Products Of The South Seas
p. 17 · Read in the full issue
Copra Prices React to Sterling Readjustment
COPRA, during the month, in creased in price about 20 per cent., from the calamitously low level of £10/7/6 per ton, in the middle of September.
This increase was a direct result of Britain going off the gold standard.
The world value of copra is fixed in terms of gold, and British sterling is now 20 per cent, under gold. There fore, the copra quotation (which is always given in terms of sterling, c.i.f.
London) increased 20 per cent. This increase was extremely welcome to all planters—copra at £10 odd per ton simply spelled ruin. Copra at the pre sent price (around £12/10/- per ton) does at least allow the producer to live.
As is indicated in an article else where, copra producers in the Austra
lian division of the Pacific who con form to Australian currency conditions are much better off, as they get the benefit of the 30 per cent, which Australian currency is rated under sterling. That is to say, if copra is quoted at £12/10/- in sterling, it is worth over £15 in Australian currency —which fact is accepted complacently in Papua, New Guinea and the Solo mon Islands.
The other conditions governing the copra. market—namely, demand and supply—have not altered much during the month. The world’s capacity to consume all commodities remains des perately low, and prices languish accordingly. But tremendous finan cial and economic readjustments are taking place all over the world, and 19 32 may see marked alterations in commodity prices.