Copra.

A Very Dead Market.

THE copra market continues depressed, without a sign of life in it. Prices remain between £10 and £11 per ton, sterling, with an occasional feeble move of 2/6, up and down.

The market has been in this condi tion since the beginning of April—for five months —and, if it were not for the exchange premium received by the Australian section of the Western Pacific, copra-cutting would almost have ceased. Never, in the long his tory of the copra industry, have prices been at so low a level, and the market remained so dead, for so long a period.

In Sydney, all Islands interests now are watching almost feverishly for some sign or portent which will indi cate a recovery of the market; but, at the moment of this writing (August 17) the gloomy prospect is quite unrelieved.

In the very nature of things, it seems that a break must soon come in the long procession of low prices. It is clearly overdue; but it is clear also that all overseas commercial interests are nervously awaiting the outcome of far reaching political developments in Central Europe and in the United States, and there will be no strength or confidence in the world markets un til the world sees a little more clearly what is to be the outcome of the epoch making experiments of Hitler and Roosevelt.

Reduced Margarine Demand.

There are two factors operating in Europe which, probably, are affecting the copra market adversely. Hitler, in June, issued instructions that the im portation of copra be severely reduced —evidently with a view to reducing the quantity of margarine manufactured in Germany, and thus assisting the Ger man dairy industry.

In Britain, for several months, there has been an extraordinary glut of but ter. There has been a good dairy season in Britain itself; while excep tional quantities of oversea butter have poured in from Denmark, Russia, Aus tralia and New Zealand. In conse quence, butter prices have fallen and fallen, so that good quality has been sold at less than 1/- per pound. Second grades have been at ridiculous prices, and within a penny or two per pound of margarine. In consequence, tens of thousands of people who usually eat margarine have become butter consumers, and the demand for margarine has fallen accordingly. This has had a markedly depressing effect on the demand for copra, and similar components of margarine.

Whale Oil.

About the only silver lining to this cloud, from the coconut grower’s view point, is seen in the whale oil market.

It was reported, early in July, that the Whaling Association had reduced the production of Antarctic whale oil for the 1933-4 season to 1,850,000 barrels, representing a total reduction of 250,000 barrels compared with 1932-3.

An American firm bought a large quan tity at £12 per ton, but otherwise the market appears lifeless. A couple of years ago, it was said that the cost of whale oil production was £15 per ton.

It is probable that this season’s produc tion will not reach 1,850,000 barrels.