Copra Price

Optimism—With Political and Economic Uncertainty

THE copra market remains lifeless, despite the expectation of all good judges that there must be an early rise.

One uncertain, puzzling factor is the Philippines output (one-fourth of the world’s production) in relation to Ameri can consumption. U.S.A., for 6 months ended June 30, imported 88,000 tons of copra and 86,000 tons of coconut oil, compared with 124,000 tons and 94,000 tons in January-June, 1934. Everything indicates a great shortage of vegetable oils and fats in America: yet in recent weeks the American quotation has fallen, instead of rising; and Philippines copra, in consequence has turned to the Euro pean market and held down the price there. Normally, U.S.A. takes all the Philippines copra.

In Europe, at this moment (September 20), there is great political unrest and, in the economic field, much uncertainty about the future of the guilder. Huge quantities of gold are leaving Holland.

That, of course, must react unfavourably on the copra market.

London commentators remain undis mayed. They insist that, as soon as war alarms and excursions permit an inter national stocktaking, copra prices must increase.