Copra Price

Market in Healthy Condition

THE copra market continues in a remarkably healthy condition. The price, as we forecast last issue, sagged somewhat after mid-January; but since then it has recovered and, at the moment of writing, the value of copra is higher than at any time since the end of 1932.

The feeling among Sydney traders is optimistic—there are some shrewd judges of the market who think that the London price may shortly settle down at not less than £15.

Causes have been intriguing everyone.

The following is the summary of the Fiji Coconut Planters’ Union: “We are inclined to give a lot of the credit to Roosevelt for imposing a processing tax on coconut oil. The effect of this was to drive up the price of tal low in the United States. With the wholesale slaughtering of cattle, carried out as part of the National Recovery pro gramme, a shortage of material has become evident in the fats and oils mar ket. The manufacturer turns naturally to the oil section and a bigger demand is felt for cotton seed oil, etc. On top of this comes the news of a reduction in the cotton crop from 13,000,000 bales last season to 9,750,000 this season, whilst there has also been a heavy reduction in the maize crop. There is also a con siderable reduction in the soya bean and peanut crops.”

The following is from the monthly circular of Messrs. Faure, Blattman and Co., London, dated January 2: “It is becoming increasingly clear that for some long time to come there will not be any Philippine copra available for European ports. The crop has been damaged by the recent typhoon and this year it is expected that there will be a total decrease of 15 per cent. Edible oils in America are very firm, and there fore U.S.A. crushers will be able to fully take care of supplies from the Philip pines.”

So many factors affect the copra market that a forecast is a risky thing.

But it is pretty certain that if the American demand for copra continues — and everything indicates that it will— the European market will remain in its present comparatively healthy condition lor some time to come.