London Markets

The Copra Position

From Our Own Correspondent.

LONDON, December 16.

The world is slowly but surely settling down to being governed by corporations.

The cartage contractors, such as Pick fords and Carter Paterson, have now joined the Railroad groups. About 100 wage-earners have been dismissed, but two big £3500 p.a. directors are added to the boards—for cheaper and more efficient working, they say. The wage-earners represent a reduced expenditure weekly of £150; and the directors’ cash will be banked and used later, perhaps for specu lation.

The following are the closing prices of yesterday: SUGAR is quiet and easier for futures.

March sold for 4/7½, whilst next Oct. Nov. and Dec. are quoted at 5/2, 5/2 and 5/3½ respectively, all per cwt. c.i.f.

COCOA is firm at the low price of 17/9 per 50 kilos c.i.f. Jan. shipment. The call market for ACCRAS was Dec. 19/-, Jan. 18/9, Feb. and March 18/9, up to 20/3 for Oct., per 50 kilos, c.i.f. terms. Lagos: F.a.q., sellers, Jan./March 17/- c.i.f., 50 k.

Bahia: Dec./Feb., 24/-, sellers. Samoan is still unsaleable, and little, if anything, is moving.

RUBBER; The talk on Mincing Lane was not quite so animated, and the trend showed that the market was steadier, though quiet. Both Liverpool and London stocks are expected to be up next week by 150 tons, and 100 tons respectively, whilst the prices ruling were: Spot and Dec, sold from 4 3/16 to 4 7/32 per lb., and value; Jan./March 4 3/16 to and July/Sept. 4g to 4 13/32d, and value. Crepe sold spot 4 11/16d and value.

COPRA: This is the real thing for some enterprising firm to handle, and get the product out on its own a bit, instead of it being the plaything, but money maker, for the corporation and high financiers.

The Lane calls the market “steady ”

Straits F.M.S. quoted £10 and buyers; Jan. sold at £10; Feb. sold £10/1/3, and buyers, also for more at that figure; South Sea F.M.S., Dec./Jan. £8/7/6, value c.i.f.; Rotterdam, kiln-dried, £ 8/2/6 and sellers to Marseilles. The official spot prices show a premium of 7/6 per ton on Straits and 12/6 per ton on South Seas F.M.S.

The outlook is not any better and, whilst the existing ring lasts, and the trading concerns can and do pay bumper divi dends, the planter cannot hope for any thing better. The whole system of copra

marketing is the most disgraceful thing under the sun, and not one person suffers except the planter himself. The freight owner, the trader and the big ten-fisted margarine-cum-soap, cum-candy com bine, all make their full pound of flesh, whilst the planter needs to watch every penny and restrict his spending and holi days. Anyone connected with any of the the foregoing octupii may be seen flash ing their wealth, taking extended holi days and generally making the people who don’t know, think the cocoanut man is able to enjoy life. This writer told “Dad” Forsyth in Rabaul, less than three years ago, that copra would go below £12 per ton in Europe, and he laughed at me.

“Dad” has gone now, but what would he think of to-day’s price of just over £8, and still without any sign of any im provement?

LONDON, January 10.

Conditions in the produce market do not show many signs of improvement. The prices for copra are lower than they have been for several years, and it is not pos sible to get any opinion of the future from any of the people who should know.

The tonnage of butter from all the but ter producing countries has increased enormously, whilst there is a correspond ing increase in the amount of edible fats available.

The crux of the position is, I think, the fact that the combine is not passing onto the consumer the benefits of the low prices of edible fats, but using the ill gained profits to boost the non-paying sections of the corporation. The Unilever combine must have lost enormous sums on their cocoa ventures, but somehow or other they always appear to be able to make a good show in their balance sheets, and one wonders what would really hap pen if they had to break up this octupus, and work all their holdings individually.

The cocoa market is dull, although there are slight attempts being made to get the price up a little. The value of Samoan at the time of writing is from £20 to £30 per ton, in bond in London.

I am unable to find any having being sold at the price indicated in your last issue, i.e., £7 per ton, and made very definite inquiries in this.