Consumers’

Co-operative Society, which owns a margarine factory, at the exceptional price of £8 per ton

i.e., less than one-third of the price paid last year by Unilever Ltd.

The significance of this need not be emphasised. It means, first, that the enormous whale oil stocks (which did more than anything else to “knock the copra market end-ways”) are being rapidly absorbed; second, that as whale oil costs not less than £15 per ton to actually produce, sales at £8 will tend still more to check over-production.

Reports from other countries indi cate a steady decrease, not only in copra itself but also in the output of almost all other vegetable oil-seeds, which compete with copra.

The position for copra-products is still very hard and very difficult; but it can be said definitely that prospects are steadily improving, and that prices by the end of the year should return to a range that will return some fair profit.